Law Commons^™

The Mysteries Of Nft Taxation And The Problem Of Crypto Asset Tax Evasion, Amy Q. Nguyen

SMU Science and Technology Law Review

Cryptocurrencies have long captured the attention of the financial world, revolutionizing how the world does business by providing virtually costless transactions. More recently, however, a new digital token has taken its place on the world stage. Known as NFTs, non-fungible tokens have allowed for the reinvention of modern finance infrastructure consisting of sophisticated trading and loaning systems for different asset types. Despite cryptocurrencies’ and NFTs’ novelty and popularity, they are not immune to the U.S. Tax Code. The Internal Revenue Service (IRS) has provided guidance on the tax framework of cryptocurrencies, but the taxation of NFTs is still relatively unclear, …