Hello all,
I am a US citizen currently living in the US and my father who isn’t a US citizen and lives abroad plans to send me crypto as a gift.
We are exploring stable coins such as USDT and USDC.
From my understanding when I sell the gifted crypto I would need to know my father’s cost basis of the gifted asset. That’s how I would calculate my realized gains/losses for tax purposes. Theoretically, when using USDT or USDC the cost basis should remain unchanged since the price of these assets should remain unchanged. Or at least that’s the goal.
My question is - what kind of proof/documentation would the IRS need from me to prove my father’s cost basis? The goal is to not report/incur any capital gains/losses. In all the documents I have come across it’s simply stated that I should “know” the gifter’s cost basis.
Thanks in advance!
