Investors’ income from digital art might be taxed at 34%.
Influencers like Justin Bieber and Melania Trump debuted memorabilia and digital art. The IRS is now ready to target the $44 billion crypto business as tax season approaches.
Influencers like Justin Bieber and Melania Trump have helped to boost the $44 billion business. The US Internal Revenue Service (IRS) may target the NFT industry as tax season approaches.
The IRS has stated they are ready to collect taxes on NFTs.
Cyber and Forensic Services Acting Executive Director Jarod Koopman comments
There will likely be an influx of possible NFT tax evasion or other crypto-asset tax evasion cases.
The US government has decided to audit the NFT business and tax digital art and collectibles investors. Currently, NFT taxation regulations are unclear; collectors must determine taxes due.
According to San Francisco tax attorney James Creech,
You can’t avoid reporting gains or losses because the IRS hasn’t provided adequate advice. The more difficult it is to reach a decent — or ideal — conclusion, the simpler it is to disregard.
Proponents expect the IRS would first clarify NFT tax laws to make filing easier before cracking down on defaulters.
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Wondering what NFTs are? Here’s a guide on – What are NFTs
Want to get one yourself? Here’s more info on – Where to buy NFTs
Wondering how NFTs work? Here’s your guide.
How to invest in NFTs – Earn money from NFTs by investing, maybe?
How to buy NFTs – Buy an NFT yourself.
Also, check out the guide on – How to make money with NFTs
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And finally, read on how to sell NFTs. Useful stuff! 😉