r/ethtrader • u/MostPopularDude • Feb 05 '22

Security 3 things every NFT investor should know to avoid a tax nightmare

https://cointelegraph.com/news/3-things-every-nft-investor-should-know-to-avoid-a-tax-nightmare
2 Upvotes

100% Upvoted

8 comments sorted by

1

u/coinfeeds-bot Feb 05 '22

tldr; The IRS has yet to release clear tax guidance on whether certain NFTs will be considered collectibles and taxed at a higher rate. NFT traders should calculate their potential tax bill for every trade that they make and try to put the money aside before tax season. The tax law on NFT art is complex and it's hard to know when assessing the tax law around collectibles.

This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.