How are NFT sales taxed for a foreign-owned U.S. LLC? Are NFTs treated like other crypto?
My LLC mints and sells NFT art on OpenSea. I'm the artist and I'm based in Brazil. The NFTs are sold for ETH and I also earn royalties on secondary sales. I've made about $30,000 worth of ETH from primary sales and $5,000 in royalties this year.
Are NFTs taxed the same as Bitcoin and other crypto? I heard the IRS might treat some NFTs as "collectibles" with a higher tax rate. Does that apply to foreign owners? And what about the royalties from secondary sales — are those passive income or active business income?
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