IRS reminds taxpayers to report virtual currency transactions

Re:IRS reminds taxpayers to report virtual currency transact... by adanto6840 on Sunday March 25, 2018 @02:22PM (#16673568)

Not that it would probably ever apply to me, but I'm curious if that's per "individual gift giver - giver receiver" pair? Or is it the case that it's solely per individual gift _giver_? As in, would receiving a $500 gift from Bill Gates (who presumably has met the $5MM lifetime threshold) be fully taxable? Just random Sunday curiousness. :)

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Re:IRS reminds taxpayers to report virtual currency transact... by mindslight on Sunday March 25, 2018 @02:25PM (#16673594)

For what GP is talking about, it's per giver. It's a combined gift/estate tax, with the goal of preventing someone from giving to escape their eventual estate tax burden.

But that isn't really relevant for the average person - gifts below the annual exclusion amount (something like $14k) are exempt from reporting/recording/tallying at your death. And this does apply per each pair of people per year, so in your scenario BG would have nothing to report.

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Re:IRS reminds taxpayers to report virtual currency transact... by isostatic on Sunday March 25, 2018 @02:25PM (#16673591)

Would have to be per giver, otherwise it would be trivial to avoid (want Dave to get another $1m, either give $2m and have the taxes taken, or give $1.1m to Joe Bloggs, who gives $1m to Dave and keeps the rest.

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Re:IRS reminds taxpayers to report virtual currency transact... by gxs on Sunday March 25, 2018 @02:23PM (#16673581)

Individual gift giver. So lifetime max per person! Not too shabby.

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Re:IRS reminds taxpayers to report virtual currency transact... by purple-again on Sunday March 25, 2018 @02:29PM (#16673611)

Lifetime max $5,000,000. Yearly max changes but hovers around $15k per person (wife and husband diffrent people!) and doesn’t touch yearly max.

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