How does the IRS treat gifted cryptocurrency for tax purposes?

3 answers

• May 29, 2022 · 3 years ago
  When it comes to gifting cryptocurrency, the IRS treats it as a taxable event. The recipient of the gift will need to report the fair market value of the gifted cryptocurrency as income on their tax return. The donor may also need to file a gift tax return if the value of the gifted cryptocurrency exceeds the annual gift tax exclusion amount. It's important to keep accurate records of the fair market value at the time of gifting to ensure proper reporting and compliance with IRS regulations.
  496

  248
• May 29, 2022 · 3 years ago
  Gifting cryptocurrency can have tax implications, as the IRS considers it a taxable event. The recipient of the gift will need to report the value of the cryptocurrency as income on their tax return. The donor may also need to file a gift tax return if the value of the gifted cryptocurrency exceeds a certain threshold. It's crucial to consult with a tax professional to understand the specific tax rules and obligations related to gifting cryptocurrency.
  456

  152
• May 29, 2022 · 3 years ago
  According to the IRS, gifting cryptocurrency is treated as a taxable event. The recipient of the gift is required to report the fair market value of the cryptocurrency as income on their tax return. The donor may also have to file a gift tax return if the value of the gifted cryptocurrency exceeds a certain limit. It's advisable to consult with a tax advisor or accountant to ensure compliance with IRS regulations and to accurately report the gifted cryptocurrency on tax returns.
  483

  121