NFT: Do you have to pay taxes for NFTs? – Marca English

If you are an artist or an NFT investor or artist, you’ll need to check our information.

What began as a blockchain platform years ago, now it’s the way art is trading.

The exponential growth of NFTs in recent years shows that this digital version of stamps, art, or any other tangible or intangible product to which a number of users end up conferring a value has become the new normal.

What are non-expendable property?

Before understanding what NFTs are, it is important to know the difference between fungible goods and non-fungible goods. The former can be exchanged, having a value based on their number, measure or weight, such as a 10-dollar bill.

In the case of non-fungible goods, they are not substitutable, as is a work of art, since it is not consumed when used, nor is it equivalent to another, and therefore cannot be exchanged or substituted.

What are NFTs?

NFT stands for Non-Fungible Token, units of value that are assigned to a business model, such as cryptocurrencies, although the NFT is a non – fungible good, while a bitcoin is a fungible cryptocurrency.

An NFT is a digital certificate of ownership rights built on the blockchain, typically Ethereum. They have a unique value and cannot be duplicated.

Are NFTs taxed?

The vast majority of NFTs are subject to some tax laws. When selling NFTs, the artists need to report the income acquired on their tax returns.

If you are an investor, sales or trades are taxed as property.

-Selling an NFT for cryptocurrency

-Purchasing an NFT with a fungible cryptocurrency

-Trading an NFT for another NFT

How are NFTs taxed?


-Profits are considered income and are taxed as ordinary income tax rates that go from 10% to 37%.

-Your total income made by NFTs is subjected to self-employment taxes with a rate of 15.3%


-NFTs could be taxed as property. You could pay from 0% to 20% according to your income.

-However, NFTs could be treated as stamps, antiques, or trading cards. Those are taxed at 28%.

It all depends if you hold your asset for over one year.

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