Interesting NFT Tax Issue

From a recent "Wealth Matters" column in the NYT:

"One issue that has not caught up with the technology is how NFTs will be taxed. Cryptocurrency is taxed at the capital gains rate, and many experts say they believe that NFTs will be considered collectibles, which are taxed at a 28 percent rate. But the tax issue gets more complicated because many NFTs are bought using cryptocurrency. So any transaction would be considered a realization of the gains in that cryptocurrency.

"''It’s a perfect example of where the law hasn’t caught up with the technology,' said Jere Doyle, senior vice president at BNY Mellon Wealth Management. 'Collectible in code sections says any work of art, rug or antique, metal or antique, or any other tangible personal property. Would any work of art be tangible or digital? Does tangible modify a work of art? We don’t know.'"

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