Looking for a way to get rid of your worthless NFTs? Our friends at @unsellablenfts make it extremely easy! All you have to do is connect your wallet, sell your NFTs, and harvest your savings.
If anyone is holding worthless NFTs, I highly recommend harvesting the losses before the end of the year. You also might want to check out @unsellablenfts, which is an awesome app that launched last week and makes ditching your worthless NFTs super easy!
My friends over at @unsellablenfts have devised an incredible way to harvest tax losses before the year closes. A few colleagues of mine have already saved thousands. A brilliant initiative!
Every NFT and crypto investor needs guidance from a knowledgeable Tax Lawyer & CPA.
We work with the tax professionals at Gordon Law Group.
They can help you craft your tax strategy, unlock deductions, and keep your taxes clear and legitimate. Learn more about a 30 minute consultation with an experienced NFT & Crypto tax professional.
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Tax-Loss Harvesting is the timely selling of securities at a loss in order to offset the amount of capital gains tax due on the sale of other securities at a profit.
This strategy is most often used to limit the amount of taxes due on short-term capital gains, which are generally taxed at a higher rate than long-term capital gains.
However, the method may also offset long-term capital gains. This strategy can help preserve the value of the investor’s portfolio while reducing the cost of capital gains taxes.
Dan bought 23 NFTs from 6 different collections from late 2020-early 2022. Of the 23, 2 went up in value... substantially. The other 21 have gone down, and 15 of them are illiquid - there are no buyers whatsoever, and the project founders have abandoned the project.
Dan used Unsellable to liquidate his 15 worthless NFTs, and worked with his CPA to write down $3,713 by realizing his losses from those investments. Dan ended up getting taxed at roughly 34%, so Dan's tax-loss harvesting strategy saved him $1,262 on his tax bill.
Let’s take a look at what you might be able to write off your taxes this year by harvesting your NFT losses with Unsellable.
Enter the number of NFTs you want to sell, and the total amount paid for the batch you are selling, to estimate your total loss.
Enter the Federal + State tax rate you’d expect to pay, and voila! Your estimated tax savings!
Want more than just an estimation? Talk to your CPA for personalized tax advice and savings estimates.
Unsellable supports NFTs on the Ethereum blockchain (ERC-721 + ERC-1155), by far the most popular chain for NFTs, with other blockchains coming soon!
You can sell up to 1,000 NFTs in a single transaction. If you need to sell more than that (you poor soul) it’s no big deal - you can just start a second transaction!
If you purchased your NFT for more than $0.01, selling it to Unsellable will almost certainly qualify for a tax write-off. You may be able to use that write-off to lower your taxes this year; if not, you can always roll it over to lower future tax bills as well.
Whether or not that write-off lowers your tax bill this year depends on the many other factors that affect your tax burden, such as income, capital gains, and other expenses. Everyone's tax situation is different, and we suggest speaking with a tax professional to understand the best way to optimize your specific tax situation.
We can’t guarantee that you will be able to buy your NFT back after selling, because that would prevent your sale from counting as a tax deduction. We do this to ensure that your sale is legitimately a true "arm's length transaction", and to avoid any conflict of interest that would come from providing future economic benefit to the seller.
However, you can at any time bid on any NFT in The Unsellable Collection via OpenSea and we will at times accept those bids. This can be on an NFT you have sold or another NFT you discover and want to purchase.
You’ll receive 0.000007 ETH (roughly $0.01) for each NFT you sell - the amount of ETH you receive will vary based on the current exchange price USD - ETH, but it is targeted to $0.01. You’ll receive a receipt at the end of your transaction that you can use to show your capital losses to your accountant or enter the loss into the tax software you use.
You just cover the gas and a small service fee of 0.001 ETH per NFT. Have a ton of NFTs? No problem, you'll never pay more than 0.08 ETH plus gas, no matter how many NFTs you sell.