How does the cost basis of a gifted cryptocurrency affect taxes?

3 answers

• AyurseshaMar 14, 2023 · 2 years ago
  When you receive a gifted cryptocurrency, the cost basis is the value of the cryptocurrency at the time of the gift. This will be used to determine your capital gains or losses when you sell or dispose of the cryptocurrency. It's important to keep track of the cost basis as it will affect your tax liability. Make sure to consult with a tax professional for specific guidance on reporting gifted cryptocurrency on your tax return.
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• Safia ashrafDec 04, 2023 · 2 years ago
  The cost basis of a gifted cryptocurrency is crucial for determining your tax obligations. It represents the value of the cryptocurrency at the time of the gift and will be used to calculate your capital gains or losses. If the value of the cryptocurrency has increased since the time of the gift, you may have to pay taxes on the appreciation when you sell or dispose of it. On the other hand, if the value has decreased, you may be able to claim a capital loss. Remember to keep accurate records of the cost basis and consult with a tax advisor for personalized advice.
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• Newell FoldagerOct 01, 2021 · 4 years ago
  When you receive a gifted cryptocurrency, the cost basis is the value of the cryptocurrency at the time of the gift. This is important because it determines your capital gains or losses when you sell or dispose of the cryptocurrency. For example, if you received 1 Bitcoin as a gift when it was worth $10,000 and later sold it for $20,000, your capital gain would be $10,000. However, if the value of the gifted cryptocurrency has decreased at the time of sale, you may be able to claim a capital loss. It's essential to keep accurate records of the cost basis to ensure you report your taxes correctly.
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