Quote:
Originally Posted by Hrmmmm
I agree with you here. I'm not sure there are any real precedents to dealing with this. The problem is that you have to pay taxes on sweepstakes much like you have to pay taxes on poker, but when exactly does a sweepstakes situation become a prize? Is it a prize when you win a pot or a when Global changes it into cash? I would say that when Global exchanges the $weeps Cash for cash then it becomes a prize.
For now that is how I am seeing it. And my argument for this being, what if I was playing the McDonald's Monopoly game of old.
I get the pieces for Boardwalk and Park Place which means I am going to win the cool $1,000,000 prize. When would I pay taxes on this win? Obviously the pieces before they are turned in hold no taxable value.
Its once I go and turn in those game pieces for USD that I would see tax forms and claim those winnings.
So for all of that reason and logic, I won't be claiming anything until it comes into my PayPal account. And this is also one of the reasons I am not moving money back and forth a lot either, I would rather keep the bankroll in Global (despite the risks associated) than move the money back and forth and create the problem of whether or not I can claim deductions of money that goes in.
Because there again, I am only purchasing Gold Coins, and getting bonus $weeps Cash, where as when I play on a different regulated real money site, I would be able to count things as losses and gains. I won't be taking as a deduction any money I put into Candy Crush. I get that Candy Crush won't ever redeem my funds for real USD, unlike Global, but I don't know that the government cares. Buying of virtual goods for entertainment isn't going to be a tax deduction no matter how you want to dress it up.