Question

Crypto received from freinds

Forum|Forum|4 years ago
February 21, 2022
1 reply
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All my crypto transactions was from friends sending me money that way instead and I sold right after. How do I claim that if they were gifts?

TurboTax Premier Online

ColeenD3

They didn't actually give you money though. Gifts of investments are different than a gift of cash since they can increase in value. The basis of a gift is the basis of the person who gave you the gift. This means that if when your friend bought the cryptocurrency, it cost $50 and when they gave it to you, it was worth $100, your basis is the $50 amount. If you sell for any amount over $50, that is a gain to you. Even if you sell it for the same amount they purchased it, you still have to report it to show it was not a gain.

In the investment section, you will be asked if you got the currency in a form other than purchase.

Please see this LINK for more information.

S

S8NpTl

Employee

If I may ask a follow up question:

I received some crypto units for free when I signed up to a Crypto platform (Coinbase), as part of their sign up promotion. I had sold this amount. In the transaction csv that Coinbase provided, I see the "sell" transaction. I report the amount I received as basis, and the sold price as proceed in my 8949 and schedule D. This part is fine.

Where should I put the "free" units that I originally received from Coinbase? I see the transaction, that has amount I received as cost basis, then transaction type is "reward".