Non-Taxable Transactions
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Not every transaction is taxable or reportable under the tax code.
Cryptocurrency gifts may be non-taxable to both the giver and recipient, so long as you do not exceed the annual tax exclusion threshold ($15,000 per recipient per year) or lifetime gift tax exclusion. Gifts over $15,000 will need to be reported by the sender on an annual gift tax return. The cost basis of any gift should be provided to the recipient, since the recipient will inherit the original cost basis from when the sender originally acquired the cryptocurrency.
Donations to qualified charities under US tax law may count as a charitable donation and help lower your overall tax liability. These donations should be reported on your return.
Because cryptocurrency is considered property by the IRS, in margin trading, borrowing funds to trade crypto is not considered a taxable event. In fact, any time you borrow or take a loan it is not taxable. However, when you close the position (sell the property), gains (or losses) will be reportable on your tax return. In summary, borrowing crypto is not taxable, but any trades you do with the borrowed crypto is taxable.