What is the cost basis for gifted cryptocurrency?

1 answers

• Potter MooreMar 29, 2023 · 2 years ago
  When it comes to gifted cryptocurrency, the cost basis refers to the original value of the cryptocurrency at the time it was gifted to you. This value is used to calculate the taxable gain or loss when you sell or dispose of the gifted cryptocurrency. If the value of the cryptocurrency has gone up since it was gifted to you, the cost basis is the fair market value at the time of the gift. If the value has gone down, the cost basis is the lower fair market value or the donor's basis. It's crucial to understand the cost basis to properly handle your taxes and avoid any potential issues.
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