Topic · Taxes and estates
Do you pay tax on gifted crypto?
- Quick fact 1
The IRS virtual currency FAQ explains that receiving crypto as a bona fide gift is generally not income to the recipient.
Source: IRS: Frequently asked questions on virtual currency transactions
- Quick fact 2
The IRS FAQ explains how basis works for gifted virtual currency.
Source: IRS: Frequently asked questions on virtual currency transactions
- Quick fact 3
Gift tax rules, including the annual exclusion, are explained in the IRS gift tax FAQ.
The short lesson
Giving or receiving crypto as a gift follows the general U.S. gift rules, plus crypto’s property treatment.
If you receive a gift
- A true gift is generally not income to you when you receive it.
- When you later sell, your cost basis usually carries over from the giver. There are special rules if the value fell below the giver’s basis.
- Ask the giver for their purchase date and basis. Write it down.
If you give a gift
- Giving is generally not a sale, so it usually does not create a gain for you.
- If your gifts to one person in a year are above the IRS annual exclusion amount, you may need to file a gift tax return. Owing tax is less common because of lifetime exemptions. Check the current amounts on IRS.gov.
Watch out
“Gifts” requested by online friends or love interests are a scam pattern. See pig butchering scams.
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Related terms
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More in Taxes and estates
Common questions
Is receiving crypto as a gift taxable?
Generally not when received. A later sale can be.
Do I need to file a gift tax return?
Possibly, if your gifts to one person exceed the annual exclusion. Check IRS.gov.
What basis do I use for gifted crypto?
Usually the giver’s basis, with special rules for losses.
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Reviewed and sources
Written and reviewed by Joshua Baskin, founder. Last reviewed . How we check facts · Report an error
Education only. Not investment, tax or legal advice. We do not pick coins.