How are NFTs taxed and are they treated differently from crypto?

From my tax experience, NFTs are taxed like property, not like currency. If I sell an NFT for cash or crypto, I report a capital gain or loss based on the sale price minus my cost basis (what I paid plus minting fees, gas, etc.). Holding period matters: short-term (≤1 year) taxed at ordinary income rates; long-term (over 1 year) gets lower capital gains rates. If you receive an NFT as payment, for example for a job or a giveaway, that's ordinary income at the fair market value on the day you got it, and your basis becomes that FMV. Trading one NFT for another is a taxable event, just like exchanging stocks; you’ll owe capital gains on any difference. Royalties earned from NFT platforms are generally ordinary income. NFT valuations are fuzzier than crypto; you may need appraisals for donations; and 1031-like exchanges are not allowed for digital assets. In practice, I keep receipts of purchases, mint fees, and sale proceeds; I use a tax-lot tracker to compute gains; and I file Schedule D and Form 8949 in the US, or your local equivalent. If unsure, talk to a crypto-savvy CPA.

NFTs are taxed like property, not coins. In my experience, selling an NFT triggers capital gains based on your basis (purchase price plus gas/fees). If you held it under a year, it's short-term and taxed as ordinary income; over a year, long-term rates apply. Both NFT and crypto gains require tracking basis, dates, and fees for tax reports.

NFTs to me feel like collectibles taxed on gains; crypto is property, taxed on gains with different rules.

NFTs follow the same tax rules as crypto: they’re property, not currency. In my returns I treat an NFT sale as a capital-gains event. If I bought the NFT with ETH, I set the NFT’s basis in USD to the ETH’s value at purchase. When I sell the NFT for fiat, I report a gain or loss equal to the sale price minus that basis, with long-term rates if I held it over a year and short-term otherwise. If I mint an NFT or receive one as payment, that’s ordinary income equal to the fair market value when I received it. If you swap crypto for the NFT, you’re disposing of the crypto too and must report its gain/loss. Keep detailed records of dates, values, and wallet activity, and check in with a tax pro for your situation.