NFTs to be taxed in the US?
The 2021 version of the Internal Revenue Service form 1040 saliently featured a line item [highlighted in the snapshot attached] asking if filers at any time during the year “received, sold, exchanged, or otherwise disposed of any financial interest in any virtual currency.” The said specification, to some extent, implied that the agency intended to make crypto a point of focus in the future. Source: Watcher Guru Archives Scope expanded to NFTs The agency recently updated its annual income tax instructions and per the released draft, the taxable category does not include the phrase “virtual currency” anymore. In a move to expand the scope of accounted assets, the said phrase has been replaced with “digital assets,” which outrightly includes Non-Fungible Tokens [NFTs]. Per the draft instructions, “Digital assets are any digital representations of value that are recorded on a crypto graphically secured distributed ledger or any similar ...