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information Why Domain Name Investors Are Buying Up NFTs

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There's a reason domain name investors are flocking to NFTs. And one industry veteran says it's still early days for unlocking NFT investment value.

Andrew Miller is CEO of ATM Holdings, and has invested in and advised some of the highest-value domain name transactions on record, including recent deals for Home.com, Candy.com, and Universal.com. He founded CreditCards.com and InsuranceQuotes.com, both successful exits.

He started investing in NFTs in 2021, and acquired his first Bored Ape in August.


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The views expressed on this page by users and staff are their own, not those of NamePros.
Good discussion, I am enjoying everyone’s input.
 
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You can Now rent your NFTs. So since blockchain domains are NFTs you can rent them just like you rent via Dan.
 
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US - How NFTs Are Taxed

Do I Have To Pay Taxes on My NFTs?


The short answer: Yes. Profits you make trading Non-Fungible Tokens (NFTs) are taxable.

Three things will trigger a tax-related event:

  1. Spending cryptocurrency such as Ethereum to buy an NFT.
  2. Selling an NFT.
  3. Trading an NFT.
Each of these transactions is one small part of your overall financial picture. Income, realized losses and expenses from your job, other investments or crypto can impact your tax liability.

In other words, it’s possible that you could sell an NFT for a profit and not owe any federal or state income tax.

If you use fiat currency to buy Ethereum at $3,000 for the sole purpose of purchasing an NFT, and Ethereum moves to $3,001 when you buy the NFT, you technically realized a $1 crypto gain. That’s a taxable event.

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US - How NFTs Are Taxed

Do I Have To Pay Taxes on My NFTs?


The short answer: Yes. Profits you make trading Non-Fungible Tokens (NFTs) are taxable.

Three things will trigger a tax-related event:

  1. Spending cryptocurrency such as Ethereum to buy an NFT.
  2. Selling an NFT.
  3. Trading an NFT.
Each of these transactions is one small part of your overall financial picture. Income, realized losses and expenses from your job, other investments or crypto can impact your tax liability.

In other words, it’s possible that you could sell an NFT for a profit and not owe any federal or state income tax.

If you use fiat currency to buy Ethereum at $3,000 for the sole purpose of purchasing an NFT, and Ethereum moves to $3,001 when you buy the NFT, you technically realized a $1 crypto gain. That’s a taxable event.

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Yeah, I laid out the tax scenarios earlier in this thread or another one. A lot of people involved don't seem to understand how taxes work on crypto/NFT, which is likely to get them in trouble.

This stuff is on the radar of the IRS, and with blockchains it largely makes it easier for them to track in many situations.

If you want to deal in these, go for it. If you think in the US you can use crypto or NFT to evade taxes it is only a matter of time until you get caught. The blockchain only makes it easier for authorities to track.

Brad
 
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... a hint:
Some (quite some) of big $ NFTs transactions are made via offshore (incl. some of B-Ape Vocals*).
The US T% rules doesn't apply.

Anyway, the nft price-up will end before March 25-30, 2022, ... till then ... take a care.

Regards
 
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... a hint:
Some (quite some) of big $ NFTs transactions are made via offshore (incl. some of B-Ape Vocals*).
The US T% rules doesn't apply.

Anyway, the nft price-up will end before March 25-30, 2022, ... till then ... take a care.

Regards

Obviously not all trades are involving tax evasion or money laundering, but it would be hard to design a better system for it than crypto and NFT at the moment.

Brad
 
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So crypto was supposed to be anonymous. I get that if you use a website like CoinBase then you're putting the Central back into DeFi but like...how can you anonymously acquire crypto and from there buy and sell NFTs?

It seems like a really dumb idea to bother with crypto at all if there's no anonymity. Just use your Spark business card and get 2% cash back...
 
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So crypto was supposed to be anonymous. I get that if you use a website like CoinBase then you're putting the Central back into DeFi but like...how can you anonymously acquire crypto and from there buy and sell NFTs?

