No products in the cart.
- Latest
- Trending
ADVERTISEMENT
One of the challenges with new assets like NFTs is how exactly to pay taxes. After all, most existing tax codes were created long before NFTs existed. As such, the treatment of NFTs under tax law remains an industry-wide issue.
Fortunately, U.S. Internal Revenue Service (IRS) has made this clearer in their updated tax code.
A new draft released by the IRS provides some clarifications for those filing Form 1040. More specifically, the terminology used for one of the asset classes has changed from ‘virtual currency’ to ‘digital asset’. Not only has this name changed, The documentation explicitly mentions NFT Please note that it is included.
“A digital asset is a digital representation of value recorded on a cryptographically secured distributed ledger or similar technology. For example, digital assets include non-fungible tokens (NFTs) and virtual currencies such as cryptocurrencies and stablecoins. the document reads.
The move clears up a lot of potential confusion regarding the positioning of NFTs in tax procedures and means that those who invest in NFTs can stay on the right side of the law.
Discover the world of NFTs >> Ultimate NFT Guide
want more? Connect with NFT Plaza
Join our weekly newsletter
Join Discord
follow me on twitter
Like us on Facebook
Follow us on Instagram
*All investment/financial opinions expressed by NFT Plaza are based on the personal research and experience of the site moderators and are intended for educational material only. , the product should be thoroughly investigated.
Tokoni Uti has written extensively on blockchain and cryptocurrencies over the years. Her work has been featured on sites such as BTCmanager and Blockchain Reporter. She has a degree in Corporate Communications.
