CRYPTO TAX LOOP HOLE: GIFTING YOUR CRYPTOS!!!!
https://news.bitcoin.com/gifting-bitcoin-is-one-way-a-person-can-avoid-paying-crypto-taxes/
Gifting Cryptocurrencies: The Only Crypto-Tax Loophole
Gifting Bitcoin Is One Way a Person Can Avoid Paying Crypto-Taxes
Although, giving bitcoin as a gift is one way investors can avoid paying taxes on their cryptocurrency gains. Gifting money has to be more aligned with donating the funds as opposed to an employee bonus, and there is a fine line between the two financial events. According to Robert Wood, a tax lawyer based in San Francisco, an individual can gift up to $15,000 without documenting the transaction.
“If you give crypto to a friend or family member — to anyone really — ask how much it is worth. If the gift is worth more than $15,000, it requires you to file a gift tax return,” explains Wood.
For 2018, $15,000 is the amount of so-called “annual exclusion.” You can give gifts up to this amount each year to any number of people with no reporting required.
U.S. Citizens Can Gift $11.2 Million Per Lifetime
Dorian Nakamoto was gifted 67 BTC ($669,000 USD) after he was accused of being Satoshi Nakamoto.
Wood details that the gift doesn’t trigger income tax requirements for both the giver and the recipient. If the recipient calculates gains or losses (cashes out) from the gift in the future, then the funds will be taxable based on the value the day the gifting happened. Wood details that documenting the gift is helpful because donating money is often written off improperly. If the donation exceeds $15K, then U.S. residents are required by law to file a ‘gift tax return.’ “For 2018, $15,000 is the amount of so-called ‘annual exclusion,’” Wood details.
Further, Wood explains that in 2018 the amount a person or married couple can give per lifetime has increased quite a bit. According to the tax attorney, a person can gift up to $11.2 million tax-free during their lifetime, and married couples can gift up to $22.4Mn. If the individual gives the money to a recognized 501(c)(3) charity, they can get an income tax deduction for the spot value of the digital asset at the time of filing.
The link below is a link to the full article on www.Bitcoin.com
https://news.bitcoin.com/gifting-bitcoin-is-one-way-a-person-can-avoid-paying-crypto-taxes/
Please go over to CRYPTO BLOOD youtube channel and check out his video on this subject as well.