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Level 2
posted Nov 15, 2023 12:38:25 PM

Crypto gift from relatives

If I get the crypto gift from my mother who is not US-resident and lives in another country, how this should be taxed for me, if I am a US-resident?

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2 Replies
Employee Tax & Finance Expert
Nov 15, 2023 12:44:26 PM

Hello lulukern123, 

Thanks for joining us!

Getting crypto as a gift is not a taxable event, but when you sell it, then your cost basis is treated as any other gift.  Your cost basis may be the same as the person who gifted it to you or it may be the Fair Market Value at the time of gift, it depends on how much you sell it for. 

 

https://help.coinbase.com/en/coinbase/trading-and-funding/sending-or-receiving-cryptocurrency/crypto-gifts

Employee Tax Expert
Nov 15, 2023 12:53:15 PM

Hi lulukern123!

 

When someone gives you property, the donor's basis becomes your basis.  There would be no tax to you until you sell, exchange or dispose of the crypto.  Then, you would calculate your gain or loss by comparing your proceeds to the basis from the person who gave it to you.  In order to determine whether your gain or loss is long term or short term, you will include both the period the crypto was held by your mother as well as the period held by you.  

 

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