It comes as no surprise that NFTs have captivated news headlines all over the world throughout 2021. The concept that people are spending as little as a dollar all the way up to 69 million dollars (The first 5000 Days by Beeple) on what was once considered a JPEG can be mind boggling and to some quite upsetting. Many proponents and early adopters of the underlying tech behind NFTs claim this technology is revolutionary and even life changing. Although the immutable and transparent nature that powers NFTs makes for a seamless marketplace, the benefits of this technology have yet to be fully realized. What is certain however, is any capital gains realized from minting, selling, or trading NFTs will be taxed by the government. Although the IRS has yet to publish clear guidelines on how this new asset shall be taxed, many tax experts agree that profits will likely be taxed as ordinary income and investors could face up to a 37% tax on their gains.
This segment aired on 5 Live on Jan. 18, 2022
