Your friend is correct. It is in his account, and he will owe any taxes due on the currency if he sells, trades, exchanges, or pays for anything. If he was only transferring between his own wallets he would have no tax, but he is transferring to your wallet which is a taxable event. He is basically paying off the debt he owes to you.
You will now have a basis equal to the value that you received it at. Somebody had to pay tax on that increase in value.
You will not owe tax on it until you sell, trade, exchange, or pay for something.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
