If you’re into NFTs, chances are you’ve bought a few that are, well, downright worthless. It happens to everyone, mainly because there are so many NFT projects, and the market conditions are currently terrible. Even the most prominent collections are down bigly.
But there is a solution to your worthless .jpg woes, one that could even help you not owe any money to the tax man. It’s called The NFT Loss Harvestooor website.
Introducing the NFT Loss Harvestooor — A dApp that buys illiquid NFTs to help you claim losses and reduce your taxes.
Here's how it works 🧵..https://t.co/CqQjKlOkmO
— CoinLedger (@CoinLedger) December 5, 2022
In fact, on the site’s About Us page, one of the key selling points is that the creators of the site are also tax experts (something that more of us should strive to be). There also seems to be a partnership with CoinLedger, a crypto-based tax service.
It looks like The NFT Tax Harvestooor website was born out of frustration. One of the founders realized he had no easy way to sell back all of his worthless NFTs. This meant he could not easily tax loss harvest his NFTs which would save money owed to the tax man.
The Tax Loss Harvestooor is an Ethereum smart contract that allows users to connect their crypto wallets to sell their NFTs. In return, the seller receives a small amount of Ethereum (0.00000001 ETH). One of the best parts of the site is that there is no transaction fee. All the user has to cover is the cost of gas. So, if you time it right when gas is low, this could be a very cheap transaction, but keep in mind that you’ll need at least a small amount of $ETH in your wallet. It’s also nice that the website has several resources for users to learn about tax loss harvesting and crypto taxes in general. The creators definitely built value into the site.
The site mentions that they only support Ethereum-based NFTs, but it’s unclear if they mean only those NFTs bought on the Ethereum network or all ERC-721 NFTs in general. Think of their NFT selling service as a kind of freebie because the site actually makes money by funneling users to CoinLedger, where they can hook you up with a paid crypto tax return service. They also mention that additional blockchains might be supported in the future if there is enough support, and they encourage users to reach out to them on Twitter if they would like another chain added.
Overall, The NFT Loss Harvestooor is a cool website that performs a valuable function for free while educating users and giving them an option to easily complete their crypto taxes within the same ecosystem. The site has a simple user interface that could be used by everyone from newbies to seasoned NFT holders. With the prevalence of NFTs increasing, and market conditions continuing to deteriorate, it’s possible that other sites like this might start popping up in the near future.
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