On the Axie Infinity Discord server, hundreds of messages pour in every day from individuals seeking scholarships in the form of borrowed Axies. By some estimates, around 40% of players on Axie Infinity are now based in the Philippines. It also likely adds overseas tax implications, since many managers live in developed nations and lend to scholars in developing nations. That triggers business tax requirements rather than capital gains. Scholarship managers therefore operate business partnerships within NFT games. Thousands of "scholars'' in places like the Philippines and Venezuela play games on behalf of NFT owners ("managers") in exchange for a share of the resultant earnings. While the name suggests an altruistic support system, scholarships are all about making money. Kim also pointed to the added complexity that comes with the "scholarship" model employed within play-to-earn gaming. "There's quite a number of people reaching out, and I think that is associated with just general mindset toward the end of the year."
"We're actually getting more questions," she said. "Taxes may come as more of an afterthought for a lot of the investors," noted Jen Kim, head of Product at NFTBank.ai.
URBAN RIVALS DATABASE NIGHTMARE SOFTWARE
By contrast, mainstream crypto-trading platforms like Coinbase prepare customer trade data for tax services either in the form of CSVs or direct software integrations. So while there are plenty of services designed to assist with crypto tax filings, it can be difficult to get the raw data that feeds into those products. Making matters worse, NFT games don't typically keep track of all your transactions for tax documentation purposes. Even seemingly trivial in-game item swaps can have tax implications. If you converted your NFT into a cryptocurrency before cashing out, that counts as two separate investment transactions. Did you sell it less than a year after you bought it? (The answer is almost certainly "yes," given the timing of the play-to-earn boom.) Well, then it's a short-term capital gain.
But it turns out the play-to-earn model also has the incredibly inconvenient side effect of turning even minor actions taken in a video game into taxable events.ĭid you sell your cute digital creature on Axie Infinity? That's a taxable event. In a matter of months, NFT gaming became a multibillion-dollar industry by combining two things people already loved: video games and getting rich from crypto.
0 kommentar(er)
