A glimmer of hope in the crash There are millions of dollars in potential tax savings in the NFT market.
To help NFT investors claim tax savings by the end of the year,CoinLedger recently launched aNFT tax loss harvesting tool. I was. Let me elaborate on how this tool works and how it can help people save tax.
What is Tax Loss Harvesting?
Tax loss harvesting is a tax reduction strategy used by smart investors to reduce their total tax liability for the year. By selling an asset that has depreciated since it was first acquired, an investor can earn harvestcapital his loss and generate a tax deduction.
Imagine the following scenario:
Jane Doe sells part of her Bitcoin holdings in February 2022. and realized a capital gain of $50,000.
Her $50,000 became income for which Jane had to pay taxes. If Jane is a high-income earner, she could have to pay Sam up to 37% in taxes, or $18,500. pain!
Let’s say that same year Jane also spent her $30,000 on her NFT. All that value is now close to her $0.
If Jane recovers her losses from her NFT, she can realize a capital loss of $30,000 and reduce her net capital gain to $20,000.
Now Jane’s annual tax amount is just her $7,400 (37% of her $20,000). Simply recovering NFT losses would save Jane $11,100 in taxes!
NFT Tax Loss Harvesting Issues
Unfortunately , NFT investors may find it difficult to recover losses if the NFT does not have liquidity on the public market.
In a situation like this, an investor could be facing thousands of dollars in paper losses with no easy way to legally dispose of her NFTs and realize a capital loss. there is.
Enter CoinLedger’s NFT Loss Harvestooor
CoinLedger recently launched a new NFT We launched Loss Harvestooorto provide a solution for NFT investors looking to recover their losses and save taxes.
NFT Loss Harvestooor is a smart contract deployed on Ethereum mainnet that buys NFTs for 0.00000001 ETHeven if the NFTs have no liquidity.
This allows investors to realize capital losses and reduce taxes.
One of her NFT investors has already saved him $7,400 in taxes using NFT Loss Harvestoor.
How does CoinLedger’s NFT Loss Harvestoor work?
To start harvesting losses, any investor can transfer their wallet to her Just connect to NFT Loss Harvestoor. Once the wallet is connected, you can choose her NFTs to sell or dispose of.
Once selected, click Sell to sign the deal. Realized losses can be used to reduce your tax burden.
Is NFT Loss Harvestoor safe to use?
CoinLedger has been in business since his 2018, and since its inception, hundreds of thousands of Serving individual investors.
Developed by the CoinLedger team, the NFT Loss Harvestoor smart contract has undergone a rigorous audit process to ensure compliance with industry standards.
Additionally, you can be assured that all code that powers the contract is fully open and available to the public.
Get Started Today — It’s Free
NFT Loss Harvestoor is completely free to use. CoinLedger does not charge transaction fees for interacting with contracts other than gas, which is necessary to cover blockchain processing fees.
First, visitNFT Loss Harvestoor to see how much tax users can save this year!
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