How does the IRS treat gifted money in the form of digital assets?

1 answers

• Dec 26, 2021 · 3 years ago
  When the IRS treats gifted money in the form of digital assets, it is important to understand the tax implications and reporting requirements. The recipient of the gifted digital assets may need to report the value of the assets as income on their tax return. The IRS determines the value of the gifted digital assets based on the fair market value at the time of the gift. It is recommended to keep detailed records of the value of the assets and any subsequent transactions, as this information will be needed for tax purposes. Additionally, it is advisable to consult with a tax professional who specializes in digital assets to ensure compliance with IRS regulations and to understand any potential tax planning strategies that may be available.
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