Bought NFTs? There’s A Tax For That, And Other Ways The IRS Is Eyeing Crypto

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NFTs volume is dropping after an initial bubble-like storm of interest and millions pouring into the emerging digital goods market. But it could be because crypto investors are realizing as they wrap up last year’s taxes – extended to May 17 in the United States – that buying such tokens with Ethereum results in a taxable transaction. Here’s some of the tax pitfalls investors might want to avoid, and how the IRS is cracking down on things like NFT sales and other unreported crypto earnings. Cryptocurrency Regulation And Tax Crackdown Is Coming Like winter in Game of Thrones, regulation is coming to the crypto market, eventually. Some governments are considering banning it, while others are embracing it. The United States, however, is somewhere in between. The country known for tech innovation and being the epicenter of finance, has been mostly neutral on crypto. There have been moments where policymakers appear…

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