V-Bucks Not Taxable!

So, you know that the IRS views cryptocurrency as an “asset.”

So, if you sell your Bitcoin at a profit, you have a capital gain that is taxable.

Recently, there was a rumor that virtual currency that you won in video games like Fortnite was also being considered by the Tax Man as cryptocurrency that would be taxable. Thus, making your Fortnite V-Bucks subject to capital gains, and creating a potential tax cheat in your 14 year old.

Fortnite-free-V-Bucks-938251

However, perhaps because someone in a white house uses “executive time” to play Roblox, the IRS issued a release stating that to avoid public confusion “Transacting in virtual currencies as part of a game that do not leave the game environment (virtual currencies that are not convertible) would not require a taxpayer to indicate this on their tax return.”

So, game players are safe for now.

https://www.irs.gov/newsroom/irs-statement-on-changes-to-virtual-currency-webpage

About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at: http://www.linkedin.com/pub/jeffrey-a-koeppel/0/63/5a9
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