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IRS releases new tax guidelines for NFTs and stablecoins

IRS

The United States IRS has announced a new taxation system covering NFTs under its latest 2022 guidelines. Traders and investors in the crypto space dealing in NFTs can heave a sigh of relief as to how they would be taxed on their assets. The body stated that the new 2022 guidelines for crypto would tax both NFTs and stablecoins under the same category as digital assets. This latest guideline is an update from last year, which classed stablecoins and crypto under ‘virtual assets.

IRS groups NFTs and stablecoins under crypto tax

The IRS stated that any resident in the US involved in assets would be liable to pay capital gains tax if they have sold any digital asset by any means. This includes gifting, selling, exchanging assets. Adding to that, the body also mentioned that any trader who owns an NFT by any means or has gotten rid of any digital assets listed for sale would need to declare such sales as income.

The tax agency also crafted the document and opened a space for any new asset class that might make its way into the market in the coming years. The agency claimed that if a new asset enters the crypto sector, it will be subjected to the tax rules that others follow.

More countries are taxing crypto

The body also refused to group the digital art under collectibles, which means they won’t be categorized alongside other collectibles like antiques. The holders of these collectibles will pay a different kind of tax. In comparison, holders of collectibles are mandated to pay a 28% tax on their assets, and other classes, such as crypto and stocks, tax holders depending on the income of their assets. Countries worldwide are now starting to levy taxes on digital assets, removing the loophole that most investors in the sector enjoy.

A typical example is Portugal which used to be a haven for crypto traders. The country has announced a 28% levy on digital assets this month. It is also looking like other platforms will begin to tax NFT holders after Apple announced a 3% levy on sales of NFTs on its platform.

Owotunse Adebayo

Owotunse Adebayo

Adebayo loves to keep tab of exciting projects in the blockchain space. He is a seasoned writer who has written tons of articles about cryptocurrencies and blockchain.

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