The real question is if the sell of pixels should be classified as the sale of a capital asset and reported on your Schedule D, in which case the cost basis can be taken into account, or, is it considered business income reportable on your Schedule C, in which case you'll need to make estimated tax payments and pay self employment tax. I'll request a private letter ruling from the IRS on this matter.
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Checkraise Dragonslayer <Retired>
"My armor color matches my playstyle"
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