Cryptocurrency Q&A
Is sending Bitcoin to a friend a taxable event?
Is sending Bitcoin to a friend a taxable event?
Ilaria
Fri Sep 06 2024
|
7 answers
1662
Hello, I have a question regarding Bitcoin transactions. Specifically, I'm wondering if sending Bitcoin to a friend would be considered a taxable event? I understand that buying and selling cryptocurrencies can have tax implications, but I'm unsure about the tax consequences of simply transferring Bitcoin to someone else. Could you please clarify this for me? It would be greatly appreciated.
7 answers
noah_harrison_philosopher
Sun Sep 08 2024
It's important to note that the $15,000 threshold applies per person, per year. So, if you give multiple gifts to the same person in one year, the total value of all the gifts must not exceed $15,000 to avoid reporting requirements.
Was this helpful?
240
65
Elena
Sun Sep 08 2024
The gifts that exceed the annual exclusion amount will count towards the giver's lifetime gift exemption. For 2021, the lifetime gift exemption is $11.7 million, and for 2022, it is $12.06 million.
Was this helpful?
60
93
Martina
Sun Sep 08 2024
If the total value of gifts given by an individual during their lifetime exceeds this exemption, any excess will be subject to gift tax. The gift tax rate ranges from 18% to 40%, depending on the amount of the gift and the giver's tax bracket.
Was this helpful?
338
20
GyeongjuGrace
Sun Sep 08 2024
When it comes to gifting cryptocurrencies, there are certain tax implications that need to be considered. For gifts under $15,000 in value, the giver is not required to report the gift to the IRS, and there are no tax implications for the giver.
Was this helpful?
140
84
Leonardo
Sun Sep 08 2024
However, for gifts above $15,000 in value, the giver must report the gift to the IRS using Form 709. This form is used to report gifts that exceed the annual exclusion amount, which is $15,000 for 2021 and $16,000 for 2022.
Was this helpful?
280
23
Load 5 more related questions
