Unsellable NFT app launched to help with tax write-offs

In the NFT (nonfungible token) space, things are so bad that collectors are now selling them as tax write-offs.

NFT holders are increasingly unloading their digital collectibles. Some tax experts now recommend harvesting losses made by “worthless NFTs”.

Selling at a loss can create tax write-offs that can reduce annual income tax bills. Tax loss harvesting has become a key strategy this year as crypto and stock markets.

Strategic selling at a loss can offset gains from other investments. Experienced investors use this strategy throughout the year to avoid accumulating excessive taxable gains.

Furthermore, a new website has been launched to help with the sale of unsellable NFTs.

Selling worthless NFTs

Recently launched website Unsellable claims to help those with NFTs that have plummeted in value. It noted that tax loss harvesting can become problematic when NFTs are included.

“While every investment class has its losers, many of the NFTs we invested in were not just large; they were now totally worthless … illiquid … unsaleable.”

The website was created to provide liquidity to NFTs that cannot otherwise be sold. The platform buys tokens for pennies and provides the official receipt for tax purposes. Furthermore, it retains all tokens to build “The Unsellable Collection” to become the “ultimate artifact from the early days of web3.”

In addition, the collection is listed on OpenSea and contains 38 items. The most expensive, “Impermanent Digital #3238”, is listed for 0.299 ETH (about $354, so not completely worthless).

The platform charges a transaction fee of 0.0032 ETH plus gas. It offers 0.0000064 ETH (about $0.01) for every NFT it buys. However, the product is the tax receipt that can lead to significant savings.