Gusto guides

How To Talk to Your Client About NFTs

Misinformation abounds and many people are getting their NFT tax advice from surprising places, such as from non-accountants on Twitter. You can help. Get up to speed on the basics—what NFTs are, the tax implications, and good questions to ask your clients. Inside:

Use cases for NFTs
The tax implications
Whether the IRS sees them as a collectible or a security
How to start a conversation with clients

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How are NFTs sold? Purchased? Taxed?

They’re surprisingly easy to create, but beneath that simplicity, there’s a lot of complexity. Minting, listing, purchasing, and using cryptocurrencies can all be taxable events, and unlike most retailers, these platforms don’t withhold tax. This guide will walk you through some of the most common scenarios.