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Someone minted 1 million Neeraj Agrawal (cryptocurrency advocate* who's big on Twitter) NFTs, sent him 999,999 without his consent, and kept the other to sell.
by sf_rob 5y ago
Someone minted 1 million Neeraj Agrawal (cryptocurrency advocate* who's big on Twitter) NFTs, sent him 999,999 without his consent, and kept the other to sell. Which leads to the interesting question, should Neeraj report the 999,999 as a gift receipt if they have some value, and is he in a bad position that the tax value of the gift is large due to the price being determined by the 1 that was sold?
(I don't understand NFTs so I may be incorrect on details).
*edited, said “VC” prior
- chabes 5y agoNeeraj isn’t a VC. He works for coin center, a advocacy/lobbying org.
- throwaway_isms 5y agoIf the 999,999 were worthless at the time they were initially transferred, then there is no taxable event. Now if they become worth $1 each and he sells them at that price then it is a taxable event. The threshold may have changed with respect to gifts but if the coins were worth $1 at the time they were initially transferred there may be a taxable event, I think it used to be $50k was tax free.
- suifbwish 5y agoPeople aren’t in control of who sends their wallets coins and unless there is a notification system setup it seems like the tax responsibility would arise when they attempt to use the coin. Also if everyone were responsible for every trade that occurs within their wallets, and have say with one trade they make a large profit and owe the government taxes, then in the next trade they lose the profit, are they responsible for loss of government property? Also what about an auto trading bot that is run by a neural network that makes trading decisions based off key words in the news, if it is responsible for losing the would be taxes, who is to blame? It’s creator? The philosophical questions from this stuff pick apart out we normally think about this.