Giving cryptocurrency to another person is not a taxable sale; gifts above the annual exclusion require a gift tax return, and the recipient generally takes the giver's cost basis and holding period.
The annual exclusion is inflation-adjusted (19,000 dollars per recipient in 2025). Gifts above it reduce the lifetime exemption rather than creating tax for most donors. If the crypto has declined in value, special basis rules apply to the recipient’s loss.
Why it matters: a gift can shift future gains to a family member in a lower bracket, but the basis records have to travel with it.
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Definitions are general information, not legal advice, and may not reflect the most recent changes in law.
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