How does the IRS treat NFTs for tax purposes in the United States?

1 answers

• Dec 18, 2021 · 3 years ago
  At BYDFi, we understand that the IRS treats NFTs as property for tax purposes. This means that any gains from the sale of NFTs are subject to capital gains tax. The tax rate depends on how long you held the NFT before selling it. If you held it for less than a year, it is considered a short-term capital gain and taxed at your ordinary income tax rate. If you held it for more than a year, it is considered a long-term capital gain and taxed at a lower rate. It's important to keep track of your NFT transactions and report them accurately on your tax return to stay compliant with the IRS.
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