Digital artist FEWOCiOUS auctions five NFT works of art, along with five physical paintings and drawings at Christie’s on June 28, 2021 in New York.
Noam Galai | Getty Images Entertainment | Getty Images
The IRS said it plans to tax some non-fungible tokens, or NFTs, as collectibles akin to art or gems — an approach that would tax profits for wealthy owners at a higher rate relative to assets such as stocks, real estate and cryptocurrency.
The federal government levies taxes on collectibles held for more than a year at a top rate of 28%. It generally levies a top 20% rate on other investments.
In a notice on Monday, the IRS said it intends to issue guidance regarding the treatment of certain NFTs as collectibles.
NFTs are essentially one-of-a-kind digital assets, which can extend beyond…