“I wish it worked that way,” said Kemmerer, but he sees clients regularly get hosed because they misunderstood how it works. “This one guy had acquired over 100 ethereum early on, in 2015, back when it was still cheap,” he said. Then, in 2021, he sold some of his Ethereum to buy non-fungible tokens (NFTs), thinking it was all in Magic Crypto Money Land. “He racked up over a $100,000 tax bill. It was a shock.”
The 7 Types of Crypto Tax Nightmares
