Bitcoin Forum

Can anyone guide me, is this considered gifting someone if you send over bitcoin to another familymember on coinbase? How do you file this on tax form?

You should discuss this on Legal subforum.[1] On a side note, do you have a financial advisor or tax lawyer? Maybe discussing with them directly can give you better insight, instead of asking some random dudes on the internet.

[1] https://bitcointalk.org/index.php?board=74.0

And remember to tell us which country you’re in whenever you ask a legal question. Laws differ by country.

I don't actually know the tax law on the country you are in. You should consult a tax lawyer or accountant to answer your question. I am actually happy that such transfer is not yet taxable in our country.

You should futher specify if you want to know how the tax would influence you? <Making a donation> or the person receiving the bitcoins. <receiving a donation>  ::)

If you receive a gift, then some countries see that as a commodity and capital gains come into affect. <You did not buy any coins, so the whole amount will have to be seen as capital gains, when you sell those coins.  ::)

The percentage differ from country to country.  ???

I think you should lock the other thread you created since you created this one.
https://bitcointalk.org/index.php?topic=5129246.0

And you really got some serious stuff in taxation thus only legal experts can help you with. I assume you're living in western part country since crypto is taxable in there. I don't know if I'll call my country fortunate as using crypto isn't under the taxation, or maybe it's just for now.

I guess your from asia also thats why you can say being. Lucky because the government is putting nothing for taxations about.bitcoin and also other cryptocurrency

But about OP,he should have add what country he is living and ths other person also because if they are both from same place then why not just convert to fiat and the problem will be done

First of all taxation laws are different in different countries.
But from what I know you shouldn't declare your gifts as an income at all. Unless the amount of this gift is over the numbers, written in the law.
Coinbase shouldn't make their own taxation rules in this case.

As long as this issue has to do with tax, it varies from country to country. I suggest you should get practical and physical about it. You need to get to your tax office in your country and also locate coinbase. Those are two ways you can resolve this I think.

We can already presume that he do lives on Western part yet he is really concern about taxation.If they dont have that kind of strict implementation of tax into their
place the he wont mind on asking these things for sure. Only legal experts would able to answer it locally yet not all the times that this forum would give out relevant or precise answers regarding on queries on where
you can seek off answer basically on your local place.

If the reason why you are sending the coins is to gift someone then yes, it counts as that. But if it's as a payment for something then no, just because the recipient might be related to you doesn't mean that all of a sudden it is classified as a gift as opposed to a normal transaction.

I honestly don't think that it will matter that much since you are the sender though. The recipient is usually the one that will incur tax implications.

Also, you need to be careful of asking for advice on the legal subforum without giving any specifics, because tax laws differ from country to country and the answers people can give you can only be extremely broad if you don't even provide the basic information. Note that most tax laws aren't platform specific, which means that even if your transaction is made without a third party, on-chain, the same rules will generally apply.

It depends on which country you live.
For example my country, Japan, we have to pay gift tax in that case. If you gift $ 20,000, you have to pay about  $ 1,000. It is very expensive!

If that amount isn't considerably big then I don't think you need to go all the hassle just to make things work legally. Coinbase to coinbase transfers also happen off the chain which means there will be no record of it in the blockchain happening. If you still insist you need to document the point in time on where your family member have liquidated it and mark the present market value at that time, you need to support it with screenshots of the transactions so that if they asked for one you are prepared to hand it out.

USA law says a gift under 20 k  each year is okay and not taxed

I would give  in December and In Jan  you could give 19500 dec 2019 and 19500 in Jan 2020

Small amounts that are under the relevant gifting limits, the tax authorities probably won't bat an eye on it.

But if your concern is solelyp that you're transferring funds to a family member, I really don't think that there is much of an issue here. There is absolutely no one who says that transactions undertaken in BTC to family have to be gifts in the first place, unless your intention is really to gift them.

If you're actually gifting funds, find out the relevant limits in your country from official sources, and stick to them. There may be tax implications that you have to oblige by regardless of the payment method, with BTC or fiat, on or off blockchain.

Did you ever sort this issue out?
Its unfortunate that giving a gift should lead to any sort of taxable event, but alas, here we are.