How does the IRS treat cryptocurrency received as a gift?

3 answers

• Dec 14, 2021 · 3 years ago
  When you receive cryptocurrency as a gift, the IRS considers it as taxable income. The fair market value of the cryptocurrency at the time of the gift is used to determine the amount of income you need to report. It's important to keep track of the value of the cryptocurrency at the time of the gift, as it will be used for tax purposes.
  338169
• Dec 14, 2021 · 3 years ago
  If you receive cryptocurrency as a gift, you will need to report it on your tax return. The IRS treats cryptocurrency as property, so the rules for reporting and paying taxes on cryptocurrency gifts are similar to those for other types of property. Make sure to consult with a tax professional to ensure you accurately report your cryptocurrency gifts.
  352118
• Dec 14, 2021 · 3 years ago
  According to the IRS, cryptocurrency received as a gift is subject to taxation. The fair market value of the cryptocurrency at the time of the gift is considered taxable income. It's important to keep records of the gift and the value of the cryptocurrency at the time of the gift for tax purposes. If you have any questions or need assistance with your cryptocurrency taxes, you can consult with a tax professional or use tax software like BYDFi to help you navigate the process.
  480120