How do capital gains on gifted cryptocurrencies affect my tax liability?

3 answers

• Akshdeep SinghMay 21, 2022 · 4 years ago
  When you receive gifted cryptocurrencies, the tax implications can be a bit complex. In general, the IRS treats gifted cryptocurrencies as property, so any capital gains you make from selling or exchanging them will be subject to capital gains tax. The amount of tax you owe will depend on how long you held the gifted cryptocurrencies before selling or exchanging them. If you held them for less than a year, the gains will be considered short-term and taxed at your ordinary income tax rate. If you held them for more than a year, the gains will be considered long-term and taxed at a lower rate. It's important to keep track of the fair market value of the gifted cryptocurrencies at the time you received them, as this will be used to determine your cost basis when calculating capital gains. Consult with a tax professional for specific advice based on your situation.
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• Loralee MaynardMay 08, 2022 · 4 years ago
  Gifted cryptocurrencies can have tax implications when it comes to capital gains. The IRS treats cryptocurrencies as property, so any gains you make from selling or exchanging them will be subject to capital gains tax. The tax rate will depend on how long you held the gifted cryptocurrencies before selling or exchanging them. If you held them for less than a year, the gains will be taxed at your ordinary income tax rate. If you held them for more than a year, the gains will be taxed at a lower rate. It's important to keep track of the fair market value of the gifted cryptocurrencies at the time you received them, as this will be used to calculate your capital gains. It's always a good idea to consult with a tax professional to ensure you're meeting your tax obligations.
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• mtcarpenterMar 03, 2024 · 2 years ago
  When it comes to capital gains on gifted cryptocurrencies, the tax implications can be significant. The IRS considers cryptocurrencies as property, so any gains you make from selling or exchanging them will be subject to capital gains tax. The tax rate will depend on how long you held the gifted cryptocurrencies before selling or exchanging them. If you held them for less than a year, the gains will be taxed at your ordinary income tax rate. If you held them for more than a year, the gains will be taxed at a lower rate. It's important to keep track of the fair market value of the gifted cryptocurrencies at the time you received them, as this will be used to calculate your capital gains. Remember to consult with a tax professional to ensure you're complying with the tax laws in your jurisdiction.
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