I am starting an NFT business

Tokenz

Tokenz

Greetings everyone.
First of all I wanted to say thank you for letting me be a part of this trading community. A bit about myself, I am currently running 2 small businesses. I have been trading stocks for a few years, (Long term) and I also have dabbled with trading crypto, but have found long term holding crypto to be more profitable, and sometimes swing trading it. I also buy and sell crypto to others. I am not a millionaire yet, I do not pretend to be, you may just think of me as a homeless bum dressed in a potato sack....

Now lets get to the good stuff. I am looking to start an NFT business. How do I plan to do that might you ask? Well first I plan on making NFTs, not only for money, but as a hobby. Because I am a graphic design artist, and art is a part of my life. But I also plan on buying and selling other NFTs for only a 7% profit. My question to everyone is, how do I explain this to the IRS since NFTs are not even regulated yet? And what do I need to do? This is not a money transmitter business, but an art business. So I need this to be 100% in accordance with regulations.

I thank you for your honest opinions, and hopefully if I see a fit for myself with this board, I will stay and share loads of information and we will talk about trading like we are peanut butter and jelly.

Happy trading yall! Peace be the journey! And thank you
 
If you buy low and sell high, there is a big probability that will be taxed like a cryptocurrency, meaning capital assets, meaning capital gain.

If you create them, you should be taxed like a regular business, since you create things and sell them.

Just a non-professional opinion.
Best!
 
Fonz said:
If you buy low and sell high, there is a big probability that will be taxed like a cryptocurrency, meaning capital assets, meaning capital gain.

If you create them, you should be taxed like a regular business, since you create things and sell them.

Just a non-professional opinion.
Best!
More...

Thank you man, I was scared of having to get audited but even if I'm not doing any trading I should write it off as capital gains? Capital gains means that you made a percentage on the money that you already have right?
 
Tokenz said:
........But I also plan on buying and selling other NFTs for only a 7% profit.
More...
This is the 1st definition of trading (to trade a property for money or anything else).
Capital gains means "Realization of a profit from the sale of property or the sale of an investment".
Keep good records of what you do especially because NFT are not yet understood by most.
Hope this helps.
 
Tokenz said:
Now lets get to the good stuff. I am looking to start an NFT business.
More...

You need to seek the guidance of a good CPA. If you're setting up a platform for trading NFTs in digital currencies, you'll find yourself in a very complex situation regarding how to calculate profit/loss.
 
Fonz said:
Capital gains means "Realization of a profit from the sale of property or the sale of an investment".
Keep good records of what you do especially because NFT are not yet understood by most.
Hope this helps.
More...

Yes that definition was idiot proof thanks

lindq said:
You need to seek the guidance of a good CPA. If you're setting up a platform for trading NFTs in digital currencies, you'll find yourself in a very complex situation regarding how to calculate profit/loss.
More...

How complex could it be though? All you have to pay taxes on is the profits.
 
First of all - i wish you good luck. The most important thing for every business is a successful marketing strategy. From my experience facebook ads and savemyleads is one of the best thing you can do for promotion of your business. Hope everything will work out for you.
 
Tokenz said:
Greetings everyone.
First of all I wanted to say thank you for letting me be a part of this trading community. A bit about myself, I am currently running 2 small businesses. I have been trading stocks for a few years, (Long term) and I also have dabbled with trading crypto, but have found long term holding crypto to be more profitable, and sometimes swing trading it. I also buy and sell crypto to others. I am not a millionaire yet, I do not pretend to be, you may just think of me as a homeless bum dressed in a potato sack....

Now lets get to the good stuff. I am looking to start an NFT business. How do I plan to do that might you ask? Well first I plan on making NFTs, not only for money, but as a hobby. Because I am a graphic design artist, and art is a part of my life. But I also plan on buying and selling other NFTs for only a 7% profit. My question to everyone is, how do I explain this to the IRS since NFTs are not even regulated yet? And what do I need to do? This is not a money transmitter business, but an art business. So I need this to be 100% in accordance with regulations.

I thank you for your honest opinions, and hopefully if I see a fit for myself with this board, I will stay and share loads of information and we will talk about trading like we are peanut butter and jelly.

Happy trading yall! Peace be the journey! And thank you
More...

CT is where to educate yourself on NFT's.

7% is very high, 5% is max, 2.5% is the rate of most secondary sale royalties
 
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