Agency Guidance Coming on Treatment of NFTs as Collectibles (2)

The Treasury Department and IRS plan to issue guidance on the treatment of certain non-fungible tokens as collectibles.

The IRS released Notice 2023-27 stating that the agency wants to issue guidance on whether an NFT qualifies as a collectible under Section 408(m). The agency said the treatment is “also relevant” for other areas of the tax code, like determining long-term capital gains for these items.

Jordan Bass, CPA, tax attorney and founder of Taxing Cryptocurrency, said “it’s a good thing” the IRS is going to issue guidance on NFTs because the market is expanding rapidly.

“This isn’t something ...