Posted on 03/26/2023 6:15:20 AM PDT by Twotone
The IRS said it plans to tax some non-fungible tokens, or NFTs, as collectibles akin to art or gems — an approach that would tax profits for wealthy owners at a higher rate relative to assets such as stocks, real estate and cryptocurrency.
The federal government levies taxes on collectibles held for more than a year at a top rate of 28%. It generally levies a top 20% rate on other investments.
In a notice on Monday, the IRS said it intends to issue guidance regarding the treatment of certain NFTs as collectibles.
NFTs are essentially one-of-a-kind digital assets, which can extend beyond digital art to include things such as such as tweets and GIFs. They sometimes also give owners a right with respect to a non-digital asset, like a right to attend a ticketed event or certify ownership of a physical item.
The IRS requested comments from the public, which are due by June 19.
“The IRS hasn’t said anything about NFTs until now,” said Shehan Chandrasekera, an accountant and head of tax strategy at CoinTracker. “This is kind of like half guidance because it’s not finalized yet.”
(Excerpt) Read more at cnbc.com ...
The newest irs mantra...”it’s Not your money and you Can’t use it when you want to”. Theft is only legal when government does it.
Well, if we are going to tax people, which we are, then it is only fair to tax everyone equally. Just because someone is profiting in NFT doesn’t exempt them. Now, are these the right rules to apply, when is the profit realized? That I guess is the real question.
Since NFTs have likely dropped in value in the wake of the crypto assets, this means their owners can sell them, realize the loss, and get a tax benefit.
The IRS has a brutal deal going on how they treat gains vs losses.
Gains are taxed immediately, large losses (for tax purposes) are spread out over many years.
It is classic heads we win tails you lose government.
I think the issue is that NFTs will be taxed at the higher 28% maximum capital gains rate rather than 20% like most investments. If you buy stock or land you get the lower rate. If you buy gold, art or NFTs you get the higher collectible rate.
Or it might be sort of a rule like owning your own business. They will allow you to take a loss in two out of five years so long as you report a profit in the other three years.
Will this help to greatly eliminate our national debt?
Did the rich create our national debt?
The tax code is apparently not yet complicated nor sadistic enough for our masters in Washington.
Are there many NFTs that are profitable?
“..NFTs will be taxed at the higher 28% maximum capital gains rate rather than 20% like most investments.”
For us mortals with yearly taxable income less than $550K, the long term capital gains rate is still 15%.
I personally think a lot of the NFT stuff is money washing. But, yah, during the last crypto climb some were trading in the the many millions. One sold for over 90 million.
$90 million? You ain’t getting THAT today. LOL.
For some reason, rich is NEVER defined.
???
A non-digital asset
Just one part of Obama’s digital currency plan.
aka If they can’t remove it from you via computer it’s not yours.
Hitler loved art too to bad Obama doesn’t understands it only knows it’s worth money.
Oh ooos. Guess I should’ve told em I had collectibles
Reduce the national debt?
Congress always insists on spending more than the treasury receives in taxes. ALWAYS.
Those of us with functional brain cells will recall Donald Trump’s “big announcement” a couple months ago ...
Remember? NFT “baseball cards” showing his majesty in various ridiculous costumes. His enthusiasts bought them, and some apparently sold very quickly for huge (YUGE?) profits.
More power to ‘em.
But the ‘Rat controlled IRS cannot have failed to notice.
I don’t believe in coincidences ...
"The [constitutionally undefined] IRS plans to tax some NFTs as collectibles — and the rich would pay up to 28% on profits"
FR: Never Accept the Premise of Your Opponent’s Argument
Under the Constitution, its never been the job of non-popularly-elected government bureaucrats to make rules that citizens must comply with. The drafters of the Constitution expected popularly elected lawmakers to accept the risk of being booted out of office by voters for supporting unpopular legislation.
In other words, government bureaucrats not only wrongly weaken the constitutionally enumerated voting power of ordinary qualified citizen voters, but have probably helped to foster the emergence of career lawmakers who let bureaucrats get away with stealing state powers to their dirty work for them.
Patriots, the bottom line is this imo. What is your threshold of “pain” for peacefully stopping unconstitutionally big state and federal governments controlled by bully, constitutionally undefined political parties, from oppressing the people under their boots?
The inevitable remedy for ongoing, post-17A ratification, corrupt political party treason (imo)...
All MAGA patriots need to wake up their RINO federal and state lawmakers by making the following clear to them.
If they don’t publicly support either a resolution, or a Constitutional Convention, to effectively "secede" ALL the states from the unconstitutionally big federal government by amending the Constitution to repeal the 16th (direct taxes) and 17th (popular voting for federal senators) Amendments (16&17A), doing so before the primary elections in 2024, that YOU will primary them.
If the proposed amendment was limited strictly to repealing 16&17A, relatively little or ideally no discussion would be needed before ratification of the amendment imo.
With 16&17A out of the way, my hope is that Trump 47 becomes the FIRST president of a truly constitutionally limited power federal government.
In the meanwhile, I'm not holding my breath for significant MAGA legislation to appear in the first 100 days of new term for what may still prove to be another RINO-controlled House.
In other words, primarying RINOs in 2022 was just for practice. Trump will hopefully do another round of primarying for 2024 elections.
Don’t ask don’t tell.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.