Is the cost basis of a gifted cryptocurrency different from that of a purchased cryptocurrency?

6 answers

• AnwarProgrammerJul 29, 2022 · 3 years ago
  Yes, there is a difference between the cost basis of a gifted cryptocurrency and a purchased cryptocurrency. When you receive a gifted cryptocurrency, the cost basis is generally the fair market value of the cryptocurrency at the time of the gift. This means that if the cryptocurrency has appreciated in value since it was acquired by the person who gifted it to you, your cost basis will be higher than if you had purchased the cryptocurrency yourself. On the other hand, if the cryptocurrency has depreciated in value, your cost basis will be lower. It's important to keep track of the fair market value at the time of the gift for tax purposes.
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• San AMar 11, 2023 · 2 years ago
  Absolutely! The cost basis of a gifted cryptocurrency is determined by the fair market value at the time of the gift. This means that if the cryptocurrency has increased in value since it was acquired by the person who gave it to you, your cost basis will be higher. Conversely, if the cryptocurrency has decreased in value, your cost basis will be lower. It's crucial to accurately determine the fair market value at the time of the gift to ensure proper tax reporting.
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• coysAkseliAug 09, 2020 · 5 years ago
  Yes, the cost basis of a gifted cryptocurrency is different from that of a purchased cryptocurrency. When you receive a gifted cryptocurrency, the cost basis is typically the fair market value at the time of the gift. This means that if the cryptocurrency has appreciated in value, your cost basis will be higher. On the other hand, if the cryptocurrency has depreciated in value, your cost basis will be lower. It's important to consult with a tax professional to ensure accurate reporting of your cost basis and compliance with tax regulations.
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• Ahmad FadhoilJul 25, 2024 · a year ago
  The cost basis of a gifted cryptocurrency is indeed different from that of a purchased cryptocurrency. When you receive a gifted cryptocurrency, the cost basis is generally the fair market value at the time of the gift. This means that if the cryptocurrency has gained value since it was acquired by the person who gifted it to you, your cost basis will be higher. Conversely, if the cryptocurrency has lost value, your cost basis will be lower. It's crucial to keep track of the fair market value at the time of the gift to accurately calculate your cost basis for tax purposes.
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• e5gdirq486Sep 30, 2022 · 3 years ago
  Yes, the cost basis of a gifted cryptocurrency is different from that of a purchased cryptocurrency. When you receive a gifted cryptocurrency, the cost basis is typically the fair market value at the time of the gift. This means that if the cryptocurrency has appreciated in value, your cost basis will be higher. On the other hand, if the cryptocurrency has depreciated in value, your cost basis will be lower. It's important to consult with a tax professional to ensure accurate reporting of your cost basis and compliance with tax regulations. Please note that BYDFi, the digital currency exchange I work for, provides resources and guidance on tax reporting for cryptocurrency transactions.
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• Terkelsen PanduroApr 04, 2022 · 3 years ago
  The cost basis of a gifted cryptocurrency is different from that of a purchased cryptocurrency. When you receive a gifted cryptocurrency, the cost basis is generally the fair market value at the time of the gift. This means that if the cryptocurrency has appreciated in value, your cost basis will be higher. On the other hand, if the cryptocurrency has depreciated in value, your cost basis will be lower. It's important to keep track of the fair market value at the time of the gift for tax purposes. If you have any further questions about cost basis or tax reporting, feel free to reach out to our support team at BYDFi.
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