rare CryptoPunks NFTs sold for just $ 3.3 million. This is a $ 7 million loss to the seller, taking into account the falling prices. Ethereum..
But when the tax season comes, if they play their cards correctly, the loss may save millions of previous owners.
Early Friday morning, Punk # 4156 (its unusual features include an “ape” look and blue bandana) sold for 2,691 ETH, about $ 3.3 million, and ETH is currently trading for about $ 1,200.
On the other hand, for the average person, $ 3.3 million is NFT— Unique blockchain token That means ownership — it was actually considered by some punk collectors to be a lowball offer.
“It’s easily worth 25mil in my eyes,” tweeted. borovik.ethWho owns Punk # 3938.
“$ 3.2 million is a joke for the ape, but owners may want to accept it,” Tank, owner of Punk # 4227, wrote on Twitter. Position Before the bid is approved.
Prior to today’s sale, Punk # 4156 was purchased in December 2021 for 2,500 ETH.that is 191 ETH less than today, but worth it $ 10.26 million in December as ETH was trading at more than three times the price today. So today’s sellers made a relatively small profit on Ethereum, but suffered a big loss on the value of the US dollar.
Image: Cryptopunks.app
So why did the owner sell for a loss of $ 7 million?It may have something to do with it Harvesting tax losses..
It could be a financially beneficial move if the previous owners of Punk # 4156 cancel the sale as a $ 7 million loss of their taxes. For tax purposes, the IRS may consider the losses incurred at the time of the sale of the NFT, but the seller does not need to convert the ETH to US dollars to amortize the losses.
This kind of intentional loss is, on paper, a common practice adopted by traders. Reduce capital gains liability.. Reducing capital gains revenue by $ 7 million could further reduce sellers’ tax rates and lead to further tax incentives.
“If you’re confident he won’t make a positive return on that investment right away, it’s actually really smart for harvesting tax losses,” said one Doodles NFT holder. Tweet today Of punk sale.
The seller may be engaged in the good old game of harvesting tax losses, but what about the buyer? $ 3.3 million this Economy?
Janik.sol, who claims to have purchased Punk # 4156, sees this purchase as a gateway to “generational wealth.”
I bought BAYC for $ 400,000 each and kept it to $ 100,000.
Punk is needed to turn savings into generational wealth
“I need punks to turn my savings into generational wealth. Why did I buy them? Because I know that punks are worth something. Bears are over. Then I’m here “Janik.sol Tweeted.
However, this is not the first notable CryptoPunk sale of the week.Punk # 4464 (another Ape-style avatar) $ 2.6 million On Tuesday despite the ongoing crypto winter.
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