New IRS tax rules on NFTs

NFTs, like cryptocurrencies, evolve at an invaluable speed and scare regulators. If the sector begins to recover, the Internal Revenue Service (IRS), a sub-section of the US Treasury Department, intends to establish certain tax rules concerning the area. However, they may not appeal to everyone.

United States, a tax on NFTs?

Digital activity is growing out of proportion, especially in the United States. The more time passes, the more the world turns to crypto assets. In view of the many gains generated, the IRS, a subsection of the US Treasury Department, introduced a bill to establish new tax rules on NFTs.

Just like cryptocurrencies, regulators take a dim view of non-fungible tokens and believe that they could be used for less noble causes than we think. Thus, this bill stipulates that citizens must now make a declaration on earned income, total income and on withheld income. Therefore, when filing your return on a standard piece of paper, you must ensure that you tick the appropriate box if you have capital gains distributions.

However, this is only valid if you were not required to complete Schedule D. The Internal Revenue Service wishes to regulate the sector and keep control over activities and income. However, these measures will certainly not be suitable for everyone.

Remember that the particularity of the crypto ecosystem is its decentralization. These tax rules on NFTs could then take on other proportions. Massive adoption is already causing industry players to ask questions. In particular, that of decentralization. As NFTs move closer to traditional finance, one wonders what place it will hold in the future.

The growing development of non-fungible tokens pushes the IRS to establish new tax rules on NFTs. However, this is only the preliminary version of a tax form. It will only be effective after it has been submitted to the Office of Management and Budget (OMB).

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Eddy Senga avatar
Eddy Senga

The world is changing and adaptation is the best weapon to survive in this undulating universe. As a crypto community manager at the base, I am interested in everything directly or indirectly related to the blockchain and its derivatives. In order to share my experience and make known a field that fascinates me, nothing better than writing informative and relaxed articles at the same time.

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