The taxation of non-fungible tokens (NFTs) is still something of a mystery. All we have to go on is the IRS definition of digital assets and Notice 2023-27. The IRS digital asset definition includes NFTs, stating that they are a “digital representation of value which is recorded on a cryptographically secured digital ledger or any similar technology.” Notice 2023-27 suggests that certain NFTs are taxed as “collectibles.”
Even without any more government guidance, the tax treatment of NFT creators should be fairly straightforward.