I am not planning on converting any of the linden dollars I make to US dollars, therefore I will not have any income. I am going to give all my dollars away to KIVA inside the game, and they can exchange for real dollars. I don't know how they report that on the tax. Money from avatars? I am donating my time. Hey, isn't that a tax write off?
So it seems you can make money by camping out at certain places. Apparently camping out over night brings in lots of linden dollars. That's how the SecondLife KIVA group has made enough money for the 5 loans. This just blows me away, that money can be created from my imaginary person sitting on an imaginary camp stool.

Like my KIVA car? And check out the new KIVAFRIENDS sign. if you touch it, a box opens up and asks if you want to open the web page
www.kivafriends.orgAnd dig my KIVA bracelet? I made that. I have a few for sale too
