🎮Play-to-earn gaming NFTs

Activity differs between games however, generally, it is likely that ‘in game’ earnings are taxable as they involve some form of crypto-to-crypto trade.

Selling & Trading NFTs or assets within a game

Although there is no guidance from the IRS, we would expect that selling or trading NFTs or assets within a game would generate a capital gains disposal. Again, clear IRScguidance is lacking but, as NFTs are classed as digital assets, which are subject to capital gains, we expect the normal rules of short-term and long-term capital gains to apply.

Earning NFTs within a game

There is no guidance from the IRS however we assume that earning an NFT or asset within a game would be taxable as ordinary income.

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