Protecting Your Digital Art Collection Part 4: NFT Tax Reporting

Disclaimer: this article is written for information purpose only and is not financial advice. Always refer to a tax professional in your region before reporting your taxes on crypto currencies and NFTs. Please note that tax treatment of crypto-assets differs dramatically from one country to the next. The examples below illustrate common approaches, but your local law may use entirely different thresholds, definitions, or forms.

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Yes, tax season is probably already over for 2024. However, it's wise to prepare early for next year as crypto taxes can be tricky. If you've ever tried to find information about an NFT you bought and sold months ago, you know it's a major hassle searching through platforms and Etherscan to confirm values, fees, FIAT equivalents, etc. Today, we'll cover what to track, what tax accountants need from you, and how to optimize your tax obligations.

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Here's what our complete series covers:

  1. ‍How to properly document a blockchain-based art collection
  2. ‍How to securely store your valuable NFTs
  3. ‍Yes, you need to back up and manage your art files
  4. How to prepare for the pain of NFT tax reporting
  5. Think about estate planning sooner rather than later

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Let's dive in!

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Document Your NFT Transactions (Purchases & Sales)

In the first article of this series, we made available an NFT tracker where to list all acquisitions. This is a good place to start gathering all important information, such as:

  • purchase date
  • the token ID, contract address and transaction hash
  • purchase price and gas fees in crypto and equivalent that day in FIAT (USD, EUR, etc.)
  • the wallet address

If you’ve sold NFTs during the year, keep the same information handy:

  • sell date
  • sell price and gas fees in crypto and equivalent that day in FIAT (USD, EUR, etc.)
  • the wallet address

Do this per wallet, as this will be important as well to separate what you have purchased personally and/or via a company, which will have to be reported on separate tax declarations, similarly to your crypto currency purchases. Keeping one spreadsheet tab per wallet prevents personal and business flows from mixing. If you postpone this work, platforms can delist tokens or change interfaces; retroactive data hunts are slow and occasionally impossible.

Here is the link to the article on documentation with the NFT tracker spreadsheet template [link]

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What Tax Accountants Might Ask You For

This of course depends on where you’re located. But one sure thing is that you’ll need these information handy:

  • A list of your wallets to list on your tax report
  • Wallet inventories (crypto currencies / tokens, NFTs) at the beginning and end of the tax period
  • The count and cost basis of NFTs in your wallet at the beginning and end of the tax period
  • Full details of every NFT you sold so they can separate short- from long-term capital gains
  • Besides capital-gains tax, some jurisdictions impose VAT, GST, or sales tax on certain NFT transactions, especially primary-market sales. Your accountant can tell you whether those rules apply.

If you supply clean exports, you shorten the engagement and reduce the bill. Please note that most crypto tax softwares don’t yet handle NFT reporting well. Etherscan exports per wallet are often asked by tax accountants.

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How to Optimize Your NFT Taxes

  • Mind the holding period: In many jurisdictions, a longer holding period can reduce the tax rate applied to capital gains. For example, some countries offer a lower ‘long-term’ rate once you have held an NFT for 12 months or more, while others tax all gains the same regardless of duration. Check the rules where you file.
  • Record transaction costs: Gas, platform fees, and brokerage commissions are often deductible, but rules differ. Record crypto and fiat values for each fee.
  • Gifts & donations: Donating an NFT can offset gains or create a charitable deduction where permitted. Verify that both the charity and the tax code accept digital assets.
  • Residency & source rules: Changing domicile may affect future liabilities, but previous obligations rarely disappear. If you relocate, discuss exit or dual-status returns with a professional.

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Resources

The resources below were current as of 2025 and offer useful background reading, but always confirm any figure or threshold against an official government source.

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United Kingdom:

NFT Taxes UK: Complete HMRC Info + Instructions [2025] https://cointracking.info/crypto-taxes-uk/nft-taxes-uk

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United States:

The Ultimate Guide to NFT Taxes in 2025 https://coinledger.io/blog/how-are-nfts-taxed

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Europe:

Europe Crypto Tax Guide 2025: Regulations & Compliance https://coincub.com/europe-crypto-tax-guide/

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Switzerland:

Crypto Taxes In Switzerland- Ultimate Tax Guide https://www.koinx.com/tax-guides/crypto-taxes-in-switzerland-guide

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Portugal:

Guide to Crypto Taxes in Portugal for 2025 https://tokentax.co/blog/crypto-tax-portugal

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Bottom line: stay disciplined with a wallet-by-wallet tracker, because the timestamp you log today is the cost-basis proof you’ll need tomorrow. Your eventual tax bill hinges on three levers:

  • How long you held the NFT
  • The basis you can document
  • Whether regulators label it a “collectible”

So meticulous records are your only reliable audit defense. Keep them tight, and you’ll enter next tax reporting season calm, not scrambling. In the final installment of this series, we’ll tackle estate planning, ensuring your digital art legacy is as tight as your tax files.

But remember that this article is educational in nature and does not constitute tax, legal, or financial advice. Always consult a qualified professional licensed in your jurisdiction before taking action.

Questions or need help with anything? The 100 collectors advisory team is here at hello@100collectors.art.