WEBVTT NOTE duration:"00:02:28.0140000" NOTE recognizability:0.855 NOTE language:en-us NOTE Confidence: 0.80926734 00:00:00.000 --> 00:00:01.540 You've probably heard something NOTE Confidence: 0.80926734 00:00:01.540 --> 00:00:03.850 about or non fungible tokens are NOTE Confidence: 0.80926734 00:00:03.910 --> 00:00:06.040 unique items that can be traded NOTE Confidence: 0.80926734 00:00:06.040 --> 00:00:07.806 virtually like audio files, ebooks, NOTE Confidence: 0.80926734 00:00:07.806 --> 00:00:09.536 digital artwork and even photos. NOTE Confidence: 0.80926734 00:00:09.540 --> 00:00:12.158 And if you have a cryptocurrency wallet NOTE Confidence: 0.80926734 00:00:12.158 --> 00:00:15.088 you can cash in on your NFT in recent NOTE Confidence: 0.80926734 00:00:15.090 --> 00:00:16.239 weeks. Headlines highlight NOTE Confidence: 0.80926734 00:00:16.239 --> 00:00:17.771 people creating and cashing NOTE Confidence: 0.80926734 00:00:17.771 --> 00:00:19.950 in their NFT for a big payday. NOTE Confidence: 0.80926734 00:00:19.950 --> 00:00:22.032 I just turned 5K into 10K NOTE Confidence: 0.80926734 00:00:22.032 --> 00:00:23.770 by flipping this NFT, a NOTE Confidence: 0.80926734 00:00:23.770 --> 00:00:25.262 former financial advisor explains NOTE Confidence: 0.80926734 00:00:25.262 --> 00:00:28.236 in a skit on Tik T.O.K which has NOTE Confidence: 0.80926734 00:00:28.236 --> 00:00:30.567 more than 266,000 views that if a NOTE Confidence: 0.80926734 00:00:30.567 --> 00:00:32.570 person made a profit from NFTS. NOTE Confidence: 0.80926734 00:00:32.570 --> 00:00:33.870 They should consider setting NOTE Confidence: 0.80926734 00:00:33.870 --> 00:00:35.170 aside money for taxes. NOTE Confidence: 0.8649997 00:00:35.170 --> 00:00:36.700 Wait what? Buying and selling NOTE Confidence: 0.8649997 00:00:36.700 --> 00:00:38.230 Eftps could actually create 2 NOTE Confidence: 0.8649997 00:00:38.290 --> 00:00:40.370 taxable events. So do you have NOTE Confidence: 0.8649997 00:00:40.370 --> 00:00:42.970 to pay taxes if you sold an FT? NOTE Confidence: 0.8649997 00:00:42.970 --> 00:00:44.590 Let's verify our sources are the NOTE Confidence: 0.8649997 00:00:44.590 --> 00:00:46.339 IRS and Amy Miller a certified NOTE Confidence: 0.8649997 00:00:46.339 --> 00:00:48.181 public accountant and a member of NOTE Confidence: 0.8649997 00:00:48.181 --> 00:00:50.010 the American Institute of Certified NOTE Confidence: 0.8649997 00:00:50.010 --> 00:00:51.554 Public Accountants virtual Currency NOTE Confidence: 0.8649997 00:00:51.554 --> 00:00:54.670 Tax Task Force NFTS are one of a kind, NOTE Confidence: 0.8649997 00:00:54.670 --> 00:00:56.656 non fungible assets that are not NOTE Confidence: 0.8649997 00:00:56.656 --> 00:00:57.649 interchangeable because each NOTE Confidence: 0.8649997 00:00:57.649 --> 00:00:58.898 NFT is wholly unique. NOTE Confidence: 0.8649997 00:00:58.900 --> 00:01:00.670 It's not intended to be used NOTE Confidence: 0.8649997 00:01:00.670 --> 00:01:02.580 as a kind of currency. NOTE Confidence: 0.8649997 00:01:02.580 --> 00:01:04.752 Like Bitcoin instead are bought and NOTE Confidence: 0.8649997 00:01:04.752 --> 00:01:06.613 sold as collectibles or investments NOTE Confidence: 0.8649997 00:01:06.613 --> 00:01:08.665 in a 2021 FT market report. NOTE Confidence: 0.8649997 