How does the IRS treat free crypto received as gifts or airdrops for tax purposes?

3 answers

• Nov 24, 2021 · 3 years ago
  When it comes to free cryptocurrency received as gifts or through airdrops, the IRS treats it as taxable income. This means that you need to report the fair market value of the crypto at the time of receipt as part of your income for tax purposes. Make sure to keep track of the value of the crypto at the time of receipt, as it will be used to determine your tax liability. It's important to consult with a tax professional to ensure you comply with all IRS regulations and accurately report your crypto income.
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• Nov 24, 2021 · 3 years ago
  Receiving free crypto as gifts or through airdrops may seem like a great deal, but don't forget about the tax implications. The IRS considers it as taxable income, so you'll need to report it on your tax return. Keep in mind that the fair market value of the crypto at the time of receipt is what matters for tax purposes. If you're unsure about how to handle this, it's always a good idea to consult with a tax professional who specializes in cryptocurrency taxation.
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• Nov 24, 2021 · 3 years ago
  According to the IRS, free cryptocurrency received as gifts or through airdrops is subject to taxation. The fair market value of the crypto at the time of receipt needs to be reported as income on your tax return. It's important to keep accurate records of the value of the crypto at the time of receipt, as this will be used to determine your tax liability. If you're unsure about how to handle the tax implications of free crypto, consider consulting with a tax professional who can guide you through the process.
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