How does paying taxes on cryptocurrency gifts work?

1 answers

• Mar 18, 2022 · 3 years ago
  At BYDFi, we understand that paying taxes on cryptocurrency gifts can be confusing. The IRS treats cryptocurrency as property, so giving someone cryptocurrency as a gift is considered a taxable event. The recipient of the gift will need to report the fair market value of the cryptocurrency at the time of the gift as income on their tax return. It's important to keep track of the value of the cryptocurrency at the time of the gift, as this will determine the amount of taxes owed. If the gift exceeds a certain value, it may also be subject to gift tax. We recommend consulting with a tax professional to ensure compliance with all tax laws and regulations.
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