You can find these toggles under Settings → Tax → Advanced → Capital gains, directly under Crypto-to-crypto trades. They decide whether trades involving NFTs carry over your original cost basis or are taxed. The default depends on your tax jurisdiction. These settings can change your tax liability, so check with your accountant or tax professional before you change them.

Where to find them

The two rows only appear when Crypto-to-crypto trades is on. If crypto-to-crypto trades are taxed, every trade involving an NFT is taxed too, so there is nothing to choose.

• Crypto-to-NFT trades — trading a coin for an NFT, or an NFT for a coin (for example ETH → NFT, or NFT → ETH).

• NFT-to-NFT trades — trading one NFT for another NFT.

Toggle on

The trade is non-taxable. Your original cost basis carries over to the asset you receive, and no gain or loss is realised until you later dispose of it.

Toggle off

The trade is taxed. Summ records a disposal of the asset you gave up, realising a gain or loss, and a new acquisition of the asset you received at its market value.

In the example below both toggles are off. Each trade realises a gain of €500: ETH → NFT-A, NFT-A → NFT-B, and NFT-B → ETH.

Trades with more than one asset on a side

Summ checks every asset you give up against every asset you receive. If any pair is not covered by a toggle that is on, the whole trade is taxed. For example, trading ETH and NFT-A for NFT-B contains a coin → NFT pair and an NFT → NFT pair, so it only carries over your cost basis when both toggles are on. Fees are not part of this check.

What still applies from Crypto-to-crypto trades

• The start date of crypto-to-crypto relief applies to NFT trades too. Trades before it are taxed.

• Any currency you treat as fiat for crypto-to-crypto trades makes the trade taxable.

• Trades involving fiat or stocks are always taxed. Crypto-to-crypto relief only covers crypto.

Defaults by country

These defaults apply when you create a new account. You can change either toggle at any time, and your reports recalculate.

How Summ decides what is an NFT

An asset counts as an NFT when it has a token ID from its collection, which is how NFTs import from wallets and marketplaces. If an asset has been marked as an NFT or as not an NFT in Summ, that choice is used instead.

Related: Tax toggle - Treat crypto to crypto trades as non-taxable disposals · NFT Guide

Still need help?

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