Can the cost basis of gifted cryptocurrency be adjusted?

3 answers

• Junior VasconcellosMar 23, 2024 · 2 years ago
  Yes, the cost basis of gifted cryptocurrency can be adjusted. When cryptocurrency is gifted, the recipient inherits the cost basis from the giver. However, if the recipient decides to sell the gifted cryptocurrency, they can adjust the cost basis to the fair market value at the time of the gift. This adjustment is important for calculating capital gains or losses for tax purposes. It's recommended to consult with a tax professional for specific guidance on how to properly adjust the cost basis of gifted cryptocurrency.
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• Hriday SarkarMay 23, 2022 · 4 years ago
  Absolutely! The cost basis of gifted cryptocurrency can be adjusted to the fair market value at the time of the gift. This adjustment allows the recipient to accurately calculate their capital gains or losses when they decide to sell the gifted cryptocurrency. It's important to keep proper documentation of the gift and the fair market value at the time of the gift to support the adjusted cost basis. Remember to consult with a tax advisor for personalized advice based on your specific situation.
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• Inderjit Singh GillSep 16, 2023 · 3 years ago
  Yes, the cost basis of gifted cryptocurrency can be adjusted. This adjustment is necessary to accurately calculate the capital gains or losses when the recipient sells the gifted cryptocurrency. It's important to note that the adjusted cost basis is based on the fair market value at the time of the gift, not the original cost basis of the giver. Consult with a tax professional to ensure you properly adjust the cost basis and comply with tax regulations.
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