I mean those making 50k+ a year selling neopet or other virtual currencies. What did you do for tax reporting?

Did you open up a LLC? Did you do a schedule c on your tax return? I have a friend likely to make over 150k in sales this year after he perfected a few tools in highly popular online MMOs.

How did you track "inventory" and how did you value it?
When an account was banned did you take whatever currency was on it and count that as a write off/loss?

I want ro help him grow thia and report income and expenses the proper way but I have not worked with anyone who did virtual sales of this magnitude.

Having the tax background he reached out to me and I want ti help him where possible. If anyone with this kind of business history can message me and tell me exactly what they did or do it would be appreciated.

Thanks guys!