Does Gifting Cryptocurrency Trigger a Capital Gains Tax Event?

Generally, gifting cryptocurrency does not trigger a capital gains tax event for the giver, provided the gift amount is below a certain annual exclusion limit. The recipient of the gift assumes the original cost basis of the giver.

However, if the gift exceeds the annual exclusion, the giver may be required to file a gift tax return. The gain is only realized when the recipient later sells or disposes of the gifted crypto.