The Thing That No One Wants To Talk About in NFTs

Jack Settleman breaks down an important conversation in the NFT landscape.

Michael Caloca / ONE37pm

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. 

These are just a few things to keep in mind as we approach the end of the calendar year. 

If yall have questions, I’d love to answer them on twitter, @jacksettleman. 

Now, if you want to keep that NFT over the next decade or so. You will want to keep it secure. 

This is how you do it. 

When it comes to NFT security, we haven’t really faced much of a threat when it comes to criminalization in this market.

However, this month, we had the first story to break in regards to a stolen NFT product. The amount in jeopardy? 600 million. Woah. 

An important thing to do would be to write down your Metamask account information and store that somewhere safe. 

Another you should do to protect your asset is to connect with your ledger or trezor. These are offline storage devices. 

These are things you may want to keep in mind when it comes to protecting your NFT’s. It is safer to be ahead of stuff than it is to be reactive to a problem. 

Did you like this article?
Thumbs Up
Thumbs Down