Taxation of NFTs.

If the IRS deems an NFT to be a "collectible" as defined in the tax law, the sale could be subject to the higher 28% capital gain rate on the sale yof a collectible. The difference in tax treatment would be even more significant if the sale of the NFT results in>a loss, which, given the volatility of the NFT market, may be a common experience. It is often the case that new products, services or other income streams develop in the U.S. economy before Congress and the Internal Revenue Service figure out if existing tax provisions apply or if a new law or guidance is necessary to let taxpayers know the proper treatment of these new developments. [Extracted from the article]

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