How do capital gains taxes apply to cryptocurrency gifts?

3 answers

• Dec 26, 2021 · 3 years ago
  When you give someone cryptocurrency as a gift, it's important to understand that it can trigger capital gains taxes. The IRS treats cryptocurrency as property, so when you transfer it to someone else, it's considered a taxable event. The amount of tax you'll owe depends on the fair market value of the cryptocurrency at the time of the gift and the cost basis of the cryptocurrency. If the fair market value is higher than the cost basis, you'll have a capital gain and may owe taxes on that gain. It's always a good idea to consult with a tax professional to ensure you're properly reporting and paying any taxes owed on cryptocurrency gifts.
  645323
• Dec 26, 2021 · 3 years ago
  Cryptocurrency gifts are subject to capital gains taxes. Just like with any other property, when you give someone cryptocurrency, it's considered a taxable event. The tax liability is based on the fair market value of the cryptocurrency at the time of the gift and the cost basis of the cryptocurrency. If the fair market value is higher than the cost basis, you'll have a capital gain and may owe taxes on that gain. It's important to keep accurate records of the cost basis and fair market value to properly calculate and report your capital gains taxes. Consulting with a tax professional is recommended to ensure compliance with tax laws and regulations.
  658220
• Dec 26, 2021 · 3 years ago
  When you give cryptocurrency as a gift, you need to be aware of the potential capital gains tax implications. Cryptocurrency is treated as property by the IRS, so transferring it to someone else is considered a taxable event. The tax liability is determined by the fair market value of the cryptocurrency at the time of the gift and the cost basis of the cryptocurrency. If the fair market value is higher than the cost basis, you may have a capital gain and could be subject to capital gains taxes. It's crucial to keep accurate records and consult with a tax professional to ensure you're meeting your tax obligations when gifting cryptocurrency.
  648162