What are the tax implications of gifting cryptocurrency to avoid capital gains?

3 answers

• Mannat JainJun 26, 2020 · 5 years ago
  When gifting cryptocurrency, it's important to understand the tax implications. According to the IRS, cryptocurrency is treated as property for tax purposes. If you gift cryptocurrency, you may still be liable for capital gains tax if the value of the cryptocurrency has increased since you acquired it. The recipient of the gift will also have to consider the tax consequences when they decide to sell or exchange the gifted cryptocurrency. It's recommended to consult with a tax professional to fully understand the tax implications of gifting cryptocurrency.
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• Binyam KibromJul 15, 2021 · 4 years ago
  Gifting cryptocurrency can be a way to avoid capital gains tax, but it's not without its tax implications. The IRS views cryptocurrency as property, so when you gift cryptocurrency, it's considered a taxable event. If the value of the cryptocurrency has increased since you acquired it, you may be subject to capital gains tax. Additionally, the recipient of the gift will need to report the gift and consider the tax consequences when they decide to sell or exchange the cryptocurrency. It's always a good idea to consult with a tax professional to ensure compliance with tax laws.
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• Tiago Pereira CardosoOct 14, 2022 · 3 years ago
  Gifting cryptocurrency to avoid capital gains can have tax implications. The IRS treats cryptocurrency as property, so when you gift cryptocurrency, it's considered a taxable event. If the value of the cryptocurrency has increased since you acquired it, you may be liable for capital gains tax. The recipient of the gift will also need to consider the tax consequences when they decide to sell or exchange the cryptocurrency. It's important to consult with a tax professional to understand the specific tax implications and ensure compliance with tax laws.
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