Friday, March 5, 2021

What are the tax obligations for buying or selling NFTs?

I know this can differ wildly based on location so to specify I'm in the US.

From this guide on Coinbase several taxable events include selling crypto for cash, receiving mined crypto, buying one crypto with another (i.e. converting). Several non-taxable events listed are things like buying with cash and hodling, and transferring crypto between wallets.

I am a bit unsure here as selling NFTs seems like the buyer just transferring the crypto to the sellers wallet, a non-taxable event. But what does "receiving mined crypto" mean then? Like you mined it yourself? Otherwise it would apply to every coin? I just could use some clarity if folks know.


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