Intuit Inc. Chief Executive Officer Sasan Goodarzi warned that American investors in speculative assets such as Bitcoin, nonfungible tokens (NFTs), and actively traded equities on commission-free websites could face major losses due to this year’s tax bill.
“We’re gonna see a lot of that throughout tax season, where folks just didn’t understand what they did. And there’s a lot of millennials that really did a lot of trading without knowing what the implications are,” Goodarzi said in an interview with Bloomberg. “They are shocked as to how much money they’ve lost or how much they owe because they were in essence gambling with their money.”
Regulators have already hinted that they’re working aggressively to tax NFT owners. But, a concussion still surrounds the space since it will be complicated for the Internal Revenue Service to evaluate the purchase of tokens. For instance, NFTs — owners of unique digital assets — could face a tax rate as high as 37%.
Nonetheless, a tax code could be beneficial to Bitcoin investors, since it would help them claim deductions over losses that they reinvested within a certain period. On the other hand, people who invested in platforms like Robinhood Markets Inc. are still puzzled over whether they need to file and if they’d face large tax bills.
“What we are seeing is folks not understanding the implications of the income that they make,” he said. “We have over 50 million TurboTax customers. Anonymously, we can look at data patterns, provide insights. So that’s where the real sort of leverage comes in for us.”