What is a Fungible Token (NFT) and How is a NFT Taxed?
By Anthony Diosdi The popularity of Non Fungible Tokens (“NFTs) has spiked in the past couple of months. NFTs were just featured on an episode of Saturday Night Live. Recently, the New York Times published an article entitled “Why Did Someone Pay $560,000 for a Picture of My Column?” The article discusses how a reporter wrote a column about NFTs, turned the column itself into a NFT, and put it up for auction. The winning bid for the column was about $560,000. So what is an NFT? To understand what an NFT is, you must understand the basics about digital currencies. Digital current is money. There are a number of different digital currencies. They include bitcoin, ethereum, and dogecoin. Digital currencies are also called cryptocurrency. This is because cryptocurrency can…