BWAHAHAHAHAHAHAHAH My tax appointment is coming up, already told my wife if our tax cpa recommends ways to save on taxes to politely say no and our intent is to pay the highest possible tax
Nothing goes from zero to +. If it could, that would be an infinite percentage gain, which is not possible. That Twitter dude's accountant is a moron.
Fortunately, it is very common in crypto, through airdrops Bored Ape holders got 2 airdrops last year, Mutant serum (Mutant Apes) and Bored Ape Kennel Cheapest Mutant Ape right now is $86,000 Cheapest Bored Ape Kennel is $25,000 Bored Ape holders got 10,094 $APE tokens a couple of weeks ago, which is worth $12 each token So, what would be the cost basis if you were airdropped something for free? There are many other airdrops in the past, UNI tokens, DYDX, etc PS: This is similar to 2017 when Bitcoin hodlers got free fork tokens like Bitcoin Cash, BSV, etc
NOTHING is free, dude. That is my point. If you had Bitcoin, well, you already paid for it. So you got a nice return with the airdrop. The only way anything is free is if it is given to YOU with no outlay by YOU! And if you wish to disprove my point, then give me some bitcoin or ape airdrops whatever right now. Go on, give them to me. That would be free to me.
I think the point is how to put on the tax, since the price you paid for is the cost basis I think it can be treated like a 1-time dividend, but the issue is what is the declared value, since Mutant Ape went up in value from the time of the airdrop to now ------------------------------ Azuki airdropped 2 NFT's four days ago and each one is worth $18,000 so $36,000 total Are you saying to tell your accountant that the price you paid for the Azuki? If you bought the Azuki and sold before the airdrop, you did not get those NFT's and if you bought after the airdrop, you also did not get the NFT's So it makes sense to call them special dividend, but I'm not a tax expert
The true value of an NFT, from 2.9 MM to less than $300. And if you wondered what the German word to describe this idiot is: "Schlussverlierer", "Final loser".
It seems to me he got instant celebrity status for himself and major publicity/marketing for his own token. All that for a mere $2.9 million. Apparently, the holders of his token are now left holding the bag. Who knows how much money he made. He is in Iran, but if he were in the U.S., another angle to see it from is that his loss of $2.9 million may be used to offset gains for tax purposes, essentially giving him “free” publicity worth millions. From that angle, celebrities getting in on the NFT hype to increase the visibility of their “brand” makes a lot of business sense regardless of whether they make money on the NFT itself.