nftremind

We all know the old saying about “the only two certainties in life”. So if you’re frequently buying and selling NFTs, you’re probably wondering about your tax responsibilities. Let’s talk NFTs and taxes.

Much like cryptocurrencies, NFTs themselves don’t have tax laws defining how NFT investors should tax their digital assets. This will vary depending on the area you are in. In some countries, NFTs are taxed the same way cryptocurrencies or fungible digital assets are taxed.

However, some experts define NFTs as “collectibles,” with higher tax percentages than income and capital gains taxes. In the U.S., the IRS defines tangible collectibles as things such as art, gems, antiques, coins, and stamps. These collectibles are considered to have long-term capital gains subject to the top federal tax rate, upwards of 28%. And since the proceeds from NFTs are also considered investment income, NFT investors may also pay a surtax of 3.8%, making the total tax percentage upwards of 31.8%!

Regulations on taxes in the NFT space are being worked on and determined on a daily basis which can leave many investors confused as to how much they owe. When trading NFTs, always ensure you leave some profit aside for tax purposes. Make sure to DYOR and research the most up-to-date tax info for your area, and consult a tax professional.

How does your country tax your NFT proceeds? We want to hear from you!



*not financial advice*

Opensea, the “world's first digital marketplace for crypto collectibles and non-fungible tokens” has had a monopoly on the marketplace since its inception, but how long can they ward off competitors looking for a shot at the title, and do they really have the best interests of the Web3 community in mind? Let’s get into it:

Essentially, Opensea is a centralized service catering to a decentralized community, which itself poses a slew of potential issues for people trading on its platform. Think of Opensea as the Ebay for digital collectibles, it’s a centralized platform built on top of a decentralized blockchain. Now don’t get me wrong, they have helped onboard numerous people into Web3, given many artists worldwide a voice and a means express themselves, and helped change the lives of many individuals monetarily. But are those things worth giving up control and allowing, in its essence, a web2 minded company to have power over the Web3 community? Absolutely not!

To be a decentralized community you must accept the good and the bad that comes with it. Opensea regularly removes accounts, most recently in Venezuela, Iran, Russia, and any country that they say has a history of funding terrorism or violating human rights, essentially saying that every person in these countries are criminals - bu****it! Many in disenfranchised countries use crypto and NFTs to improve their situation, so denying them this right is not only unjust but makes Opensea no better than the countries they are restricting!

There have also been many valuable assets stolen via exploits in Opensea’s platform or plain human negligence. While it must feel like a kick in the teeth to have this happen, the ability for Opensea to freeze assets or remove collections no matter the circumstances is the complete antithesis of what the Web3 community claims to stand for.

If we want a truly decentralized community, we need to start accepting the consequences of our decisions, good or bad. There are a few companies trying to take the throne from Opensea as we speak but do anyone of them truly meet our needs as a community? Which marketplace will prevail as the peoples champ

opinion ✍️