Gifting Bitcoin in 2025: What the IRS says and how to avoid tax trouble

💡 DMK Insight

So, gifting Bitcoin might seem like a tax-free move, but here’s the catch: the IRS has specific rules that could trip you up later. For traders, understanding the implications of gifting crypto is crucial, especially as we approach year-end tax planning. While you won’t incur immediate taxes when gifting Bitcoin, the recipient may face capital gains taxes if they sell it later. This could affect your strategy if you’re considering gifting as a way to transfer wealth or manage tax liabilities. Keep an eye on how this might influence market behavior, especially if large amounts of Bitcoin are gifted, which could impact liquidity and price volatility. Also, worth noting is the potential for changes in tax regulations, which could affect how you approach gifting in the future. As we head into tax season, monitoring IRS announcements and potential legislative changes will be key. Stay compliant and informed to avoid any nasty surprises down the line.