You may be sitting on thousands in unclaimed NFT tax losses.
Paste one of your wallets. We'll do a free, 30-second scan and show you how deep the damage runs — no signup, no wallet connection.
Your options for taking the loss
A loss only counts once you actually dispose of the asset. There's more than one way to do that — the right one depends on whether the collection still has a market. We tell you which bucket each position falls into; you and your CPA decide how to act.
If a collection still trades, the cleanest move is to sell into the existing bids or list at floor. A real sale to a real buyer is the most defensible realization event for a capital loss.
For thinly-traded collections, listing at or slightly below floor can find a buyer and turn a paper loss into a realized one — without giving the asset away for free.
For collections with no market at all, some holders send the NFT to a burn address to abandon it. Whether a burn alone is enough to claim the loss is a gray area — this is exactly the kind of thing to run past your CPA.
When a project is truly dead — contract abandoned, no listings, no sales — a worthlessness or abandonment claim (IRC §165) may apply. It needs documentation of when and why the asset became worthless.
Services exist that buy provably-worthless NFTs for a nominal amount so you have an arm's-length sale on record. We don't do this and don't take custody of your NFTs — we just flag when a position is a candidate so you and your CPA can decide.
How are NFTs taxed? (plain-English)
A quick, original primer — general education, not tax advice.
Are NFTs even taxable?
In the U.S., the IRS treats NFTs as property. That means the tax rules that apply to selling stock or crypto generally apply to NFTs too: you have a cost basis (what you paid), and a gain or loss when you dispose of it.
When do I actually owe — or save — tax?
Simply buying and holding an NFT isn't a taxable event. Tax happens when you dispose of it: selling it for crypto or cash, swapping it for another NFT, or spending it. If you dispose of it for less than you paid, that's a capital loss you may be able to use.
Short-term vs. long-term — does it matter?
Yes. Held a year or less, gains are short-term (taxed like ordinary income). Held more than a year, they're long-term (lower rates). Losses net against gains of the same character first, so timing matters. Note: certain NFTs deemed 'collectibles' can face a higher long-term rate — another point for your CPA.
What counts as my cost basis?
Generally what you paid to acquire the NFT plus directly related costs — the purchase price, the mint price, and the gas fees to mint or buy. A free airdrop or free mint typically starts at a $0 (or gas-only) basis. Reconstructing this accurately from the chain is the hard part — and it's what the full report does.
How do losses actually help me?
Capital losses offset capital gains dollar-for-dollar. If your losses exceed your gains, you can generally deduct up to $3,000 against ordinary income per year and carry the rest forward to future years. That's why finding every real loss before year-end matters.
My NFT is worthless. Can I still claim it?
Possibly — but you usually need a realization event, not just a wallet full of dead JPEGs. That can mean selling it, abandoning it, or making a worthlessness claim with documentation. See the options above, and confirm the treatment with your CPA.
What about airdrops and free mints?
Receiving an NFT for free can be ordinary income at its fair market value when you receive it, which then becomes your basis. Many airdrops are worth ~$0 (or are outright spam), which is why we strip those out automatically before estimating your losses.
Does the wash-sale rule apply to NFTs?
The wash-sale rule that blocks re-buying a stock within 30 days of a loss is written for securities, and its application to NFTs is currently unsettled. Rules can change. Don't assume either way — flag any buy-back-soon plans to your CPA.
NFTs move between an owner's own wallets all the time, and cost basis follows the owner across those moves. Scanning a wallet that isn't yours — or only one of several wallets you use — gives an incomplete, misleading picture. For an accurate loss figure, scan the wallets you actually control (that's what the multi-wallet plans are for).
A sealed pack is itself an NFT with real value. The items revealed from a pack can also be valuable — but on-chain they often show a $0 cost basis, because the cost lives with the pack you opened, not the cards inside. The full report attributes pack costs where it can; don't assume a $0-basis reveal is worthless.