How does the IRS treat the sale of gifted cryptocurrency?

3 answers

• May 06, 2022 · 3 years ago
  When it comes to selling cryptocurrency that was received as a gift, the IRS treats it as a taxable event. This means that you may be subject to capital gains tax on the difference between the fair market value of the cryptocurrency at the time of the gift and the sale price. It's important to keep records of the gift and the sale transaction to accurately report the capital gains on your tax return. Consult with a tax professional for specific guidance on your situation.
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• May 06, 2022 · 3 years ago
  Selling gifted cryptocurrency is not exempt from taxation by the IRS. The IRS considers the sale of gifted cryptocurrency as a taxable event, and you may be required to report any capital gains on your tax return. It's crucial to keep track of the fair market value of the cryptocurrency at the time of the gift and the sale price to accurately calculate your capital gains. Seeking advice from a tax professional is recommended to ensure compliance with IRS regulations.
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• May 06, 2022 · 3 years ago
  According to the IRS, selling gifted cryptocurrency is subject to taxation. The fair market value of the cryptocurrency at the time of the gift is considered the cost basis for calculating capital gains. When you sell the gifted cryptocurrency, you will need to report any capital gains on your tax return. It's essential to maintain accurate records of the gift and the sale transaction to fulfill your tax obligations. Consider consulting with a tax professional for personalized advice on reporting cryptocurrency sales.
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