What NFT Creators Need to Know for Tax Planning and Filing
For instance: Quinn sold an NFT for 0.2 ether (ETH). At the time, 0.2 ETH was worth $400. Quinn waits one month to swap the ETH for USDC and another month to sell that USDC for U.S. dollars. By the time she converts her USDC for fiat, 0.2 ETH is worth $360, and after fees and market fluctuations, Quinn ends up with $340 in her bank account from that sale. Quinn, however, must claim $400 in revenue when filing her taxes, the revenue from the moment she sold it.