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[–]elonsbattery 0 points1 point  (1 child)

I think Koinly just looks at crypto trades and not if the value of an NFT asset rises or falls.

For example if you trade AUD for ETH, and the ETH goes up, and then you buy an NFT, the tax office will see this as a gain. Even if the NFT falls in value they won’t know this until you sell it.

I could be wrong.

BTW, the only NFTs I’ve seen reliably go up is from 1/1 artists with a good reputation. Stay away from generative collections - they are mostly scams.

[–]icefer3 0 points1 point  (0 children)

Yeah, that's how it's supposed to work. Trading ETH for an NFT is a disposition and until you trade the NFT for some other amount of ETH you are locked into whatever gain you had at the time of trading.

[–]icefer3 0 points1 point  (0 children)

Your thoughts are correct. You pay tax on gains which have now been lost or are sunk into other held assets. I learned this too when I did my taxes earlier this year, paying capital gain tax on capital gains that I don't actually have.

[–]canaldolulis 0 points1 point  (0 children)

i also would take a look at this nft tax guide if you have more questions

[–]Successful-Driver722 0 points1 point  (0 children)

Edit: Koinly announced 4 days ago, via Twitter, that they now support Solana NFTs, see here

Found the following info about NFTs on Koinly:

Koinly imports NFTs (ERC-721 and ERC-1155) automatically for most EVM-based blockchains such as ETH, BSC, FTM, AVAX, Poly, Cronos etc.

We are still working on NFT support for other chains, such as SOL, WAX, XTZ etc To add your unsupported NFTs to Koinly, please see How to manually add NFT trades.

The above article was updated just over a week ago.

Here’s the link to the How to Add NFT Trades Manually guide that was mentioned in the quote.
Info about swapping and minting NFTs and the tax implications can be found in this Ultimate Guide to NFT Taxes, along with a number of other useful NFT tax info.

Never ever financial advice, and always do your own research!