At Valles Accountants, we have consistently shown ourselves to be at the forefront of NFT tax in Australia, building on our cryptocurrency knowledge as the NFT market grows.
Over the past seven years, we have liaised with senior ranking ATO officials on cryptocurrency policies, as well as with Blockchain Australia, in our work as cryptocurrency and NFT tax accountants.
As active cryptocurrency investors ourselves, we combine our unique knowledge as Chartered Accountants with our passion for NFTs, crypto and other blockchain technologies.
As specialist NFT tax accountants, we stay at the forefront of industry developments and are able to guide and educate our clients, translating complex information into accessible and actionable advice.
These factors position us as some of the most experienced NFT tax accountants Australia has to offer. We are highly capable of meeting all your tax accountancy needs – spanning traditional and emerging financial markets.
If you have landed here, chances are you are aware of what an NFT is and are seeking someone who can deliver dependable services as an NFT tax accountant.
If NFTs are new to you, here is a quick run-down on what an NFT is and isn’t.
Firstly, a ‘non-fungible token’, or NFT, is a digital token that is not ‘fungible’, which means it’s not replaceable by something similar.
Whilst Australian tax guidelines treat cryptocurrency and NFTs similarly, an NFT is actually an asset, generally digital, that uses the same blockchain technology as cryptocurrency.
NFT’s inherent value is their ability to store transactional records of authenticity, as well as proof of ownership on the blockchain. This can create a powerful sense of security for both creators and investors.
NFTs are commonly linked with creative property, or collector’s items, with a built-in capacity to receive commissions and royalties, even if resale occurs. We are increasingly seeing them used for the sale of domains, real estate, and many other transactions.
As the leading NFT tax accountants in Australia, we pride ourselves on an exceptional level of knowledge of this exciting emerging field. We invite you to get in touch with our team of Tax Accountants in Melbourne, Sydney or Brisbane today.
At Valles Accountants, we are not only highly trained in traditional fields, but at the forefront of NFT tax accountancy in Australia.
We have valuable insights into the workings of the industry from both a professional and consumer viewpoint. We understand the unique challenges of finding someone experienced that you can trust – who also understands the intricacies of NFT taxes.
We invite you to get in touch which our team today to discuss how we can assist in managing your NFT tax needs, and why we are an excellent choice as your NFT tax accountants.
Generally, yes, NFT sales are taxed, but different scenarios exist within this rule, that an experienced NFT tax accountant can help you to understand.
Whilst you are not taxed when you buy an NFT in Australia, and NFTs are GST-free, there are almost always tax implications for individuals and businesses who sell or trade NFTs.
For this reason, it’s hugely beneficial to work with an experienced NFT tax accountant who can maximise your earnings while helping you stay compliant.
While it is best to discuss your individual needs with an NFT tax accountant, a general guide follows.
The initial sale (or royalties or commissions) of an NFT is generally assessable as business income.
If you close the business that made the initial sale, any further income generated by the original sale would likely be treated as personal income. If you sell the business, it will be treated as business income.
As an investor, you are responsible for meeting the NFT capital gains tax obligations, which are dependent on your income tax bracket. Professional traders of NFTs are liable for business income taxes related to the sale and trade of NFTs.
When you sell an NFT, tax obligations are treated as Capital Gains Tax assets. Selling, exchanging for cryptocurrency or another NFT, or gifting an NFT (unless given to a recipient who is eligible to claim it as tax-deductible) will be seen as a taxable transaction.
Creators of NFTs can deduct expenses directly related to the creation of an NFT, and buyers can claim an expense deduction if an NFT is directly required for the purposes of their business.
Holding an NFT for more than a year can bring substantial CGT reductions into play. For more information that can help you get the most out of your NFT collection, speak to an experienced NFT tax accountant at Valles Accountants today.
Looking for NFT Tax Accountants near you? Contact the Valles NFT accountants in Sydney, Melbourne and Brisbane.