Giving cryptocurrency to another person without receiving anything in return. Gifts are not income to the recipient and not a sale by the giver; the recipient takes the giver's basis and holding period.
A gift carries over the giver's basis. An inheritance gets a new basis equal to fair market value at the date of death. The difference can be the entire gain.
Gifts up to the annual exclusion ($19,000 per recipient for 2025 and 2026) need no filing. Above that, the giver files Form 709, though tax is rarely owed because of the lifetime exemption. The recipient needs the giver's basis records, or basis defaults to zero on sale.
No. Gifts are not income. Tax comes later, when the recipient sells, using the giver's basis.
Source: IRC 102; IRC 1015; IRS Form 709 instructions
Last reviewed September 17, 2026. Tax rules change; confirm current law before acting.
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