The IRS in the coming months will have to decide if your Bored Ape non-fungible token is a work of art or a membership card to an exclusive “yacht club.”
These kinds of decisions made by a federal agency are causing concern among tax practitioners who say determining the use of an NFT is often subjective and could expose their clients to a 28% capital gains tax.
The IRS released Notice 2023-27 in March, announcing plans to issue guidance about the treatment of NFTs as collectibles under Section 408(m) of the tax code.
The notice lays out how the agency ...
Learn more about Bloomberg Tax or Log In to keep reading:
Learn About Bloomberg Tax
From research to software to news, find what you need to stay ahead.
Already a subscriber?
Log in to keep reading or access research tools.