Is Cryptocurrency Taxable When You Give or Receive It as a Gift?

[@AlexMartinez-jx4ff]

Can you send it to a friend out of the country?

[@VisaFan81]

Great info and right to the point! thanks!

[@Jcccc23]

You have the best crypto tax videos anywhere on KZbin man

[@gordonlawltd]

Thanks so much!

[@Nicktt24]

How does the gifter determine the cost basis when gifting only a fraction of their bitcoin holdings that were purchased on multiple dates? FIFO? Is HIFO an option?

[@gordonlawltd]

The IRS recognizes FIFO and Specific ID

[@Pajtim2023]

What about if somebody sent you US detail the value of that doesn't increase or decrease barely nothing it stays in same level Because I have a friend in Africa and he tried to send me money might need your help and I need some so I have some questions I can ask you

[@gordonlawltd]

Great question! You can chat with a member of our team if you visit our website in the description. We'd be happy to help.

[@nickrosati3167]

Is it a taxable event when you transfer crypto currencies between your own wallet? Thank you

[@gordonlawltd]

We see this question all the time! Transferring crypto between your own wallets is NOT taxable. As long as the crypto remains with you, it is a transfer. BUT, gas fees might be taxable, and you can’t deduct gas fees for self-transfers. Take a look @cryptolawteam on TikTok. We answer a ton of questions on there.

[@gordonlawltd]

@Danny Gas fees are treated like a "spend" or a sale of the ETH, generating a gain/loss.

[@allye4140]

‼️Hey, quick question im new to crypto and if someone send me crypto as a gift and i want to put it in my bank account as real cash do or even use it on PayPal or cash app to put money on those apps to be able to buy things in stores or online like Amazon or Walmart website do i have to pay taxes or am i okay im 20 yrs old and don't know anything about this stuff im just trying to stay out of trouble or doing something illegal ‼️

[@gordonlawltd]

Cashing out crypto is a taxable event! We break down everything in our crypto tax guide: gordonlaw.com/crypto-taxes-how-to-report/

[@allye4140]

@@gordonlawltd what if someone sent me crypto to my crypto wallet and I just left in in the wallet and didn't touch it, or sell anything or buy anything or invest into anything I just received the money into my wallet and let it sit their until ik what im dealing with ALSO THANK YOU FOR THE QUICK RESPONSE

[@gordonlawltd]

@@allye4140 if you simply hold, there SHOULD not be any implications. We have another video answering more questions: kzbin.info/www/bejne/ZnKoaml8iLmVosU

[@allye4140]

Okay thank you

[@allye4140]

Under what is not taxable it says Giving or receiving crypto as a gift (within limits) What does the within limits part means Because I won a giveaway and the rewards is 10,000 USD going to my crypto wallet On the website it said holding onto that USD will not be taxable but it says receiving the crypto isn't either ‼️within limits‼️what does the Website mean by that

[@xhulio24]

what if the person or organization you give crypto to is a ministry or church?

[@gordonlawltd]

If it's a qualified charity (501c3), that would be considered a donation rather than a gift; they're different for tax purposes. When you donate appreciated crypto (without converting it to anything else first), you won't be taxed on capital gains and it can also serve as a tax writeoff. Check out our Crypto Tax Guide for more info! ➡ gordonlawltd.com/crypto-tax-guide/

[@2much2see2]

Great content. Thank you. My wife and I always file a joint tax return. If I move some crypto from my wallet to my wife's wallet, is that considered an exchange, a gift, or does that fall under the "moving crypto from one wallet to another" with no taxable event having occurred since we always file jointly?

[@gordonlawltd]

Thanks James, glad you like our videos! To answer your question in typical lawyer fashion, it really depends on how much your accounts & coins intermingle. If your crypto IS considered separate, moving it from your exchange to your wife's could probably be considered a gift depending on the circumstances. If you'd like to discuss with our tax attorneys in more detail, you can call [phone] or go to gordonlawltd.com/contact/! (Disclaimer: This is not legal advice and this comment does not create an attorney-client relationship.)

[@anaflores7342]

If i gift crypto to 2 diferent people each 10000 , so a total of 20000 combined, should i file the 709 form? Please advise. Thanks in advance

[@Erickguitar16]

What if it's foreign?

