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Tax consequences of a gift returned to sender?
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Transaction 1: On 2014-12-27, I sent a holiday gift of 0.1 BTC (which according to Coinbase was worth about 31.47 USD at the time) from my Coinbase account to an email address.
Transaction 2: On 2015-03-28 (91 days later), my Coinbase account received 0.1 BTC (which according to Coinbase was worth about 25.32 USD at the time) with a note stating: "This transaction was automatically returned to the sender because the recipient never logged in to claim it." (And, I never tried to resend it. Ie, I kept it.)
Each is a separate transaction confirmed on the Bitcoin blockchain.
When reporting my taxes, I think my accountant just said we could ignore both transactions. But, I'm curious if that's correct. If not, how should I have reported these transactions on my taxes?
united-states income-tax gift-tax bitcoin
asked 4 hours ago
ma11hew28
1475
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up vote
1
down vote
favorite
Transaction 1: On 2014-12-27, I sent a holiday gift of 0.1 BTC (which according to Coinbase was worth about 31.47 USD at the time) from my Coinbase account to an email address.
Transaction 2: On 2015-03-28 (91 days later), my Coinbase account received 0.1 BTC (which according to Coinbase was worth about 25.32 USD at the time) with a note stating: "This transaction was automatically returned to the sender because the recipient never logged in to claim it." (And, I never tried to resend it. Ie, I kept it.)
Each is a separate transaction confirmed on the Bitcoin blockchain.
When reporting my taxes, I think my accountant just said we could ignore both transactions. But, I'm curious if that's correct. If not, how should I have reported these transactions on my taxes?
united-states income-tax gift-tax bitcoin
asked 4 hours ago
ma11hew28
1475
add a comment |Â
up vote
1
down vote
favorite
up vote
1
down vote
favorite
Transaction 1: On 2014-12-27, I sent a holiday gift of 0.1 BTC (which according to Coinbase was worth about 31.47 USD at the time) from my Coinbase account to an email address.
Transaction 2: On 2015-03-28 (91 days later), my Coinbase account received 0.1 BTC (which according to Coinbase was worth about 25.32 USD at the time) with a note stating: "This transaction was automatically returned to the sender because the recipient never logged in to claim it." (And, I never tried to resend it. Ie, I kept it.)
Each is a separate transaction confirmed on the Bitcoin blockchain.
When reporting my taxes, I think my accountant just said we could ignore both transactions. But, I'm curious if that's correct. If not, how should I have reported these transactions on my taxes?
united-states income-tax gift-tax bitcoin
asked 4 hours ago
ma11hew28
1475
Transaction 1: On 2014-12-27, I sent a holiday gift of 0.1 BTC (which according to Coinbase was worth about 31.47 USD at the time) from my Coinbase account to an email address.
Transaction 2: On 2015-03-28 (91 days later), my Coinbase account received 0.1 BTC (which according to Coinbase was worth about 25.32 USD at the time) with a note stating: "This transaction was automatically returned to the sender because the recipient never logged in to claim it." (And, I never tried to resend it. Ie, I kept it.)
Each is a separate transaction confirmed on the Bitcoin blockchain.
When reporting my taxes, I think my accountant just said we could ignore both transactions. But, I'm curious if that's correct. If not, how should I have reported these transactions on my taxes?
united-states income-tax gift-tax bitcoin
united-states income-tax gift-tax bitcoin
asked 4 hours ago
ma11hew28
1475
asked 4 hours ago
ma11hew28
1475
asked 4 hours ago
ma11hew28
1475
asked 4 hours ago
ma11hew28
1475
asked 4 hours ago
ma11hew28
1475
1475
add a comment |Â
add a comment |Â
1 Answer
1
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oldest
votes
up vote
2
down vote
I would describe this as an attempted but uncompleted gift, with no tax consequence. A gift of this amount would not have been reportable, taxable, or deductible by you. Reversing the intended gift should not be a taxable event either.
(If the gift had been completed and the recipient sold the Bitcoin, the recipient would have to figure capital gains tax.)
answered 2 hours ago
nanoman
3,2231813
OK. Thank you. :-)
– ma11hew28
2 hours ago
The last sentence should be removed or clarified since basis rules for capital gains on sold gifts are not so simple.
– Hart CO
1 hour ago
@HartCO That's why I said "would have to figure", not how to do it. :) It's not part of the question, but seemed worth mentioning because it was a likely consequence if the gift had succeeded.
– nanoman
1 hour ago
@nanoman I read it as, they would owe capital gains tax, which may or may not be true.
