Best Consumer Protection Lawyers in Saginaw, MI

As cryptocurrencies like Bitcoin, Ethereum, Ripple, and others increase in popularity and circulation in the economy, it is important to plan for the transition of cryptocurrency in your estate plan and the tax consequences of cryptocurrency. The IRS is paying more attention to these kinds of assets. The IRS treats cryptocurrency as property and an individual should use the fair market value of the cryptocurrency on the date the individual received it as the taxable basis. Individuals may make gifts of cryptocurrency to reduce capital gains taxes accruing on their holdings. Gifts of cryptocurrency should be treated for tax purposes as gifts of property, in which the donee receives the donor’s cost basis in the property. By donating appreciated cryptocurrency to qualified charities, the taxpayer can receive a charitable deduction on his or her income taxes for the gift and avoid paying capital gains taxes on the appreciation.