It seems like a really dumb idea to bother with crypto at all if there's no anonymity. Just use your Spark business card and get 2% cash back...
Even Elon Musk doesn’t understand the idea of Crypto
 
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Monkey see monkey do with diagrams. Scrape shell shill it.
 
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Pranksy Buys (Probably) Fake Banksy NFT for 100 ETH, Is Promptly Refunded

The NFT seemed legitimate because it was promoted on Banksy's website, which also linked to an auction on OpenSea, a popular NFT trading platform. But the page on Banksy's site was deleted shortly after the auction closed, which led Pranksy to believe they might have been scammed by whoever created the NFT in question.

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heard NIFTIES.COM & NIFTIES.TV are for sale.

Good domains for a big company willing to enter the space.

(NFTs.com seems to have been sold, anyone can confirm?)
 
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Had a non buyer via Dan.com for Nifty.Exchange a few weeks ago.. But I’ve had other offers xxxx
 
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NFT are the tax shelter of digital assets, pay way more than it's worth then write off the loss to lessen tax burden.
 
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NFT are the tax shelter of digital assets, pay way more than it's worth then write off the loss to lessen tax burden.


You're clueless...

Anyone uneducated on Domains, would say the same thing about your domains.
 
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Your probably right, I don't get why people so much value in digital artwork. However still picked up some Metaverse play domains and bought a couple NFT's. I may not get why people see value but there is enough of a market I am smart enough to want asset exposure.

You're clueless...

Anyone uneducated on Domains, would say the same thing about your domains.
 
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NFT are the tax shelter of digital assets, pay way more than it's worth then write off the loss to lessen tax burden.
Either you're super smart and lightyears ahead of me or you've never paid taxes for a business before.

You could buy something and then less that something at a loss, sure. But why would you want to? If you earned a million dollars in income, in the US you'd owe around a third for income taxes. Less if you owned a corporation or LLC. So you'd have $667k left. You could tell your accountant to charge you $1,000,000 and then you wouldn't have to pay taxes on that million but then you'd also be out the 667k... Makes no sense.
 
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NFT are the tax shelter of digital assets, pay way more than it's worth then write off the loss to lessen tax burden.

I believe what you are thinking about are tax brackets.

For a really simple example (random numbers) on 10k a corp is not taxed, but money made over 10k is taxed at 20% so the corp makes a donation to a foundation that is approved for tax write off for the amount donated so the corp would donate 1k saving them on the 20% tax rate,

So in this case they don't lose 2k but just 1k

When doing this on much bigger scale you can safe a lot of money.
 
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You're clueless...

Anyone uneducated on Domains, would say the same thing about your domains.

(We're here to discuss & to give a few opinions, not ... "You're clueless...")

Learn more ... (Intellectual property aka nft's. DN's can take another T% route)

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Regards
 
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Read the article and still don't get it. Not something i'd ever go near.

The point about seeing a bored ape in a Super Bowl advert, ok but why bored ape?' Why not an happy ape or a confused one or an excited one?

Oh well, someone best develop HappyApeClub.com then
 
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NP thread Domains stolen through phishing ... opensea
 
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I'm actually trying to think of hand reg nft domain names!!

Michael
 
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It seems like some people involved in this space have serious attitude problems. I have seen this from several others involved, including some well known domain investors with some of their comments.

Look, not everyone is going to believe in this stuff. When people are not convinced they are labeled as "haters" or wanting to see people fail.

At the same time this stuff has many aspects of a bubble or mania that has happened in the past countless times.

You do your thing.

You are not going to be able to convince some people that little images that are easily copyable are worth hundreds of thousands of dollars.

Brad

This brings to mind Raymond's article about domaining on the decline caused by the interest in NFTs and Crypto.

Ultimately, those that like variety (e.g. the "I'm bored with domains" types) will move onto the next new investment / speculation venture (Omniverse?) while others stay focused on what they understand and enjoy.
 
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