Can the cost basis of gifted property be used for calculating taxes on cryptocurrency gains?

7 answers

• lukman chowdhuryFeb 21, 2021 · 5 years ago
  Yes, it is possible to use the cost basis of gifted property when calculating taxes on gains from cryptocurrency. However, the IRS treats gifted property differently from purchased property when it comes to cryptocurrency gains. While the cost basis of purchased property is usually the purchase price, the cost basis of gifted property is the fair market value at the time of the gift. It's important to keep track of the fair market value of the gifted property and use it as the cost basis for calculating taxes on cryptocurrency gains.
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• kmkmFeb 13, 2025 · 6 months ago
  Absolutely! The cost basis of gifted property can be used for calculating taxes on cryptocurrency gains. The IRS considers gifted property as a transfer of ownership without any exchange of money, so the cost basis for tax purposes is the fair market value of the property at the time of the gift. This means that if you received cryptocurrency as a gift, you would use the fair market value of the gifted cryptocurrency as the cost basis for calculating your taxes on any gains.
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• Reina BaginaOct 21, 2020 · 5 years ago
  Yes, you can use the cost basis of gifted property for calculating taxes on cryptocurrency gains. According to the IRS, the cost basis of gifted property is the fair market value at the time of the gift. This applies to both physical property and digital assets like cryptocurrency. So, if you received cryptocurrency as a gift, you would use the fair market value of the gifted cryptocurrency as the cost basis for calculating your taxes on any gains. It's important to keep accurate records of the fair market value at the time of the gift.
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• SinhaOct 09, 2024 · 10 months ago
  When it comes to calculating taxes on cryptocurrency gains, the cost basis of gifted property can indeed be used. The IRS treats gifted property differently from purchased property, and the cost basis for tax purposes is the fair market value at the time of the gift. So, if you received cryptocurrency as a gift, you would use the fair market value of the gifted cryptocurrency as the cost basis for calculating your taxes on any gains. Make sure to keep proper documentation of the fair market value at the time of the gift to support your calculations.
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• Justin Simon GarciaMay 09, 2023 · 2 years ago
  The cost basis of gifted property can be used for calculating taxes on cryptocurrency gains. The IRS treats gifted property differently from purchased property, and the cost basis for tax purposes is the fair market value at the time of the gift. This applies to all types of property, including cryptocurrency. If you received cryptocurrency as a gift, you would use the fair market value of the gifted cryptocurrency as the cost basis for calculating your taxes on any gains. Remember to keep accurate records of the fair market value at the time of the gift to comply with IRS regulations.
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• Bui HowardMar 24, 2022 · 3 years ago
  Yes, the cost basis of gifted property can be used for calculating taxes on cryptocurrency gains. The IRS considers gifted property as a transfer of ownership without any exchange of money, and the cost basis for tax purposes is the fair market value at the time of the gift. This means that if you received cryptocurrency as a gift, you would use the fair market value of the gifted cryptocurrency as the cost basis for calculating your taxes on any gains. It's important to accurately determine the fair market value at the time of the gift to ensure compliance with IRS regulations.
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• Skaarup PatrickFeb 04, 2021 · 5 years ago
  When it comes to calculating taxes on cryptocurrency gains, the cost basis of gifted property can be used. The IRS treats gifted property differently from purchased property, and the cost basis for tax purposes is the fair market value at the time of the gift. So, if you received cryptocurrency as a gift, you would use the fair market value of the gifted cryptocurrency as the cost basis for calculating your taxes on any gains. Remember to keep proper documentation of the fair market value at the time of the gift to support your tax calculations.
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