IRS Makes Language Change that Includes NFTs
One of the challenges that come with novel assets like NFTs is how exactly taxes are to be paid on them. After all, most existing tax codes were created long before NFTs were even in existence. As such, the treatment of NFTs under tax codes is a question that lingers all over the industry.
Luckily, the U.S. Internal Revenue Service (IRS) has given more clarity to this with its updated tax codes.
The new draft that the IRS released offers some clarification for those who file with form 1040. More specifically, the terminology used for one of the asset classes has been changed from “virtual currency” to “digital assets.” Not only has this name been changed but the document explicitly mentions NFTs and notes that they are included.
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