– Hart CO
41 mins ago
add a comment |Â
1 Answer
1
active
oldest
votes
1 Answer
1
active
oldest
votes
active
oldest
votes
active
oldest
votes
up vote
2
down vote
I would describe this as an attempted but uncompleted gift, with no tax consequence. A gift of this amount would not have been reportable, taxable, or deductible by you. Reversing the intended gift should not be a taxable event either.
(If the gift had been completed and the recipient sold the Bitcoin, the recipient would have to figure capital gains tax.)
answered 2 hours ago
nanoman
3,2231813
OK. Thank you. :-)
– ma11hew28
2 hours ago
The last sentence should be removed or clarified since basis rules for capital gains on sold gifts are not so simple.
– Hart CO
1 hour ago
@HartCO That's why I said "would have to figure", not how to do it. :) It's not part of the question, but seemed worth mentioning because it was a likely consequence if the gift had succeeded.
– nanoman
1 hour ago
@nanoman I read it as, they would owe capital gains tax, which may or may not be true.
– Hart CO
41 mins ago
add a comment |Â
up vote
2
down vote
I would describe this as an attempted but uncompleted gift, with no tax consequence. A gift of this amount would not have been reportable, taxable, or deductible by you. Reversing the intended gift should not be a taxable event either.
(If the gift had been completed and the recipient sold the Bitcoin, the recipient would have to figure capital gains tax.)
answered 2 hours ago
nanoman
3,2231813
OK. Thank you. :-)
– ma11hew28
2 hours ago
The last sentence should be removed or clarified since basis rules for capital gains on sold gifts are not so simple.
– Hart CO
1 hour ago
@HartCO That's why I said "would have to figure", not how to do it. :) It's not part of the question, but seemed worth mentioning because it was a likely consequence if the gift had succeeded.
– nanoman
1 hour ago
@nanoman I read it as, they would owe capital gains tax, which may or may not be true.
– Hart CO
41 mins ago
add a comment |Â
up vote
2
down vote
up vote
2
down vote
I would describe this as an attempted but uncompleted gift, with no tax consequence. A gift of this amount would not have been reportable, taxable, or deductible by you. Reversing the intended gift should not be a taxable event either.
(If the gift had been completed and the recipient sold the Bitcoin, the recipient would have to figure capital gains tax.)
answered 2 hours ago
nanoman
3,2231813
I would describe this as an attempted but uncompleted gift, with no tax consequence. A gift of this amount would not have been reportable, taxable, or deductible by you. Reversing the intended gift should not be a taxable event either.
(If the gift had been completed and the recipient sold the Bitcoin, the recipient would have to figure capital gains tax.)
answered 2 hours ago
nanoman
3,2231813
answered 2 hours ago
nanoman
3,2231813
answered 2 hours ago
nanoman
3,2231813
answered 2 hours ago
nanoman
3,2231813
3,2231813
OK. Thank you. :-)
– ma11hew28
2 hours ago
The last sentence should be removed or clarified since basis rules for capital gains on sold gifts are not so simple.
– Hart CO
1 hour ago
@HartCO That's why I said "would have to figure", not how to do it. :) It's not part of the question, but seemed worth mentioning because it was a likely consequence if the gift had succeeded.
– nanoman
1 hour ago
@nanoman I read it as, they would owe capital gains tax, which may or may not be true.
– Hart CO
41 mins ago
add a comment |Â
OK. Thank you. :-)
– ma11hew28
2 hours ago
The last sentence should be removed or clarified since basis rules for capital gains on sold gifts are not so simple.
– Hart CO
1 hour ago
@HartCO That's why I said "would have to figure", not how to do it. :) It's not part of the question, but seemed worth mentioning because it was a likely consequence if the gift had succeeded.
– nanoman
1 hour ago
@nanoman I read it as, they would owe capital gains tax, which may or may not be true.
– Hart CO
41 mins ago
OK. Thank you. :-)
– ma11hew28
2 hours ago
OK. Thank you. :-)
– ma11hew28
2 hours ago
The last sentence should be removed or clarified since basis rules for capital gains on sold gifts are not so simple.
– Hart CO
1 hour ago
The last sentence should be removed or clarified since basis rules for capital gains on sold gifts are not so simple.
– Hart CO
1 hour ago
@HartCO That's why I said "would have to figure", not how to do it. :) It's not part of the question, but seemed worth mentioning because it was a likely consequence if the gift had succeeded.
– nanoman
1 hour ago
@HartCO That's why I said "would have to figure", not how to do it. :) It's not part of the question, but seemed worth mentioning because it was a likely consequence if the gift had succeeded.
– nanoman
1 hour ago
@nanoman I read it as, they would owe capital gains tax, which may or may not be true.
– Hart CO
41 mins ago
@nanoman I read it as, they would owe capital gains tax, which may or may not be true.
– Hart CO
41 mins ago
add a comment |Â
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