What is the adjusted basis of a gift in the context of cryptocurrency?

1 answers

• McWilliams HolgersenApr 19, 2023 · 3 years ago
  Hey there! So, when you receive cryptocurrency as a gift, the adjusted basis is basically the value of that cryptocurrency at the time it was given to you. This adjusted basis is important because it determines how much tax you'll owe when you sell or dispose of the gifted cryptocurrency. If the value of the cryptocurrency has gone up since you received it, you might have to pay capital gains tax on the difference between the adjusted basis and the selling price. On the other hand, if the value has gone down, you might be able to claim a capital loss. Just remember to keep track of the adjusted basis and consult with a tax professional to make sure you're doing everything right!
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