“If you exchange crypto for any other asset, you immediately recognize a capital gain or loss,” said Robert Frank.
Tax season is almost upon crypto users based in the United States, and even if they plan on keeping their assets digital, nonfungible token — or NFT — buyers might not get off scot-free.According to a CNBC report today, people who use the profits from their crypto holdings to purchase NFTs will likely still have to pay capital gains tax up to 20% when filing their U.S. taxes. “Collectors who are buying NFTs with their cryptocurrency gains could face large tax bills this year for deals that most probably thought were tax free,” said CNBC’s Robert Frank. “The IRS considers crypto a capital asset, not a currency, and if you exchange crypto for any other asset, you immediately recognize a capital gain or loss.”Frank claimed that “Most platforms that sell NFTs are not reporting to the IRS” despite many of the p
From Dogecoin to WIF to SHIB: How are your memecoins doing today?
Within the crypto industry, the memecoins emerged as the top performer, yielding the highest returns compared to other…
