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The US Treasury Department and the Internal Revenue Service have announced that they are considering taxing NFTs as digital collectibles. According to a number of media reports, non-fungible tokens will therefore be taxed on the same basis as other collectibles, such as stamps, works of art and premium wines.
Representatives of the US Internal Revenue Service said that they will conduct a so-called end-to-end analysis. Its primary purpose is to determine whether an NFT falls within the definition of levy under current US tax law. It was emphasized that gemstones are recognized as collectibles under section 408(m). This implies that a non-fungible token certifying a user’s ownership of a virtual gem should also be considered in this context.
The Tax Administration noted that by June 19, 2023, they plan to collect public feedback on this issue. At the same time, it was emphasized that the department will treat all NFTs in the same way as their underlying asset, regardless of whether they are considered a work of art or a gem.
In light of these developments, daily trading volume in the global NFT market decreased by 0.77% to $93 million, while total sales decreased by 24% over the same period. At the moment, the total capitalization of the segment of non-fungible tokens is estimated at $600 million.
Earlier, the editors of Crypto.ru informed: the board of Sony Interactive Entertainment Corporation has formed an application for a patent on NFT. Representatives of the company emphasized that this is necessary for the modernization of this technology in the production of games.
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