Taxation of Non-fungible Tokens (NFTs)
Author: Allison McLeod
| CPE Credit: |
2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC |
Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2025 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card
Non-fungible Tokens (NFTs), unique, identifiable digital assets based on blockchain technologies, have become a fast-growing industry. This course will provide a background on how NFTs came into the mainstream marketplace. These materials will assist the practitioner to understand the tax implications of the creation, purchase, and sale of these assets.
Publication Date: October 2022
Designed For
Corporate tax and finance executives, directors, managers and staff, CPAs, Enrolled Agents, accountants, attorneys and business/financial advisors who work with and advise individuals or businesses that use or invest in cryptocurrency. All in-house and public practice professionals involved with tax compliance and planning will benefit from this timely and insightful seminar.
Topics Covered
- Background of Non-Fungible Tokens (NFTs)
- Differences between NFTs and Cryptocurrency
- Tax Implications of NFT Transactions
- Recent Legislation
Learning Objectives
- Describe NFTs and describe how they are created
- Recognize how to develop a working knowledge of how NFTs are recorded and transferred
- Identify what type of transaction involving an NFT creates a taxable event
- Recognize how to identify how NFTs are classified
- Identify the current legislative environment and actions taken to regulate NFTs
- Recognize and apply current enforcement actions employed by the IRS
- Identify what is not an example of an NFT
- Recognize what the value of an NFT is derived from
- Identify how many standards Ethereum uses for the development of NFTs
- Identify another Ethereum-based platform which also functions as a peer-to-peer network for trading a curated selection of artists and brands
- Identify how any gain on the sale of self-created NFTs are taxed as
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
