Charitable contributions and gifts of crypto and tax implications

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Avatar for Ashis546
2 years ago

Recipient of a gift: If you are lucky enough to receive crypto as a gift you are not likely to have a taxable event until you sell the crypto. When you do, your cost basis will be the same cost as the person who gifted it to you.

Person who gives the gift: You can gift crypto up to $15,000 per recipient per year without paying taxes. If your gift exceeds $15,000 per recipient, you are required to file a gift tax return.

Charitable donations: If you give crypto directly to a 501 (3) charitable organization, you can claim a charitable deduction equal to the fair market value of the donated cryptocurrency.

Coinbase customers

Coinbase customers can generate reports with all buys, sells, sends, and receives of all crypto associated with their Coinbase and Coinbase Pro accounts. Please remember: these reports only detail transactions associated with your Coinbase account, and will not be correct if you moved crypto from other wallets or exchanges as Coinbase doesn’t have information about your holdings on other exchanges and platforms. If you use other exchanges, you’ll need to download separate reports from them and reconcile.

Download your Coinbase transaction history report

Download your Pro transaction history report

For all transactions, you need the cost basis of each transaction — the amount in dollars that you spent originally to buy it — and the amount in dollars it was worth when you sold it. This will be used to calculate your gains and losses.

Source link: https://www.coinbase.com/learn/tips-and-tutorials/crypto-and-bitcoin-taxes-US?from=for_you

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