How does the IRS treat gifted money in the context of cryptocurrencies?

3 answers

• May 06, 2022 · 3 years ago
  When someone gifts cryptocurrency, it is considered a taxable event. The IRS treats gifted money in the context of cryptocurrencies as a transfer of property, subject to capital gains tax. The recipient of the gift will need to determine the fair market value of the cryptocurrency at the time of the gift and report it as income. If the recipient sells the gifted cryptocurrency, they may be subject to capital gains tax on any appreciation since the time of the gift.
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• May 06, 2022 · 3 years ago
  Gifting cryptocurrency can have tax implications. The IRS treats gifted money in the context of cryptocurrencies as a taxable event. The recipient of the gift needs to be aware of their tax obligations and report the fair market value of the cryptocurrency as income. If the recipient decides to sell the gifted cryptocurrency, they may be liable for capital gains tax on any profits made.
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• May 06, 2022 · 3 years ago
  When it comes to gifting cryptocurrency, the IRS has specific rules. Gifted money in the context of cryptocurrencies is treated as a transfer of property, which means it is subject to taxation. The recipient of the gift must report the fair market value of the cryptocurrency as income. If the recipient decides to sell the gifted cryptocurrency, they may be responsible for paying capital gains tax on any gains made since the time of the gift. It's important to consult a tax professional for guidance on how to properly handle the tax implications of gifting cryptocurrency.
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