IRS Requests Public Input on How to Classify NFTs as Collectibles
The Internal Revenue Service (IRS) has recently announced that it is seeking public input on how to classify non-fungible tokens (NFTs) as collectibles for tax purposes. This move comes as the popularity of NFTs has exploded in the past year, with sales reaching billions of dollars and many individuals and businesses investing in these digital assets.NFTs are unique digital assets that are stored on a blockchain, which is a decentralized digital ledger that records transactions. They can represent anything from artwork to music to video game items, and they are