[@gordonlawltd]

If you're receiving gifts from someone outside the US and the total gift amount is $100,000 or more in a year, then a disclosure needs to be filed.

[@gaiberortega1584]

Hi. What if a person who doesn't live in USA (non-resident) sends me frequently ( twice per month) an amount of Crypto (let's say a total of 4k a month). Do I have to report and pay that? (I am a US resident. )

[@gordonlawltd]

Hi Gaiber, if the total gift amount is $100,000 or more in a year, then a disclosure needs to be filed.

[@Chrisx1992]

Is this for US residents?

[@gordonlawltd]

Yes, all of our content is based on US tax law.

[@ihabahmed1132]

Can my wife send me money to my own bank account as a gift, and I use this money in my crypto trading?

[@Jcccc23]

Greetings . What if i get 5 dollars of bitcoin for signing up in Coinbase but I leave the coin on the exchange and don’t cash it out . Would I haha to report that to the irs

[@gordonlawltd]

That wouldn't be considered a gift, but rather ordinary income. You report the fair market value at the time of receipt.

[@ve2430]

What if the donee sell for a loss? I heard they do not need to file unless they realized profit. thanks

[@gordonlawltd]

When you have a loss, reporting could actually save you money: gordonlawltd.com/cryptocurrency-tax-faq/#report-crypto-losses

[@sbsharvani]

Hi, Very informative video, thanks for it. I would like to understand one scenario. Actually I from India and one of my relative stays in in US and i would like to give around 200 dollars worth of crypto to him. Could you please let me know how much tax he has to pay?

[@gordonlawltd]

Unfortunately, we’re not allowed to give specific legal/tax advice over the internet. You can set up a consultation by calling our office or visiting gordonlawltd.com.

[@xandabug]

Hey! So I am a US citizen wanting to gift to a friend who is a Japanese citizen. Will these US tax laws only apply to me? Will I have to pay Japanese taxes for some reason? I realize you mostly work in US taxes, but if you happen to know anything about this it would help a ton! :) Thank you!

[@gordonlawltd]

Hi Xandra, unfortunately I can't answer your question about Japanese taxes. We do USA only. Sorry!

[@JussinGomez]

Hi Gordon. If my buddy sends me 3 Bitcoin for free to my wallet at a spot price of 50k each , if I sell it the moment he gifts it, is that income? If I hold it and sell in 10 years, is that capital gains ?(assuming it goes up)

[@JussinGomez]

Can I receive Bitcoin like that and not be in trouble with the irs ?

[@gordonlawltd]

Hi Justin, when crypto is gifted, it is generally non taxable to the recipient. You inherit the original cost basis (so if the person who gave it to you initially paid $100, your cost basis is $100). If you sell it for more than that, you have a capital gain. This is perfectly legal within the gift threshold!

[@jeepcuz420]

@@gordonlawltd what needs to be done if you exceed the gift threshold and the doner is out of the country?

[@gordonlawltd]

@@jeepcuz420 We can assist with filing a gift tax return. Give us a call at [phone] or go to gordonlawltd.com/contact/

[@naveennoelj]

Hi Andrew, I was searching for a very long time for a video/help on how the Crypto Gift taxes work, but by far none have come close to what you have summarized in around 3 min. Thanks for the beautiful work and keep up the good work. Now, to my questions [Related to US] 1. In order to gift Cryptos, do I need to send crypto to my spouse's Wallet, or do I need to send a gift card? 2. Spouses can gift Cryptos Up to $16,000 per year to each other and dont have to report it. Allowed 16K per year per individual? If it's more than 16K that year, you'll need to fill out IRS Form 709. Provided you haven't exceeded the lifetime gift tax exemption of $11.7m (2021) or $12.06m (2022), you won't need to pay tax on gifting crypto. 3. The recipient of the gift may be subject to Capital Gains tax: e.g. If I [Sender] send 1ETH [$1,170] to my spouse, well under my 16K limit, and if she sells 1 ETH within 2 months for say $1,300, then she pays short-term capital gains tax on $1,200-$1,170 = $130 Is my understanding correct? 4. How are Stable Coins treated? Is it the same way as Cryptocurrencies? 5. Is it allowed that my spouse can take the crypto gift and convert it to a Cytpto Visa Debit Card and spend it? 6. Lastly, is there any template you have for record-keeping - Gift letter?