The Australian Taxation Office (ATO) has released an outline of its priority areas warning NFT investors of possible NFT trading drawbacks. The release stipulates that as with selling property, shares, or the like, selling NFTs attracts capital gains tax. Regarding this, ATO Assistant Commissioner Tim Loh said through the release:
“Crypto is a popular type of asset and we expect to see more capital gains or capital losses reported in tax returns this year. Remember you can’t offset your crypto losses against your salary and wages”
Frequent errors on taxing were reportedly found upon consistent scrutiny of digital tokens sales. As such Loh stressed the importance of understanding what it NFT investments mean to investors' tax obligations.