NFTs And Taxes

What's Dropping, NFTs x Taxes, McRibs, And More

November 01, 2021

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What's Dropping ⚡️

  • Just a couple of days ago Mutant Ape Yacht Club reached a 4 ETH floor.

  • Beeple created an IRL digital display called HUMAN ONE - it's incredible and you can view it here.

  • BYOPill's Apostles launched yesterday, 10/31 @ 7pm EST. BYOPill and BYOKey holders can claim an Apostle here.

  • Cheers to the most expensive Disney+ subscription. VeVe is releasing a Disney character NFT collection as part of a Disney+ promotion. NFT owners will receive a 3-6 month streaming membership.

  • Harry Files has been blowing up on Twitter with riddle-based posts. Solving the riddles and engaging with the tweets gets you on the whitelist for this mysterious A.I. NFT project.

NFT X Taxes 💀

“Our new Constitution is now established, everything seems to promise it will be durable; but, in this world, nothing is certain except death and taxes" - Ben Franklin

Franklin said this in the 1700s and now in the year 2021, absolutely nothing rings more true. To add fuel to the fire we are now in a digital age with digital assets and I think everyone reading this can agree that this year's tax season is going to be nothing short of interesting.

Some common questions that have arisen are:

How are NFTs taxed? Are gas fees write-offs? Is transferring wallets a taxable event? and much much more...

Luckily - we have some insight below!

When it comes to important matters such as this don't just take the internet's word for it. Consult with your CPA and make sure everything is buttoned up this tax season.

Most people in this space are holding their breath and hoping some sort of software or company comes along and clears up the conclusion - a "Turbo Tax for NFTs" per se.

Here are two that I have found: @TokenTax and @CoinTracker

McRib NFTs

Remember the McDonald's hamburger that survived 20 years in a man's coat pocket and still looked fresh off the grill? Well, McDonalds is doing it again! They are giving away 10 McRibs that you can hold onto for a lifetime— except this time it is in digital, NFT form. It'll be the first McRib you can fit in your wallet (NFT wallet, that is) and will live on the blockchain forever! Here's everything you need to know!

The McRib is celebrating its 40 year anniversary and makes its U.S. nationwide return on Nov. 1st for a limited time. The McRib is seasonal, and can only be enjoyed during the colder seasons (basically the same as Starbuck's Pumpkin Spice Latte). In honor of its return, McDonald's is giving fans on Twitter a chance to win 1 of 10 McRib NFT's. For a chance to win, all you have to do is follow @McDonalds on Twitter and retweet the Sweepstakes Invitation tweet any time between Nov. 1 through Nov. 7 from your public account. By Nov. 12 McDonald's will select 10 fans to receive the exclusive McRib NFT.

So how much will these NFT's be worth? Well, David Whipple— the man who held onto a physical McDonald's burger for 20 years— got an offer on eBay for $2,000 back in the day but decided to hold onto it. A stale hamburger might not be the best benchmark, but it's probably not too far off. Comparatively, Taco Bell released a series of NFT collectibles on Rarible that have sold for approximately 2-10 ETH each. Tell us on Twitter— are you looking forward to getting a real McRib today or scoring a digital McRib?

Meme Drop

Disclaimer: The Drop DOES NOT provide financial advice. All content is for informational purposes only. The Drop is not a registered investment, legal, or tax advisor or a broker/dealer. Trading any crypto-related asset is extremely risky and could result in significant capital losses.

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