📝 Description
This tutorial explains how to label your Play-and-Earn (also known as Play-to-Earn) game operations on Waltio.
NFT/crypto rewards from play-to-earn games are considered to have been obtained free of charge. The acquisition value of the token or NFT will therefore be 0.
⚠️ Warnings
There is legal ambiguity regarding the taxation of NFTs (coverage by specific tax regulations may vary).
Waltio treats NFTs like cryptocurrencies: valuation is done at the date of entry (date of purchase or receipt).
📂 How to Label Your Play-and-Earn Operations?
Example 1 — Withdrawing rewards to an exchange If you withdraw 1 ETH earned in a game and deposit it on Binance, label this deposit as "Other income".
Example 2 — Selling an NFT If you sell an NFT for 2,000 USDT deposited on Binance, label this deposit as "Other income".
💡 Additional Information
For more information about NFT video game taxation, visit the Waltio blog.
For more information about investment income (staking, farming, cashback, play-to-earn), consult the relevant article in your help center.