Yes, you can gift cryptocurrency tax-free, provided the gift’s value does not exceed the annual exclusion limit set by the IRS, which is $18,000 per recipient for 2024. If the gift exceeds this limit, you must report it using Form 709, though taxes may not be due if you apply part of your lifetime gift tax exemption of $12.92 million.
Key Points in List Form:
- Gift Limit: You can gift up to $18,000 worth of cryptocurrency per person per year, tax-free.
- Form 709: For gifts over this amount, filing Form 709 is required.
- Lifetime Exemption: The lifetime gift tax exemption can be applied to avoid immediate taxation if the gift exceeds the annual exclusion limit.
- No Tax for Recipient: The person receiving the gift does not owe taxes but may owe capital gains tax if they sell the cryptocurrency later.
Cryptocurrency Gifting Limits and Filing Requirements
| Gift Value (in USD) | Filing Requirement | Tax Implication |
| $18,000 or below | No filing needed | No taxes due |
| Above $18,000 | File Form 709 (Gift Tax) | May use lifetime gift tax exemption to avoid paying taxes immediately |
Frequently Asked Questions
Do I owe taxes if I gift more than $18,000 in crypto?
You must file Form 709 for gifts over $18,000, but you can use your lifetime gift tax exemption to avoid immediate taxes.
Does the recipient of the crypto gift owe taxes?
No, the recipient does not owe taxes when receiving the gift, but they may owe capital gains tax if they sell the cryptocurrency later.
Are crypto donations to charity taxed?
No, donations to qualified charities are tax-deductible and not subject to gift taxes.
What happens if I don’t file Form 709 for a crypto gift over $17,000?
You may face penalties, and the IRS could reduce your lifetime gift tax exemption.
Is gifting cryptocurrency to a spouse tax-free?
Yes, you can gift an unlimited amount to a U.S. citizen spouse. For non-citizen spouses, the exclusion limit is $175,000 for 2024.
Can I gift cryptocurrency to minors?
Yes, but the $18,000 limit still applies, and a guardian may need to manage the gift until the child reaches legal age.
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