I’m a crypto artist and collector, meaning I deal in the buying and selling of NFTs.
I have found Koinly effective in helping me calculate my income and capital gains from the sale of NFTs I myself have created.
However, I still have this question about taxes pertaining to NFTs. I often buy NFTs as a collector. While many of them I hold long-term, some I sell. It stands to reason I would be expected to report those sales as capital gains. But how can that be accurately calculated without marking the purchase itself as a cost?
Would this be correct to calculate my taxes by assigning the “cost” label to all my NFT purchases, knowing that any or all of them are assets that could potentially be re-sold? And then marking the sales themselves as income?
Any insight anyone could provide on this topic is much appreciated.