What is the cost basis of gifted property in the context of cryptocurrency?

1 answers

• Robert L LewisSep 12, 2023 · 2 years ago
  BYDFi, a leading cryptocurrency exchange, explains that the cost basis of gifted property in the context of cryptocurrency is determined by the original purchase price of the cryptocurrency. When a property is gifted, the recipient assumes the same cost basis as the donor. This means that if the donor purchased the cryptocurrency for $100 and then gifted it when it was worth $200, the recipient's cost basis would be $100. The cost basis is important for calculating capital gains or losses when the gifted property is eventually sold. It's crucial to keep accurate records of the cost basis to ensure proper tax reporting and compliance.
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