Skip to content
Tax Highlighter

Cryptocurrency vs. NFTs From a Tax Perspective

Cryptocurrency and nonfungible tokens (NFTs) are far from interchangeable from a tax perspective. A lack of IRS guidance has left tax experts to speculate on the nuances of how various digital assets may be treated. NFTs are cryptographic tokens that exist on a blockchain. They can represent real world items, such as real estate or artwork. NFTs haven’t been formally defined by the IRS. Some cryptocurrencies, like Bitcoin, are considered convertible if there’s an equivalence to a real currency’s value. Because NFTs feature unique identification codes, they can’t be traded or exchanged at equivalency. Contact us with questions regarding the tax reporting requirements of cryptocurrencies and how our team of tax experts can help.

Posted March 24, 2022

 


 

Looking for more?

We post daily tax highlighters to help light the path forward for your business or organization

Find Resources

 

Looking for more?

Find more insights & resources

Discover More