from Hacker News

Show HN: A smart contract and website to tax loss harvest your worthless NFTs

by wiidude32 on 12/5/22, 12:08 PM with 7 comments

• by wiidude32 on 12/5/22, 2:04 PM

  This past summer, we were super frustrated with how difficult it was to legitimately dispose of worthless NFTs in order to harvest losses on these assets for tax minimization. There's no real marketplace for worthless NFTs, but investors are sitting on thousands of dollars of tax savings if they had a simple way to harvest their NFT losses.

  From this pain-point, an idea was born!

  So, we started working on a smart contract that would buy any NFT for a de minimis amount of ETH, thus allowing investors to lock in their losses and reduce their 2022 tax bill.

  Would love to hear any feedback!

• by mduggles on 12/5/22, 3:45 PM

  If you told me the story of NFTs was a joke on Silicon Valley I’d say you were being over the top.

• by seanhunter on 12/5/22, 6:55 PM

  Doesn't seem a very good idea to use anything like this (or call any method actually) except on NFTs where you have verified the code.

  When you sign to authorize the contract to buy your worthless NFT, the contract will call something like safeTransfer(), but the NFT implementation of that method might actually just do something bad eg empty out your wallet.

  This is a reasonably common means of crypto theft: drop an NFT into someone's wallet with malicious transfer code that actually steals their assets when they try to transfer it.

• by siftrics on 12/5/22, 3:07 PM

  If you burned it, couldn't you still count it as a tax loss?