FL - Guidance issued on affidavit required to claim exemption for boats sold to nonresident purchasers
Guidance is issued regarding changes that have been made to the affidavit required to claim the sales tax exemption for […]
Read MoreThe IRS requested comments on its intention to treat certain nonfungible tokens (NFTs) as collectibles under Code Sec. 408(m). If an NFT is treated as a collectible, an IRA’s acquisition of the NFT would be treated as a distribution equal to the cost of the NFT. In addition, treating NFTs as collectibles would affect the long-term capital gains tax rate under Code Sec. 1(h). For this purpose, the IRS defines an NFT as a unique digital identifier that is recorded using distributed ledger technology and may be used to certify authenticity and ownership of an associated right or asset, such as a digital file, digital music, the right to attend a ticketed event, or ownership of a physical item.
Pending the issuance of the anticipated guidance, the IRS intends to determine whether an NFT is a collectible by analyzing whether the NFT’s associated right or asset is a Code Sec. 408(m) collectible. Under this “look-through analysis,” if the NFT’s associated right or asset is a Code Sec. 408(m) collectible (for example, an NFT that certifies ownership of a gem), then the NFT is treated as a collectible. Similarly, if the NFT‘s associated right or asset is not a collectible (for example, a right to use a plot of land in a virtual environment), then the NFT is not treated as a collectible. If the NFT‘s associated right or asset is a digital file, the IRS would apply the look-through analysis by asking whether the digital file constitutes a “work of art” under Code Sec. 408(m)(2)(A). If it does, the NFT would be a Code Sec. 408(m) collectible.
The Treasury and IRS requested comments on any aspect of NFTs affecting an NFT’s treatment as a Code Sec. 408(m) collectible. In particular, the IRS solicited comments on the definition of NFTs, how the look-through analysis might be applied to an NFT with more than one associated right or asset, and what factors to consider in determining whether a digital file associated with an NFT is a “work of art.”
Guidance is issued regarding changes that have been made to the affidavit required to claim the sales tax exemption for […]
Read MoreThe Florida Department of Revenue is offering corporate income tax return filing extensions for businesses in counties affected by severe […]
Read MoreFlorida issued guidance that discusses the new corporate income tax credit for employing individuals with unique abilities. The guidance includes […]
Read MoreFlorida issued guidance that discusses the new corporate income tax credit for employing individuals with unique abilities. The guidance includes […]
Read MoreThe IRS has released the inflation adjustment factor for the credit for carbn dioxide (CO2) sequestration under Code Sec. 45Q for 2024. The inflation adjustment factor is 1.3877, and the credit is $27.75 per metric ton […]
Read MoreThe IRS has announced plans to deny tens of thousands of high-risk Employee Retention Credit (ERC) claims while beginning to process lower-risk claims. The agency’s review has […]
Read MoreThe IRS has issued a warning about the increasing threat of impersonation scams targeting seniors. These scams involve fraudsters posing as government officials, including IRS agents, […]
Read MoreThe IRS released the inflation adjustment factors and the resulting applicable amounts for the clean hydrogen production credit for 2023 and 2024. For 2023, the inflation adjustment factor is one, so the inflation adjusted applicable amounts are the same as those in Code Sec. 45V(b). Thus, the applicable amounts for a […]
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