NFT gains as a source of funds

You can declare anything you want as SOF. The question is whether the person asking will accept the answer.

This is a type of money laundering that can and does work if it's small scale. For 100,000 USD it might work if you execute it properly as a one-off.

But beyond that, there's an increasing chance someone ”” such as a bank, a tax authority, or whoever else has an interest in your SOF ”” digs a little deeper. If they see that you're the only (significant) investor in some memecoin and it's a recurring pattern and/or high amounts, it can stick around.

It's money laundering, though. The repercussions range from loss of accounts (potentially with a loss of funds) to prison time.