What happens if you buy an NFT and then it loses its value? Unsellable offers a new service that buys low-value NFTs for tax write-off purposes.
Tax Solutions for NFT Owners
Despite the increased popularity and attention, NFT purchasing still comes with a great deal of uncertainty. Many have invested in NFTs without fully understanding the tax implications of the technology. Fortunately however, NFT Plazas has an entire guide on NFTs and taxes for those looking to read up on the matter.
The Unsellable project aims to alleviate the problem of low value NFTs by providing a tax solution few may have thought of. The company will issue a receipt for any NFTs it buys, which sellers can then use as a proof of their losses and submit for tax write off purposes.
The company, owned by Skyler Hallgren and Zach Miller, buys the NFTs for a fraction of the price originally paid. Per the Unsellable website:
“Unsellable supports NFTs on the Ethereum blockchain (ERC-721 + ERC-1155), by far the most popular chain for NFTs, with other blockchains coming soon!”
“If you purchased your NFT for more than $0.01, selling it to Unsellable will almost certainly qualify for a tax write-off. You may be able to use that write-off to lower your taxes…”
Finally, we live in an unpredictable world where the value of investments fluctuates on a whim. Now, Unsellable offers NFTs tax write-offs as a solution for owners of digital assets that have lost their value.
Source NFT Plazas