Indy- actually got one of those in a fax the other day.

Do you suppose he has to pay tax on the revenue he creates with this online island?

I think that a more important question is; is there any way that he can classsify the pruchase as a tax deduction? And don't say that it is not possible! Stranger things have happened...

Only if the profits go to charity or to save some obscure species of endangered salamander that's also only found online.

The acquisition cost most likely is the hardest thing to turn into a deduction outright (operating costs would be deductible if this were a business) but it could be deducted if one were, say, investigating this phenomenon for business purposes and are able to show that this was all R&D expenditure.

Or it could have been part of the buyer's "Workcover" rehabilitation Indy. It would end up being classified as depreciation I imagine . Hmm, I wonder if it is an investment? Ie. would the island be worth more with the passage of time, or would it simply cease to exist when the game's servers are turned off for the final time? That is the question...