Bitcoin and Gifting questions

[Kylecain3]

Sorry if we aren't allowed to ask multiple questions in one but they're somewhat related. 

If I purchase BTC for a friend on my account for no gain on my end, just equal cash, is this taxable?

BTC can be annoying to sign up for, and it can be easy to buy if you already have an existing account, so helping somebody out for no gain shouldn't count right? 

Also, does the gift tax only apply to gifts larger to 15k in one payment, or multiple, and how is this even taxable? If you've already paid taxes on your earned income and decide to give it away, I'm highly confused as to why you'd  be taxed a second time? Maybe I'm looking at it from the wrong angle but as far as I'm concerned, if I earn 60k, pay taxes on it, and give away 40k of it to friends or family, how in the world is that anybody's business and how does being charitable deserve being taxed a second time? Thank you!

[MaryK4]

If you purchased BTC as a gift, the value at the time of the gift should just not be reported as the basis when you sell your other BTC on account.  Essentially it would just be "seen" as never sold by you.  However, the person you gifted it to would use the basis when they redeemed the BTC- the donee steps into the donor's shoes for basis so they would have to pay income tax on any earnings when sold.  You would need to keep track of it for them so you could show their basis.

The gift tax is part of the unified tax with estate tax, and the donor pays the tax on the gift (if required).  As you know the United States has an income tax but the gift tax is in theory a compromise so people who receive the gift does not have to pay the tax on it.