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- A CryptoPunk NFT recently got sold for a heavy loss.
- But this loss can prove to be an aid to the seller.
- CryptoPunk is a collection of pixelated digital characters.
A Good News And A Bad News
CryptoPunk NFT is among the top collections existing in the space alongside Bored Ape Yacht Club, Meebits, and more. Recently, a pixelated ape wearing bandana from the Punk collection was sold at a heavy loss. Someone acquired it for $3.3 Million. You might be asking how this NFT sale can be a loss, right? Believe me, this gave the seller a huge blow of around $7 Million.
But there’s a silver lining in it. The seller of the product can take advantage during tax season. If the individual plays it right he might end up saving a huge tax amount. He sold this rare NFT for 2692 Ethereum. If this sale was made during December 2021, it would reward the owner with $11.47 Million. Considering the current market condition, even $3.3 Million looks good.
How Is This Helping The Seller?
No one plays their cards without an agenda behind it. In this case, it appears like the seller is trying to tackle the taxes. If the former owner writes off the NFT sale as a $7 Million loss with respect to the taxes, it might prove to be a clever and financially beneficial step for him. And he isn’t required to convert Ethereum into fiat money to write off this financial damage.
In the accounting industry, these kinds of intentional losses are not something we rarely see. Everyone wants to save as much funds as they can when it comes to paying taxes to the authorities. This loss will diminish the capital gains in the seller’s balance sheet. It will not just get rid of some tax amount, but it can lead to some other tax related perks.
This wasn’t the initial prominent NFT sales this year. The sector is trying to make a comeback, and some collectibles were lucky enough to bag a satisfactory amount considering the current market position. Another ape style CryptoPunk NFT — #4464 — was sold for $2.6 Million.
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.
