If you are an artist or creator minting NFTs, you will be subject to income taxes on the revenue from the sale of your NFT(s). If you are selling NFTs as a trade or business, you can deduct related business expenses. You will also recognize ordinary income through any revenue you earn through secondary sales.
Are Top Shot packs taxed?
Generally, dealers are taxed at ordinary income tax rates on their net taxable income. … Top Shot Moments may or may not be considered art, but the $69 million piece sold at auction may potentially be deemed a collectible for U.S. federal income tax purposes.
Do you have to be 18 for NBA Topshot?
NBA Top Shot is a platform for collectors 18 and older. Minors are not allowed to own an account on NBA Top Shot. If you are under 18, we cannot offer you an NBA Top Shot account.
Do you have to play pay taxes?
Paying your taxes is considered a civic duty, although doing so is also a requirement of the law. If you do not pay your taxes, the government agency that oversees taxes — the Internal Revenue Service or IRS — will require you to pay your taxes or else face penalties, such as fines or going to jail.
Do you pay tax on NBA Topshot?
In most cases, yes, NFTs (non-fungible tokens) are subject to the same tax laws as fungible cryptocurrencies. … And if you invest in NFTs, any profits earned through sales or trades will be taxed as property and subject to the capital gains tax.
How do you buy NBA Top Shot packs?
1. Be on the NBA Top Shot list. The first thing to do is sign up to be notified when new registrants can register for an account here. Once you have an account, you can log in via the NBA Top Shot website, you can sign up to be notified via email when packs become available to buy.
Is NBA Top Shot legal?
The gravamen of the complaint is that NBA Top Shot Moments — which are a type of NFT — are securities, which the defendants “promoted, offered and sold” in violation of federal securities laws.
Can I make multiple NBA Topshot accounts?
As of February 2, 2021, owning multiple NBA Top Shot accounts is no longer allowed. When users have more than one account, it creates an uneven playing field within the community, and significantly increases the time it takes to process withdrawal requests.
Can I buy NBA Top Shot with a credit card?
You can buy and sell on NBA Top Shot using a variety of payment methods, including both credit card and cryptocurrency options: Purchase packs, Moments, and Dapper Balance with both credit and debit cards (Visa, Mastercard) during checkout. Purchase Dapper Balance, packs, and Moments with cryptocurrencies.
How much do you take home if you win a million dollars?
If the jackpot remains at $515 million for Friday’s drawing, the cash option is $346.3 million. The federal government will immediately take $83,112,000 from that cash option (24%), leaving you $263,188,000. Remember, the rest of your federal tax bill comes next year and will cost you another $44,983,072.
How much can a single person make a year without paying taxes?
Single: If you are single and under the age of 65, the minimum amount of annual gross income you can make that requires filing a tax return is $12,200. If you’re 65 or older and plan on filing single, that minimum goes up to $13,850.