Art is a tax deduction in the US. Say you have a tax liability of $10k, you buy $10k of Art and you can claim the value (not including sales cost) as a deduction.
Then after the tax year, you sell it to the next guy. As long as you sell for the same price, you pay that much less tax (that is, about 25% of the value less in tax).
Well an NFT is just Art without the hassle or expense of insurance or storage. It could be used as a tax deduction.
When the IRS ruled it was no longer eligible, the NFT market collapsed.
It’s a form of tax avoidance.
Art is a tax deduction in the US. Say you have a tax liability of $10k, you buy $10k of Art and you can claim the value (not including sales cost) as a deduction.
Then after the tax year, you sell it to the next guy. As long as you sell for the same price, you pay that much less tax (that is, about 25% of the value less in tax).
Well an NFT is just Art without the hassle or expense of insurance or storage. It could be used as a tax deduction.
When the IRS ruled it was no longer eligible, the NFT market collapsed.