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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Tax Preparer

Date & Time
  • event Date

    Thursday, August 17, 2023

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    110 minutes

Credit Information

  • BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.

  • BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).

$197.00
CPE
ALL

This webinar will address the latest guidance for reporting and calculating the tax consequences of acquiring and disposing of non-fungible tokens (NFTs). Our dynamic speaker will provide examples of the tax treatment for creators, sellers, and purchasers of these popular assets using common scenarios and under unique circumstances, including donating NFTs.

Faculty

Andrea S. Kramer
Founding Member
ASKramer Law

Ms. Kramer is widely regarded as one of the foremost authorities on the regulatory, tax, commercial, and governance matters that arise for individuals and businesses in trading environments. She represents multinational corporations, financial service firms, exchanges and trading platforms, hedge funds, energy companies, insurance companies, family offices, and businesses in all stages of their life-cycle. These clients are typically dealing with securities, commodities, derivatives, digital assets, energy (production and distribution), renewables, ESG (environmental, social, and governance) matters, nontraditional assets, and emerging asset classes of all types.

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Description

Determining the tax treatment of non-fungible tokens (NFTs) is complex. There are many levels of taxation, and the consequences vary depending on whether an NFT is sold or exchanged and how it is held--perhaps as a collectible or inventory. The problem is exacerbated by the lack of IRS guidance. Recently released, Notice 2023-27 states that NFTs can be treated as collectibles and consequently subject to the higher 28 percent tax rate. The notice provides a "look-through analysis" that can be impractical in a digital world.

The sale of an NFT could be taxed at ordinary or capital gains rates. The sale generally generates ordinary income for a creator. In addition to calculating the gain or loss on the disposition, creators could sell an NFT using the installment method or sell the property with or without its intellectual property rights creating further tax issues.

In addition to the nuances of the acquisition and disposition of NFTs, there are unique circumstances that create other tax problems. A seller could retain royalty rights, or a taxpayer might donate an NFT to a charity. Tax professionals working with individual taxpayers must effectively report the buying and selling of NFTs considering the limited guidance available.

Listen as our digital tax expert explains the proper treatment of NFTs for taxpayers acquiring and disposing of these assets and other unique taxable events.

Outline

  1. Non-fungible tokens (NFTs): an introduction
  2. Defining NFTs
  3. Reviewing the limited guidance available
  4. Taxation of NFTs
    • Creator
    • Seller
    • Purchaser
  5. Other tax scenarios
    • Donating NFTs
    • Other unique circumstances

Benefits

Our speaker will cover these and other critical issues:

  • Determining whether an NFT is taxed at ordinary or capital gains rates
  • IRS guidance regarding the taxation of NFTs
  • Calculating the tax benefits of a donation of an NFT to a charity
  • How an NFT creator is taxed
  • Taxing NFTs as collectibles under Notice 2023-27

NASBA Details

Learning Objectives

After completing this course, you will be able to:

  • Determine how a creator of an NFT is taxed
  • Identify current IRS guidance applicable to the taxation of NFTs
  • Decide the tax consequences of donating an NFT
  • Ascertain when an NFT is taxed at ordinary vs. capital gains rates

  • Field of Study: Taxes
  • Level of Knowledge: Intermediate
  • Advance Preparation: None
  • Teaching Method: Seminar/Lecture
  • Delivery Method: Group-Internet (via computer)
  • Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
  • Prerequisite: Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of individual income taxation, including itemized deductions, individual income tax credits, net operating loss limitations including carrybacks and carryforwards.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).