Your only hope in this situation is some tax software add on for the game. I’ve used current crypto tax software, and it’s a complete joke. You might as well just assume you’re going to be audited if you do anything with crypto.
Your only hope in this situation is some tax software add on for the game. I’ve used current crypto tax software, and it’s a complete joke. You might as well just assume you’re going to be audited if you do anything with crypto.
If you're building a web3 game, and you don't offer a tool to export your in-game transactions to an easily importable turbotax format. US players can't play it.
But the problem is more complicated, everything in crypto is composable. So I could build a business off in-game assets, and the tool creator might have no clue that exists. So for example, in my space game example.... I might be able to use my minerals as collateral for a loan to buy another space ship. That loan might exist on a platform not developed by the game developers, and if it was the game devs that built the tax tool you're using... it might not properly capture that event. Maybe another platform offers insurance on that ship, and I need to pay a premium. The tool might not caputre THAT. The posssibilities for building a really cool space game are infinite, but these in-game events have real-world tax implications.
And much like with Axie infinity, it's a job that can only keep paying as long as there is either VC capital to burn or an influx of new people willing to pay your salary.
It's why I think every p2e game idea I've ever seen get proposed has had completely asinine sounding game play but plenty of opportunities to (in theory) make money off of taking advantage of lower sophistication players. The game play itself is secondary. What no one seems to recognize is that if the game itself isn't fun, there won't be any "normal" players around for them to fleece.