The Internal Revenue Service (IRS), the government agency operating in the field of revenue administration in the USA, changed the concept of “virtual currency” to “digital assets” by expanding its language in the tax draft in order to include NFTs (Non-fungible tokens) in the taxation stage.
The use of broader language was preferred in the tax audit draft published by the IRS for the year 2022. Draft language privatized as “virtual currency” at the taxation stage, NFT It was changed to “digital assets” to include many assets such as
According to the draft guidelines, “digital assets are a digital representation of value recorded in a cryptographically distributed ledger or any similar technology”.
For example, digital assets; It also includes non-fungible tokens (NFTs), cryptocurrencies and dollar-denominated currencies such as stablecoins.
In the US tax return’s instructions last year, the “virtual currency” section expressed a narrower definition of a digital token that “functions as a unit of account, store of value, or medium of exchange.” Final tax instructions not yet released for this reason, before the crypto section becomes official, it is intervened in detail by the lawmakers and tried to be optimized.
According to the final version of the draft, crypto investors should “dispose of any digital asset they hold as capital assets through a sale, exchange, gift or transfer in 2022”. Calculation and reporting within the tax framework they will be obliged.