Calculate gift tax implications for cryptocurrency transfers. Estimate whether your crypto gift exceeds the $18,000 annual exclusion and the recipient's carryover basis.
Gifting cryptocurrency has specific tax rules that differ from selling or trading. When you give crypto as a gift, the giver does not owe income tax or capital gains tax on the transfer — but gift tax rules apply. For 2025, you can gift up to $18,000 per recipient per year without filing a gift tax return (Form 709). Married couples can split gifts for a combined $36,000 exclusion.
The recipient inherits your original cost basis (carryover basis), meaning they will owe capital gains when they eventually sell based on your purchase price, not the gift-date value. If the FMV at the time of gifting is lower than your cost basis, special rules apply to prevent loss harvesting through gifting.
This calculator helps you determine whether your crypto gift triggers filing requirements, the gift tax exposure above the annual exclusion, and the recipient's carryover basis for future tax calculations. This tool is for educational purposes only and is not tax or financial advice.
Gifting crypto is a popular way to transfer wealth, but the tax implications are often misunderstood. This calculator clarifies whether you need to file Form 709, how much of your lifetime exemption you're using, and what cost basis the recipient inherits. It helps you plan gifts strategically to stay within the annual exclusion.
Annual Exclusion (2025) = $18,000 per recipient ($36,000 if gift-splitting) Taxable Gift = FMV of Gift − Annual Exclusion Recipient's Basis = Donor's Original Cost Basis (carryover basis) If FMV < Basis at gift date: Recipient's basis for loss = FMV at gift date
Result: $7,000 taxable gift; recipient basis $8,000
You gift crypto worth $25,000. The annual exclusion is $18,000, so $7,000 is a taxable gift that counts against your lifetime exemption ($13.61M). The recipient's carryover basis is your original $8,000 cost basis.
Gifting cryptocurrency is not a taxable event for the giver — no capital gains tax is triggered. However, gift tax rules require filing Form 709 for gifts exceeding the annual exclusion. The lifetime exemption of $13.61M means most people won't actually owe gift tax.
The recipient of a crypto gift inherits the donor's original cost basis. This is critical for future tax planning — if you bought Bitcoin at $1,000 and gift it when it's worth $50,000, the recipient's basis is $1,000. Their capital gain upon sale would be $49,000.
Gifting appreciated crypto to family members in lower tax brackets can reduce the overall tax burden. The donor avoids capital gains, and the recipient may pay a lower rate. Combine this with the annual exclusion to transfer significant wealth tax-efficiently.
The giver does not owe income tax or capital gains on a gift. However, if the gift exceeds the annual exclusion ($18,000 per recipient), you must file Form 709. The excess counts against your lifetime gift/estate exemption.
When you gift crypto, the recipient inherits your original cost basis. This means when they sell, they calculate capital gains based on what you originally paid, not the value at the time of the gift.
If the FMV at the gift date is less than your cost basis, the recipient's basis for calculating a loss is the FMV at the gift date. For gains, they use your original basis. This prevents donors from transferring losses.
The donor avoids capital gains tax by gifting instead of selling. However, the recipient inherits the gain through the carryover basis. This is a deferral strategy, not elimination — unless the recipient is in a lower tax bracket.
You must file Form 709 if your gift to any single recipient exceeds $18,000 in a year. Even if no tax is owed (due to the lifetime exemption), the filing requirement still applies for gifts above the annual exclusion.
For 2025, the lifetime gift and estate tax exemption is $13.61 million per individual. Taxable gifts above the annual exclusion reduce this exemption. Very few individuals actually owe gift tax due to this large exemption.