Wednesday, February 22, 2006

Pretend Money

Today I read about some serious money won in a lottery and the income tax laws pertaining to income from winning virtual games on the internet

The net income post taxes after the money was divided eight ways in the case of the lottery winner was simple enough to work out, but not so the taxes applicable to virtual income. By when I figure that one out I may even be able to understand how and why a quantum computer works better when switched off.

Well meaning friends tell me that I need to acquire some fiscal smarts the lack of which is painfully evident to them. I tell them that I am pinning my hopes on J. In a few years she will have enough math for me to introduce her to basics in investing. She can start small and hopefully she'll get a kick out of making her money work for her. Until then I just have to remain clueless about all things fiscal including taxes on "pretend" money.

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