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NFT Owners Will Have To Start Paying Taxes On Their Investments

NFT Owners Will Have To Start Paying Taxes On Their Investments

Oh no... anyway

NFT regulation is upon us - and by “us” I absolutely do not mean me. Please keep these NFT things the hell away from me. Anyway, as TheGamer reports, cryptocurrency - which underpins the whole business of NFTs - is to be regulated in the US, with crypto purchases of ten grand or more subject to IRS declaration. And the IRS will basically treat these entirely virtual assets as cash, rather than untouchable follies built on a foundation of pure hubris.

This news comes mere days after EA - y’know, the FIFA people - announced that NFTs were the future of the gaming industry. And we’re covering it on the same day we also covered streamer Amouranth announced she’d be selling an NFT of herself. No effing thanks, to both, actually.

This new development comes courtesy of an Infrastructure Bill worth 1.2 trillion dollars and supported by both parties in the House of Representatives, which President Joe Biden is set to sign off on. The Bill covers climate change and child care matters, assigns budget to the modernisation of traffic measures and to protecting the US coastline against floods, and will direct funds towards green-energy transport including electric cars. All sorts of good stuff, important stuff. And, also, a new tax amendment has meant that crypto brokers will probably have to start paying tax on their NFT investments, and revealing details of previously secretive deals.

Specifically, an amendment to tax code section 6050I has sent the crypto scene into a flurry of call-your-senator activity. This section says that transactions of $10,000 or more must see personal and social security details of the parties involved provided to the government. Not doing so is a felony - and with cryptocurrency deals of that value and above now looking like they’ll be subject to 6050I regulation, that’s got folk in the NFT space upset.

I say “folk”... have you met anyone who actually cares about NFTs? Who thinks positively about them? Or has even traded in them? I’ve not, and I know at least some people. Anyway, the Treasury Department may yet specify exactly how all things NFT et al fit into this new bill, and maybe this will all blow over - but right now, there’s panic in the crypto broker ranks. Good?

Featured Image Credit: Bored Ape Yacht Club