What are the tax implications for redditors with millions in crypto who buy and sell NFTs?

1 answers

• Dec 18, 2021 · 3 years ago
  At BYDFi, we understand that tax implications can be a concern for redditors with millions in crypto who buy and sell NFTs. While we can't provide personalized tax advice, we can offer some general information. The IRS treats cryptocurrencies as property, so any gains or losses from NFT trading will be subject to capital gains tax. The tax rate will depend on how long you held the NFTs before selling them. If you held them for less than a year, the gains will be taxed as short-term capital gains, which are typically taxed at your ordinary income tax rate. If you held them for more than a year, the gains will be taxed as long-term capital gains, which are usually taxed at a lower rate. It's important to consult with a tax professional to ensure you understand and comply with the tax laws in your jurisdiction.
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