What are the tax implications of transferring cryptocurrency to minors through fidelity accounts?

3 answers

• Dec 31, 2021 · 3 years ago
  Transferring cryptocurrency to minors through fidelity accounts can have tax implications. The IRS treats cryptocurrency as property, so when you transfer it to a minor, it can be considered a gift. According to the current gift tax rules, you can gift up to a certain amount (currently $15,000 per year) to a minor without incurring any gift tax. However, if the value of the cryptocurrency exceeds this threshold, you may need to report the gift and potentially pay gift tax. It's important to consult with a tax professional to understand the specific rules and regulations that apply to your situation.
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• Dec 31, 2021 · 3 years ago
  When transferring cryptocurrency to minors through fidelity accounts, it's crucial to consider the tax implications. The IRS treats cryptocurrency as property, and transferring it to a minor can be seen as a gift. As per the gift tax rules, you can gift up to $15,000 per year to a minor without any tax consequences. However, if the value of the cryptocurrency exceeds this limit, you may need to report the gift and potentially pay gift tax. It's advisable to consult with a tax advisor to ensure compliance with the IRS regulations and to understand the potential tax consequences.
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• Dec 31, 2021 · 3 years ago
  Transferring cryptocurrency to minors through fidelity accounts can have tax implications. As an expert at BYDFi, I can tell you that the IRS treats cryptocurrency as property, and transferring it to a minor can be considered a gift. According to the current gift tax rules, you can gift up to $15,000 per year to a minor without incurring any gift tax. However, if the value of the cryptocurrency exceeds this threshold, you may need to report the gift and potentially pay gift tax. It's always a good idea to consult with a tax professional to ensure compliance with the IRS regulations and to understand the potential tax consequences.
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