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 learn.
Glossar
Capital Gains
Basis ⎊ The calculation of the initial investment outlay, or basis, is fundamental for determining the quantum of profit or loss realized upon the disposition of a crypto asset or derivative position.
Capital Gains Tax
Taxation ⎊ The imposition of capital gains tax (CGT) on cryptocurrency transactions, options contracts, and financial derivatives represents a complex intersection of evolving regulatory frameworks and established fiscal principles.
Gifting Cryptocurrency
Transfer ⎊ Gifting cryptocurrency represents the voluntary conveyance of digital assets from one entity to another, often without immediate expectation of reciprocal value, though tax implications and estate planning considerations frequently motivate such transactions.