Research on Tax Implications

Researched tax implications for student athletes engaging in NIL activities. Under existing IRS law, any compensation for which a student receives a form 1099, including for NIL payments, should be reflected in their adjusted gross income (AGI) for the applicable base year as reported on their Free Application for Federal Student Aid (FAFSA). There are also potential implications for grants and/or scholarships. The impact of name, image, and likeness (NIL) activities on college grants can vary depending on the specific circumstances and policies of the institution. Additional revenue potential could potentially reduce the financial need for certain student-athletes, potentially impacting the amount of grant assistance they require. NFTs, or Non-Fungible Tokens, are a type of digital asset that represent ownership of a unique item or piece of content, such as artwork, music, videos, virtual real estate, or even tweets. Unlike cryptocurrencies like Bitcoin or Ethereum, which are fungible and can be exchanged on a like-for-like basis, each NFT has its own distinct value and cannot be replaced or exchanged equivalently. NFTs are typically built on blockchain technology, which ensures their authenticity, provenance, and scarcity. The tax implications of NFTs can be complex and vary depending on various factors, including the jurisdiction and specific circumstances of the transaction. For example, if you receive royalties or licensing fees for your NFTs, those earnings may be subject to income tax. The tax treatment can vary depending on whether the income is considered capital gains or ordinary income, so it's important to consult with a tax advisor to determine the specific rules that apply to your situation.