How does the IRS treat NFT sales in terms of taxation?

1 answers

• Ramachandran RamJun 15, 2023 · 2 years ago
  As a representative of BYDFi, I can tell you that the IRS treats NFT sales in terms of taxation in a similar way to other capital assets. Any profit made from selling an NFT is 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 accurately report your NFT sales on your tax return to comply with IRS regulations.
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