Digital asset owners are concerned as the IRS contemplates the notion of treating NFTs as taxable collectibles.
The IRS has released proposed rules for the taxation of NFT assets, which will treat NFTs as collectibles such as fine wine, art or stamps. The IRS has requested public feedback on the proposed rules, with NFTs set to be taxed according to the underlying assets they denote digital ownership of.
For instance, an NFT purchased on the Pixelplex Opalverse marketplace would be taxed as if the purchaser had directly bought the underlying Australian opal. However, some have raised concerns that the new rules could leave NFT investors in older age brackets exposed to significant taxation in retirement accounts, since collectibles generally do not have as advantageous capital-gains tax treatment as other capital assets. The public comment period is open until June 19, with finalization of the NFT tax proposals expected after that.