IRS issues new tax guidelines for NFTs and stablecoins

The United States IRS has announced a new taxation system covering NFTs as part of its latest 2022 guidelines. Traders and investors in the crypto space dealing with NFTs can breathe a sigh of relief as to how which they would be taxed on their assets. The body said the new 2022 crypto guidelines would tax both NFTs and stablecoins in the same category as digital assets. This latest directive is an update from last year, which classified stablecoins and cryptos as “virtual assets.”

IRS Groups NFTs and Stablecoins Under Crypto Tax

The IRS has said that any US resident involved in assets would be liable to pay capital gains tax if they sell a digital asset by any means. This includes donations, sale and exchange of assets. In addition to this, the body also mentioned that any trader who owns an NFT by any means or has disposed of any digital asset offered for sale should report those sales as income.

The tax agency has also crafted the document and opened up space for any new asset class that may make their way to the market in the years to come. The agency claimed that if a new asset enters the crypto sector, it will be subject to the tax rules that others follow.

More and more countries are taxing crypto

The body also declined to group digital art under collectibles, meaning they won’t be categorized alongside other collectibles like antiques. Holders of these collectibles will pay another type of tax. By comparison, holders of collectibles are required to pay a 28% tax on their assets, and other classes, such as crypto and stocks, tax holders based on the income from their assets. Countries around the world are now starting to levy taxes on digital assets, closing the loophole enjoyed by most investors in the sector.

A typical example is Portugal which was once a haven for crypto traders. The country this month announced a 28% tax on digital assets. It also looks like other platforms will start taxing NFT holders after Apple announced a 3% levy on NFT sales on its platform.

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