So far, everyone wants to talk about the fun things when it comes to NFT’s. But there is a larger conversation that needs to be held in regards to the legal implications in this growing space.
As people buy, sell, and trade NFT’s, these assets will become important plot points in your tax records. With this being such a new market, there are a lot of questions and uncertainties about how these assets will be viewed during tax season.
There are only four months left in the year and we need to remember that taxes WILL BE A THING.
This week, I had a meeting to talk about the tax implications on NFT’s. They specialize in major gains taxes, which can increase liquidity, and push off the required tax payment. For example, let’s say you buy an NFT for ten grand. You sell it for a million. You would owe the government about 500,000. Half. Yes, half a million. Let that sink in.
With this method, you could keep the full million and push the tax consequence down the road.
Do you think you could make 500,000 dollars over the next 30 years if you already had a million? Yes. Of course. With a bond alone, you could accomplish that.