Watch Out NFT Collectors, Uncle Sam’s Coming for You
With the explosion of NFTs within the last two years, the money has been hot for creators and collectors alike. Finally, the IRS decided to come in and break up the fun.
While the IRS hasn’t explicitly stated what their taxing policy for NFT holders will be, there is room for speculation. Based on experts in the tax and finance industry, it might be safe to assume that NFT holdings could be considered as collectibles.
Accounting professionals gave their thoughts to CNBC on the issue. St. Louis-based certified financial planner and accountant at Buckingham Wealth Partners Jeffrey Levine said, “I don’t see how it’s not a collectible.”
Looking at the dollars and cents of it all, the tax on collector’s items is based on the individual’s tax bracket.
“Investors pay ordinary income-tax rates on collectibles’ appreciation, up to a maximum 28%. (There are seven marginal income tax rates — 10%, 12%, 22%, 24%, 32%, 35% and 37% — which correspond with income.) For example, a single taxpayer in the 22% tax bracket — which applied to income between roughly $41,000 and $86,000 last year — would pay a 22% top rate on the long-term appreciation of collectibles. Conversely, someone in the 37% bracket — which applies to income over about $524,000 — would see their collectible rate capped at 28%.” - Greg Lacurci, MSNBC
Shehan Chandrasekera, an accountant and head of tax at CoinTracker said, “If you have artwork or a classic car, for example, you’re [likely] a super-high-net-worth individual, which is why the IRS has this special long-term capital-gains tax rate.”
These dollar deliberations are still taking place with nothing set in stone. Troy Lewis, associate professor of accounting and tax at Brigham Young University said, “It’s not well settled yet because it’s still a brand-new area.”
Antonio Brown Meltdown Up for Auction
When the Buc’s wide receiver stormed off the field, people probably had no idea the viral moment would reach million dollar NFT potential. But that’s exactly how it’s played out.
The NFT will be going up for auction on January 13. How much, you ask? Approximately $1.5 million. Now that’s a pretty penny.
Online replaying of the scene garnered over 11.5 million views on Twitter, according to TMZ.
The shocking exit resulted in Brown getting kicked off the Bucs after having only joined the team in 2020.
Going Off the Rails on a CryptoBat
If you thought it was only crypto junkies who were head over heels for the NFT game, you’d be wrong. Some of the people making headway in the industry are household name celebs. Who woulda thunk? Celebrities, they’re just like us!
The latest celeb x NFT collab is that of 1970s rock star Ozzy Osbourne. Apparently, Ozzy had asked wife Sharon for a Bored Ape for Christmas, as he had been wanting to get into the NFT scene for a while, but the Bored Ape did not appear under the tree. After some other failed NFT attempts, Ozzy decided to put the future of NFTs into his own hands and created his own.
Welcome, CryptoBatz! A digital piece of memorabilia honoring Ozzy’s infamous bat-biting incident of the 80s.
The Batz will go up for mint starting January 20.
In a move that is being hailed as a game changer for the entertainment industry, Warner Bros. Home Entertainment has announced the launch of the WB Movieverse with The Lord of the Rings: The Fellowship of the Ring (Extended Version) Web3 Movie Experience NFT. This groundbreaking new release will allow fans to engage with the film in ways never before possible!
Reddit has onboarded millions of new users to NFTs during a bear market. Read on to learn more.