SHAUN WILSON

PURCHASING NFT ART

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NFT art is a fantastic emergent collectable that's changed the way the art world considers money and fungibility. The following is a simple and honest reflection on collecting NFT art as three types: personal, investment, and SMSF investment.  As I’m an Australian artist, national collectors are subject to Australian tax laws governed by the ATO. If you are in another country, check with your national tax laws and accountant for similar effects.

 

Collecting my NFT art

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Everyone has different reasons for collecting NFT art so I purposely began listing mine with realistic affordability of 0.1 ETH Polygon to generate potential future growth. At the time of publication, my NFT art starts at $310 AUD [Feb 2022] each which is the same price if I was to sell the equivalent as a digital asset on a USB flash drive. 

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Why collect my NFT art?

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• 30 year track record of 200+ screenings and exhibitions inter/nationally

• Affordable starting price in line with my physical and digital art sales 

• Sales strategy eliminates devaluing of physical art sales

• Unique artwork recognised globally in the field

• Minted on Polygon blockchain with a lower environmental impact than Ethereum

• All artworks have frozen metadata and can’t be changed later on

• Adds cultural value to your existing art collection

• All of my NFTs are individually made by hand not created with AI and are individually uploaded manually
   

Costs and hidden costs
 

When purchasing NFT art you would have already paid money to have your base currency converted to crypto, fees involved to start a wallet and other gas fees involved to begin trading. My Polygon NFTs have their metadata frozen i.e not lazy minted and my ETH NFTs are centralised. If you are collecting NFTs in general, you have to as a general word consider these extra costs:
 

• Gas fees

• After-sale lazy minting fees 

• Transaction fees 

• Bank transfer fees

• Crypto exchange fees
   

Personal collecting
 

Anyone with a crypto wallet and currency can purchase NFT art. You can own it forever and display it on any capable digital device. There are now display options for a made-for-purpose (MFP) surface or wall mount screens that can display the NFT art like you would a painting or 2D image on a wall. You can resell your NFT art at any time for a higher price than you purchased at, enabling a profit base trade. As with any art collecting, it can also be about the love of collecting art because you feel a connection with what you are purchasing.
 

Investment collecting
 

Investment art collecting strategies can work on the same principle as physical art collecting. This includes a balanced or high-risk portfolio, customised boutique collecting to suit your individual investment preferences, and blue-chip investment to capitalise on low-risk investment.
 

SMSF collecting
 

You can now consider NFT art as a potential SMSF investment but before you commit to purchase we suggest that you first speak with your adviser.

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The last word
 

No matter what type of art collector you are, NFT art is a rewarding and innovative medium that is changing how we collect and think about collecting art. Consider my NFT art for your collection where I’d be happy to answer any questions you may have.
 

Happy collecting! - SW

NOTE: All stated perspectives are not specified legal advice and you should take these suggestions as such to discuss further with your accountant, lawyer, or adviser before committing to purchase.

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