43: NFTs And The Tax Implications Of Using An NFT Marketplace

The evolution of cryptocurrency and the blockchains that power it has taken yet another step forward with the creation of NFTs or non-fungible tokens. NFTs have been in the news quite a lot lately, garnering support from some of the biggest names in art, sports, and technology. However, with NFT marketplaces come potential tax liabilities.

NFTs aren’t just for art anymore

On this episode of the Taxgirl podcast, Kelly is joined by Ben Weiss, the CEO of Coinflip -- the world’s leading Bitcoin ATM operator -- to talk about NFTs. Kelly and Ben discuss NFT meaning, how big brands like Nike are beginning to use NFTs, the anonymity of a blockchain, regulations and tax liabilities users could face, and the future of NFTs.

Listen to Kelly and Ben talk about NFTs:

• What is an NFT
• NFT meaning
• Establishing a value for an NFT
• Mark Cuban’s role with NFTs
• Nike using the blockchain to verify authentic sneakers
• Tennis player Oleksandra Olinynykova selling her arm as an NFT
• Residual payments on NFTs
• Automated NFT marketplace tracking for taxes
• Tax considerations of using an NFT marketplace
• The anonymity of the blockchain
• The percentage of cryptocurrency tied to elicit activity
• Regulations businesses like Coinflip face
• The future of NFTs

More about Kelly Phillips Erb:

Kelly is the creator and host of the new Taxgirl podcast series. Kelly is a practicing tax attorney with considerable experience and knowledge. She works with taxpayers like you every day. One of the things that she does is help folks out of tax jams, and hopefully, keep others from getting into them.

Links mentioned:

Kelly’s Website – Taxgirl

Coinflip - Website

Ben Weiss - Instagram

Ben Weiss - Twitter