How the Sale of an NFT May Trigger a Painful Tax Surprise for Some Investors
By Anthony Diosdi The popularity of Non Fungible Tokes (“NFTs”) has become popular in the past year. Just over a year ago, the New York Times published an article entitled “Why Did Someone Pay $560,000 for a Picture of My Column” and sold the article as an NFL. So what is an NFT?The concept of an NFT is to marry the world of digital assets with the security of cryptocurrency. An NFT is a digital asset with a certification of authenticity which is protected by copyright law. When an investor purchases a minted NFT, the investor is acquiring a hacker-resistant, public proof of ownership of the digital asset. Now since we know a little about NFTs, it’s time for us to discuss how they are taxed. There are a number…