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Fantastic, this saved me a few hundred bucks on my taxes and took less than 5 minutes. Win-Win!
UnsellableNFTs has been a lifesaver! I'm going to be using these savings to buy a BAYC! #Unsellable
This tool really helped me unload those embarrassing early NFT Hype investments. Should shave about $1000 off my tax bill
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.
Each transaction is subject to a platform fee. You’ll pay 0.0025 ETH (about $3) per NFT, plus gas.
Our smart contract optimizes for the lowest platform and gas fees possible by allowing you to harvest multiple collections all at once, and up to 500 NFTs in a single transaction. You’ll never pay more than ~USD $55, no matter how many NFTs you are selling in a single transaction.
You’ll receive [0.0000064 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.
Short answer - No. 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.
Unsellable will buy your worthless, illiquid NFTs so you can realize the loss officially, but we can’t provide individual tax advice or guarantee tax outcomes. It’s important to work with a knowledgeable CPA, and it's helpful to use a professional crypto tax accounting software to analyze your unique tax situation.
We’ve connected with a list of vetted experts with up-to-date knowledge and focused experience on crypto tax optimization.
VIEW LISTHandling your taxes on your own? After trying out all the crypto tax accounting softwares on the market, we’ve vetted the best of the best to make life easier for you.
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