How to Gift Crypto Assets to Spouse - Community Forum (2024)

FAQs

Can you gift crypto to your spouse? ›

Giving a crypto gift

Gifts under $15,000 in crypto: No tax implications for gifter. Gifts above $15,000: Gifter must report gift to the IRS, using Form 709. Gifts above $15,000 count toward to a lifetime gift exemption of $11.7 million ($12.06 million in 2022)

Crypto currency is an asset, just like any other and as such, is taxable. Gifting crypto currency to your children or anyone other than your spouse or civil partner, may result in you generating a capital gain on their disposal. There are also inheritance tax implications, should you die within 7 years of the transfer.

Options include purchasing a gift card or using a cryptocurrency exchange. Once you've acquired the gift, find a safe place offline to store the information needed to access it—assuming the recipient isn't already a cryptocurrency investor.

Crypto gifts are usually not taxable in the US for both the donor and the person receiving the gift. However, if you give someone over $17,000, you'd have more reporting requirements. If that's your case, you'd need to file a gift tax return since you have exceeded the annual gift tax exclusion amount.

Crypto exchanges, like Coinbase or Kraken, are one of the most straightforward ways to gift crypto. You can buy the coins directly from a crypto exchange and send it to the recipient's digital wallet if they have one. Some exchanges even have digital wallets built within the platform.

Cryptocurrency Is a Marital Asset

Under the law, cryptocurrency is considered a marital asset and subject to division in divorce proceedings. This means that if either spouse invested in or acquired cryptocurrency during the marriage, it will be included in the assets to be divided.

The basic way for a user to send BTC is to copy the recipient's address and then paste it into their wallet's 'send' field. Or, they can scan the recipient's QR code and automatically fill it in.

There is no way to legally avoid taxes when cashing out cryptocurrency. However, strategies like tax-loss harvesting can help you reduce your tax bill legally. Converting crypto to fiat currency is subject to capital gains tax. However, simply moving cryptocurrency from one wallet to another is considered non-taxable.

Gifting Crypto through an Exchange

The most straightforward way to gift cryptocurrency is through a crypto exchange, such as Coinbase or Robinhood. If you don't hold any crypto, you can easily buy some on one of these crypto exchanges by paying with a credit card. Many exchanges provide a user-friendly interface.

How do I send crypto discreetly? ›

Some of the common ways of engaging in Bitcoin transactions anonymously are using peer-to-peer marketplaces, Bitcoin ATMs, and brokers, avoiding exchanges that use KYC, using Bitcoin mixers, and using a VPN. There are a number of methods that you can use to make untraceable Bitcoin transactions.

You can safely give out your Bitcoin address to friends, family, and acquaintances. No one can steal your bitcoin using just your Bitcoin address.

With the account being in your name, you are the beneficiary of any capital gains tax on the disposal of assets within that account. There is no Capital Gains Tax on the transfer of assets between spouses and civil partners, so you could transfer the asset to your wife prior to the disposal.

If you're sending crypto as a gift, you'll have no tax obligation - provided the value of the cryptocurrency gift is less than $16,000 based on the fair market value (FMV) on the day you sent it. If the FMV is more than $17,000 (for 2023), you'll need to fill out IRS Form 709.

If you send cryptocurrency to another person in exchange for goods or services, it will be considered a taxable disposal. You'll incur a capital gain or loss depending on how the price of your crypto changed since you originally received it.

Yes, wallets are a universally appreciated gift for both men and women. The key is to focus on the individual's style and needs.

Users on Crypto.com can buy Bitcoin and easily transfer to friends and family with minimal fees through the Crypto.com App, particularly when both parties use the platform. Transaction fees for sending Bitcoin vary based on network condition and transfer speed preferences.

In the exceptional case that you do buy cryptocurrency on behalf of someone else: Have an explicit agreement (about the nature of the contract and what they are buying). For example, Sam gives Peter $20k to purchase 1 BTC on Sam's behalf. Immediately move the cryptocurrency into a separate wallet for the other person.