IRS Plans to Tax Certain NFTs as Collectibles, Resulting in Higher Taxes for Wealthy Owners

 

The IRS plans to tax certain NFTs as collectibles, resulting in higher tax rates for wealthy owners compared to other assets like stocks or real estate. The federal government imposes a maximum tax rate of 28% on collectibles held for over a year, compared to a maximum rate of 20% on other investments. The IRS intends to issue guidance on the treatment of specific NFTs as collectibles and has requested feedback from the public. Comments are due by June 19.