To avoid the tax nightmare things an NFT investor should be aware of
The year 2021 can be considered as the year of NFT because, according to estimations, the NFTs have generated more than US 23 billion in trading volume. NFT has opened up the scope of a new type of investment where investors can earn up to 100x of their initial investment. People are searching for potential investment opportunities in platforms like OpenSea and Discord to tap into the next opportunity.
But the NFT investors also need to understand the tax implications that have been implemented in multiple countries. When the bull run of 2017 was going on, many investors piled up the tax amount, and when the market crashed, they were no longer able to pay the tax amount because of the unavailability of the funds. This is the primary information that every NFT investor needs to know about the NFT tax charges.
- Whenever someone purchases NFT, they are most likely to be taxed.
- You need to pay taxes while selling NFT.
- Your NFTs can also be considered as collectables.