The United States Internal Revenue Service (IRS) has issued new tax guidelines for non-fungible tokens and stablecoins. The reviewed guideline is an update from last year’s guide, which categorized stablecoins and crypto under ‘virtual assets.’
NFTs & Stablecoins To Fall Under The Same Tax Class
In a reviewed IRS tax guide 2022, the Internal Revenue Service has given NFT investors clarity about how it will tax their assets. All digital assets, including stablecoins, non-fungible tokens, and cryptocurrencies, will fall under the same tax rules.
According to the taxman, all United States residents, who have “disposed of any digital asset in 2022” through a sale, exchange, gift, or transfer will now have to report and pay capital gains tax on the action.
Furthermore, the new guidelines will require residents who might have received NFTs as compensation for services or disposed of any digital asset they held for sale to declare these NFTs as capital income.
The IRS has clarified that if a particular asset features characteristics relating to digital assets, it will treat as a digital asset for federal income tax purposes. The IRS has deemed IRS to categorize NFTs as “collectibles,” such as collectible art, antiques, or gems, which will attract different tax rates compared to stocks or bonds.
As per the tax guide, collectibles will attract a tax rate of 28% compared to other assets such as stocks, bonds, and crypto, which will attract tax rates of 0%, 15%, and 20%, respectively, depending on seller income.
Tax Authorities Shift Their Target To Crypto
Different countries worldwide have recently started imposing taxes on digital assets, removing the bug most investors in the sector have enjoyed for years. Portugal is a recent perfect example, which was once seen as a safe harbor for crypto investors. Last month, the country introduced a 28% tax on crypto gains made within the past year.
The recent spree on hunting NFTs investment gains has also attracted other platforms offering NFT services to impose some policies to slash these gains. In this case, Apple recently decided to enable in-app NFTs sales on its platform, aiming to drain 30% of customary commission fees from those transactions.
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