00:01:08.670 --> 00:01:10.214 Chainalysis explains that quote NOTE Confidence: 0.8649997 00:01:10.214 --> 00:01:12.144 NFTS give the holder ownership NOTE Confidence: 0.8649997 00:01:12.144 --> 00:01:14.036 over the data media or object. NOTE Confidence: 0.8649997 00:01:14.040 --> 00:01:15.888 The token is associated with and NOTE Confidence: 0.8649997 00:01:15.888 --> 00:01:17.553 are commonly bought and sold NOTE Confidence: 0.8649997 00:01:17.553 --> 00:01:19.049 on specialized marketplaces UN NOTE Confidence: 0.8649997 00:01:19.049 --> 00:01:20.919 quote when there's a transaction NOTE Confidence: 0.8649997 00:01:20.978 --> 00:01:22.630 involving those digital files, NOTE Confidence: 0.8649997 00:01:22.630 --> 00:01:24.420 it's recorded on the blockchain, NOTE Confidence: 0.8649997 00:01:24.420 --> 00:01:26.568 which is like a virtual paper NOTE Confidence: 0.8649997 00:01:26.568 --> 00:01:28.000 trail for all transactions. NOTE Confidence: 0.8649997 00:01:28.000 --> 00:01:30.816 The IRS has yet to give a definitive NOTE Confidence: 0.8649997 00:01:30.816 --> 00:01:33.009 label to FT on its website. NOTE Confidence: 0.8649997 00:01:33.010 --> 00:01:34.426 The agency explains quote. NOTE Confidence: 0.8649997 00:01:34.426 --> 00:01:35.842 Virtual currency is treated NOTE Confidence: 0.8649997 00:01:35.842 --> 00:01:37.764 as property and general tax NOTE Confidence: 0.8649997 00:01:37.764 --> 00:01:39.300 principles applicable to property. NOTE Confidence: 0.8649997 00:01:39.300 --> 00:01:40.716 Transactions apply to transactions NOTE Confidence: 0.8649997 00:01:40.716 --> 00:01:42.492 using virtual currency, UN quote. NOTE Confidence: 0.8649997 00:01:42.492 --> 00:01:43.560 In other words, NOTE Confidence: 0.8649997 00:01:43.560 --> 00:01:46.038 even though we are strictly digital assets, NOTE Confidence: 0.8649997 00:01:46.040 --> 00:01:47.460 they're still taxed just NOTE Confidence: 0.8649997 00:01:47.460 --> 00:01:48.880 like physical assets in NOTE Confidence: 0.8910392 00:01:48.880 --> 00:01:50.300 your in the business, NOTE Confidence: 0.8910392 00:01:50.300 --> 00:01:52.430 and that is your small business. NOTE Confidence: 0.8910392 00:01:52.430 --> 00:01:54.876 To make enough Tees, yes, your taxable. NOTE Confidence: 0.8910392 00:01:54.876 --> 00:01:58.355 The IRS has a question at the top of the NOTE Confidence: 0.8910392 00:01:58.355 --> 00:02:00.945 Form 1040 asking at anytime during 2021. NOTE Confidence: 0.8910392 00:02:00.950 --> 00:02:02.755 Did you receive cell exchange NOTE Confidence: 0.8910392 00:02:02.755 --> 00:02:04.560 or otherwise dispose of any? NOTE Confidence: 0.8910392 00:02:04.560 --> 00:02:06.335 Financial interest in any virtual NOTE Confidence: 0.8910392 00:02:06.335 --> 00:02:08.110 currency and taxpayers are required NOTE Confidence: 0.8910392 00:02:08.165 --> 00:02:10.069 to answer yes or no to that question, NOTE Confidence: 0.8689289 00:02:10.070 --> 00:02:11.294 so we can verify. NOTE Confidence: 0.8689289 00:02:11.294 --> 00:02:13.130 Yes, you have to pay taxes. NOTE Confidence: 0.8689289 00:02:13.130 --> 00:02:15.069 If you sold an FT and made NOTE Confidence: 0.8689289 00:02:15.069 --> 00:02:16.799 a profit with your verify, NOTE Confidence: 0.8689289 00:02:16.800 --> 00:02:18.330 I'm ready on day till.