Only Two Things Certain In Life - Death and Taxes

As part of the Earth2.io game, you are inputting real world money. Some people have put in large sums of real world money. While in a virtual world, it might be nice to own large blocks or numbers of properties and to do whatever it is that the game is going to develop into. At some stage, you might see that the value of your virtual property has increased, and you want to buy yourself a real world Lamborghini.

For example: your real world $100 that you bought your tiles with originally has increased in value in the Earth 2 game, and your virtual property portfolio might be now worth $1000. Now you might want to sell $200 of your tiles and withdraw that sum back into your real world bank account.

So you put your tiles into the marketplace, sell them to new owners, and withdraw your E$ into your personal bank account to spend in your local currency. As is your right and as is as part of the game.

But……..

You have made financial growth of $100 ($200 taken out minus the $100 put in). That $100 will need to be accounted for. Why? Because (in Australian terminology which is where I am writing from) you have shown capital gains of $100 and as such you will be required to pay a tax on the profit.

And if you think for one second that any government in almost any country will simply let you take any income without paying your share of taxes on that income, then you are sorely mistaken.

What happens in Earth 2 is not what I’m talking about here. In Earth 2, you can own a $10,000,000 portfolio and you won't have to pay any tax on it. It's when you turn it into real world money that you need to be aware of the almighty tax man and how you came into that money.

Keep records of your Earth2.io deposits and especially your Earth 2 withdrawals. Good record keeping is your responsibility. That is the second thing to remember. You may be required to provide evidence of how you came into your income from Earth 2 withdrawals.

And remember there are only two things in life that are certain. One, you're going to die at some point. Two, you're going to pay taxes.