US Taxation Department studying NFT . tax

The US Tax Bill 2022 now requires taxes on digital assets, including NFTs.

This week, the US Internal Revenue Service (IRS) responded, clarifying a question from crypto investors about how to pay taxes on the NFT.

In its latest updated draft of 2022 guidance, the U.S. Treasury Department’s Tax Department mentioned that the term “digital currency” on Form 1040 has been changed to “digital assets.” “. This information is seen as an explicit endorsement of NFT property taxation.

Specifically, “digital asset” in the draft refers to any asset whose value is recorded on a distributed ledger, secured by cryptography or any similar technology. Along with that, the draft also gives specific examples of digital assets, including non-fungible tokens (NFTs), cryptocurrencies and stablecoins.

Remember, a year ago, in the US tax filing guidelines, the section “cryptocurrency” was still a narrower definition, simply specifying assets that “function as a unit of finance, a store of value or a medium of exchange”.

However, as the final tax payment guidelines have not yet been released, the provisions of the electronic property section may still be subject to revision before being applied.

The latest document states that by 2022, crypto investors will be required to calculate and report taxable income if “owns any digital asset as a capital asset, conducts sale, exchange, gift or transfer.”