Ubisoft’s first NFT plans make no sense

Re:Ubisoft’s first NFT plans make no sense by mminer237 on Wednesday December 08, 2021 @12:25PM (#29487628)

Are charities really going to provide receipts that their donated NF-what?s are worth $180,000? Is the market liquid enough for them to resell them? If it is, then it's no different than if A & B resold them and donated the money. If not, why would charities go along with it?

It's easy to find a small museum to donate small amounts of artwork to at an inflated value. But what charity wants NFTs?

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Re:Ubisoft’s first NFT plans make no sense by turkishmonky on Wednesday December 08, 2021 @12:30PM (#29487693)

With the money at stake, it would be pretty easy for both parties to tangentially set up a 501c3 whose purpose is to display gifted NFTs to the public

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Re:Ubisoft’s first NFT plans make no sense by mminer237 on Wednesday December 08, 2021 @12:49PM (#29487954)

I think that would be hard to get IRS approval for. Regardless, the right to display a work is its copyright, which is unrelated to NFTs anyway.

And donating intellectual property to charities with high claimed values isn't anything new. That's why in 2004 the American Jobs Creation Act required that any donated intellectual property be valued at the lesser of its cost basis and its fair market value. (See: 26 USC § 170(e))

So in your example, each would accrue a $10,000 income tax liability by their sale and be able to write off a $10,000 gain by their donation's basis, accomplishing nothing.

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Re:Ubisoft’s first NFT plans make no sense by negroni on Wednesday December 08, 2021 @03:36PM (#29490150)

> But what charity wants NFTs?

I attended an event last night in a museum where over $150k was raised for local Charities by auctioning off NFT Art. It will probably become more common than one might imagine.

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