Abstract

The objective of this paper is to provide an insight into the applicability of taxation regarding non-fungible tokens, known as NFTs and the issues regarding it from the United States perspective. Since the advent of Cryptocurrencies, they have attracted the interest of the financial world as they have revolutionised the economy with transactions that are virtually costless. However, NFTs have lately entered the global market, which has made it possible to redesign the modern financial infrastructure. Due to the continued ambiguity surrounding NFT taxation laws, taxpayers must depend primarily upon the existing cryptocurrency tax framework to resolve NFT taxation. However, the cryptocurrency framework does not completely address all problems pertaining to NFT taxation. Even though cryptocurrencies have generated a lot of interest and popularity among NFT investors, they have also caught the attention and concern of tax authorities. With the rapid growth of the digital era and its expanding influence on the financial world, it is vital to establish a solid set of legislation to regulate NFT. The qualitative nature of the study primarily relies on the I.R.C code, along with shedding light on various policies adopted by the I.R.S on the matter.

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