Have you been gifted an NFT? If you’ve made a profit from the sale or traded your NFT, it could trigger a taxable event in the eyes of the IRS. This flowchart can help get you ready for crypto tax season, as part of TaxWeek, sponsored by koinly:
, the sector’s total market cap amounts to over $13 billion. And yet, despite the industry’s astronomical size and continued growth, there remains a lack of clarity around NFT taxation for both creators and collectors alike.and replaced the term “virtual currency” with “digital assets,” a broader label to encompass both NFTs and cryptocurrencies.
The IRS treats digital assets as property, meaning they are subject to capital gains tax rates.While the guidance remains somewhat murky, below are the general NFT-related rules of thumb to consider when filing your 2022 taxes in the U.S. Note that there is not yet any official guidance from the IRS on commissions orDisclaimer: This is not tax advice, and we strongly recommend engaging with a tax professional before filing your 2022 tax return.
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