Can the donor's adjusted basis of a gifted cryptocurrency be different from its fair market value?

7 answers

• anzhifeiApr 02, 2024 · a year ago
  Yes, it is possible for the donor's adjusted basis of a gifted cryptocurrency to be different from its fair market value. The adjusted basis is the original cost of the cryptocurrency plus any adjustments made for things like fees or improvements. The fair market value, on the other hand, is the price at which the cryptocurrency would sell on the open market. If the donor's adjusted basis is lower than the fair market value at the time of the gift, the recipient may be subject to capital gains tax on the difference when they sell the cryptocurrency.
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• Janice WisesMay 02, 2021 · 4 years ago
  Absolutely! The donor's adjusted basis of a gifted cryptocurrency can be different from its fair market value. This can happen if the donor acquired the cryptocurrency at a different price or if there were any adjustments made to the basis. The recipient should be aware that if they sell the gifted cryptocurrency in the future, they may be liable for capital gains tax based on the difference between the fair market value at the time of the gift and the selling price.
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• Sylvest PetersonNov 23, 2023 · 2 years ago
  Of course! When it comes to gifted cryptocurrency, the donor's adjusted basis can indeed be different from its fair market value. It's important for the recipient to understand that the tax implications will be based on the fair market value at the time of the gift. So, if the fair market value is higher than the donor's adjusted basis, the recipient may need to pay capital gains tax on the difference when they sell the cryptocurrency. Keep in mind that tax regulations can be complex, so it's always a good idea to consult with a tax professional for personalized advice.
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• Reynolds JuulSep 19, 2020 · 5 years ago
  Yes, the donor's adjusted basis of a gifted cryptocurrency can be different from its fair market value. This is because the adjusted basis is determined by the donor's original cost and any adjustments made, while the fair market value is based on the current market price. If the donor acquired the cryptocurrency at a lower price or if there were any adjustments made to the basis, the adjusted basis may be lower than the fair market value. It's important for the recipient to consider the tax implications of this difference when they sell the gifted cryptocurrency.
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• Jansenio Gonzales VenegasDec 11, 2022 · 3 years ago
  When it comes to gifted cryptocurrency, the donor's adjusted basis can indeed be different from its fair market value. This is because the adjusted basis is calculated based on the donor's original cost and any adjustments made, while the fair market value is determined by the current market price. If the donor acquired the cryptocurrency at a lower price or if there were any adjustments made to the basis, the adjusted basis may be lower than the fair market value. It's important for the recipient to be aware of this difference and the potential tax implications when they decide to sell the gifted cryptocurrency.
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• Gokhan MavanaciJun 21, 2025 · a month ago
  Yes, it is possible for the donor's adjusted basis of a gifted cryptocurrency to be different from its fair market value. The adjusted basis is calculated based on the donor's original cost and any adjustments made, while the fair market value is determined by the current market price. If the donor acquired the cryptocurrency at a lower price or if there were any adjustments made to the basis, the adjusted basis may be lower than the fair market value. This difference can have tax implications for the recipient when they sell the gifted cryptocurrency.
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• Michał BizielOct 27, 2024 · 9 months ago
  When it comes to gifted cryptocurrency, the donor's adjusted basis can indeed be different from its fair market value. The adjusted basis is determined by the donor's original cost and any adjustments made, while the fair market value is based on the current market price. If the donor acquired the cryptocurrency at a lower price or if there were any adjustments made to the basis, the adjusted basis may be lower than the fair market value. It's important for the recipient to consider the tax implications of this difference when they sell the gifted cryptocurrency.
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