Today we wrote that a rare Punk #4156 in the form of a monkey in a blue bandana was sold for an amount that is 7 million less than its previous price. Let us consider this situation in more detail in order to understand the motives of the seller who suffered such a loss.
So, as we wrote earlier, an NFT from the popular CryptoPunks series was sold for 2691 ETH, which is equivalent to 3.3 million at the time of purchase, since ETH was trading at approximately $1.2 thousand.
Although many will consider this amount fabulous, for connoisseurs of crypto art who follow the NFTs from this collection, it is immediately clear that the token was sold for a low price.
This NFT is the bearer of several rare traits. Therefore, many investors in social networks wrote that this token should cost much more.
Actually, the previous owner of this NFT gave 2500 ETH for it. This is 191 ETH lower than today. But the fact is that in December 2021, when the previous owner acquired it, the token cost him $10.26 million in dollar terms. Almost three times more than the price offered today.
Thus, the seller suffered a significant loss in dollar terms. However, he can write it off to get a tax break, and this will be a financially beneficial move. To do this, the seller does not need to convert ETH to dollars. They can remain on his account and in the future, when their price rises, they will be able to make a profit.
In doing so, the US Internal Revenue Service (IRS) will consider the loss realized, and this will reduce the capital gains obligation by $7 million. This may also affect the tax rate, resulting in additional tax benefits.
Note that the buyer of Punk #4156 also did not remain in debt. He tweeted that he purchased the NFT to create wealth for future generations of his family.
He wrote that he knows what the tokens from this collection are worth, and he believes that their price will go up when the bear market ends.
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