New to the NFT world in 2021? Perhaps you've been crushing it this year in TopShot, BAYC, Crypto or any of the other projects that mooned. Now you're swimming in cash (ETH) but a little worried how this is going to affect your taxes. I'm here to help with all those tax questions.
@AtownBrown@DJohnson_CPA@TheNFTCPA Personal NFT trading handled somewhat similar to stock trading. Comparing proceeds at sale to cost basis to determine LT or ST capital gains/losses.
@AtownBrown@DJohnson_CPA@TheNFTCPA The income amount would be FMV at the time you received it. If you received it for business, income would be included in sch C income. If personal airdrop/raffle, it would ordinary income.
Companies are starting to accept crypto for payment. Be mindful that paying someone with crypto will trigger a taxable event for you.
Donβt pay more tax than you have to π€·π»ββοΈ