Is it necessary to report cryptocurrency received as a gift for tax purposes?

3 answers

• Dec 17, 2021 · 3 years ago
  Yes, you are required to report cryptocurrency received as a gift for tax purposes. The IRS treats cryptocurrency as property, and any gains or losses from its sale or exchange are subject to taxation. When you receive cryptocurrency as a gift, the fair market value of the cryptocurrency at the time of the gift becomes your cost basis. If you later sell or exchange the gifted cryptocurrency, you will need to calculate your capital gains or losses based on the difference between the selling price and the cost basis. It is important to keep accurate records of the gift and its value for tax reporting purposes.
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• Dec 17, 2021 · 3 years ago
  Absolutely! Just like any other form of property, cryptocurrency received as a gift is subject to taxation. The IRS expects you to report the fair market value of the gifted cryptocurrency as income on your tax return. Failure to report cryptocurrency gifts can result in penalties and interest charges. It's always best to consult with a tax professional to ensure you are meeting your tax obligations and reporting your cryptocurrency gifts correctly.
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• Dec 17, 2021 · 3 years ago
  Hey there! When it comes to reporting cryptocurrency received as a gift for tax purposes, it's a definite yes. The IRS considers cryptocurrency as property, and any gains or losses from its sale or exchange are taxable events. So, if you received cryptocurrency as a gift, you'll need to report it on your tax return. The fair market value of the gifted cryptocurrency at the time of the gift will be your cost basis for future calculations. Remember, it's important to keep track of your crypto gifts and consult a tax professional for guidance on reporting them correctly.
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