The Tax Consequences Of Cryptocurrency!

If you are into cryptocurrency trading, it may be important for you to be informed of how gains will be taxed. While the IRS has issued some guidance as to the tax consequences of transactions involving “virtual currency” or “cryptocurrency” (see Notice 2014-21 and Rev. Rul. 2019-24), it has yet to address the tax treatment of NFTs specifically as a crypto asset and their gain, loss, or income generation. The IRS is likely to label NFTs in the hands of their creators as noncapital assets and categorize NFTs held by taxpayers as capital assets, that means gains and losses on the sale or exchange of NFTs held by their creators would be ordinary gains and losses, and gains or losses held by taxpayers would be capital gains and losses. #cryptocurrency #nft #taxes #tax #IRS

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https://www.journalofaccountancy.com/news/2021/jun/tax-consequences-of-nfts-nonfungible-tokens.html