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.

Do you own the rights to NBA Top Shot?

Even though the NBA’s terms say “You own the NFT” that’s not exactly true. You don’t own the underlying copyright of the highlight; the NBA does. That means you can’t use the images to create merchandise. You can’t “commercialize any elements” of the NFT without the “prior written consent” of the NBA.

Does NBA Top Shot report to IRS?

Reporting Your NFT Taxes

Gains and losses from your capital assets (including your NFT’s) get reported on IRS Form 8949 and then included with Schedule D. You can learn how to fill out Form 8949 here.

Is NBA Top Shot risky?

Top Shot is risky, too, because the price of the highlights could plummet at any time if people decide they are no longer interested. One warning sign: Top Shot’s sales last month, $82 million, were down from $208 million in March and $224 million in February, according to CryptoSlam, an NFT tracker.

THIS IS INTERESTING:  What brands do basketball players wear?

Do you have to be 18 for NBA Top Shot?

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 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.

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.

Is NFTs taxable?

NFT investors are subject to capital gains tax

Generally, most people fall into this category. For NFT investors, taxes are similar to those for cryptocurrency trading. NFTs are often purchased using cryptocurrencies like ether.

How often are NBA Top Shot drops?

NBA Playoff Packs Release 2. Every Moment matters. Especially this time of year.

What does NBA Top Shot minted mean?

NBA Top Shot is the collectable of the moment in the basketball world, and many think it has a bright future as an asset as much as a piece of sports memorabilia. … It’s basically a digital trading card of NBA highlights, and people are really excited about them.

THIS IS INTERESTING:  Will NBA 2K21 Next Gen be on sale for Black Friday?
Playing basketball