Client bought a NFT (non fungible token) last year for $15,000. The NFT was a digital piece of artwork. Sold it this year for over $250,000. We're doing some tax planning. Any chance this would be taxed as a collectible versus regular capital gains?
Prop Reg 1.408-10(b) lists the items that are collectibles. 1.408-10(b)(8) covers "Any other tangible personal property which the Commissioner determines is a "collectible" for purposes of this section." Does the word "Other" make a difference to the seven preceding items that, of course, include works of art?
Aye, that was my thought, poorly expressed. Here in NC, for the purpose of business personal property taxes, each county taxes most computer software, no matter how delivered. Hardly precedent, but it does make one think.
22-Sep-2021 11:55am
