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Couldn't one declare the NFTs worthless and still claim the loss?[1] This seems more like a way for the creators of this site (Full Name, Full Name, and Full Na
by __derek__ 4y ago
Couldn't one declare the NFTs worthless and still claim the loss?[1] This seems more like a way for the creators of this site (Full Name, Full Name, and Full Name)[2] to scavenge a bunch of NFTs on the cheap. Not that there's anything wrong with that, necessarily.
[1]: https://www.irs.gov/instructions/i8949#en_US_2022_publink1000285286 https://www.irs.gov/instructions/i8949#en_US_2022_publink100...
[2]: https://www.unsellablenfts.com/about-us https://www.unsellablenfts.com/about-us
- paulkrush 4y agoYou can't claim a loss on crypto if you lose the password or get hacked. Is declaring the crypto worthless different?
- __derek__ 4y agoI honestly don't know! From the IRS memo[1] linked in your other comment, the fact that "Cryptocurrency B continued to be traded on at least one cryptocurrency exchange" is relevant to the conclusion that it still has a value. But unsellable NFTs are by definition not trading anywhere, right? So, ironically, the existence of a service like this might provide a price floor for all NFTs. [1]: https://www.irs.gov/pub/irs-wd/202302011.pdf https://www.irs.gov/pub/irs-wd/202302011.pdf
- paulkrush 4y agoIRS: one cent rule https://www.irs.gov/pub/irs-wd/202302011.pdf https://www.irs.gov/pub/irs-wd/202302011.pdf Tax on lost stolen or hacked crypto: https://koinly.io/blog/tax-on-lost-stolen-or-hacked-crypto/ https://koinly.io/blog/tax-on-lost-stolen-or-hacked-crypto/