My wife got crypto meant for growth but not used in trading and now it will be returned. How will it be reported and are any taxes due?
i think if it wasnt used tradin and remains a gift, tax might not kick in when returned. but its best to drop a quick line to a tax pro since crypto rules can get tricky.
Based on my experience and some research I’ve done, the situation seems less complex than a full trading scenario. If the cryptocurrency was received purely as a gift and never entered into any transactions, it is less likely that it would trigger an immediate tax event. However, since tax law and treatment can vary depending on specifics like the asset’s value and the nature of the eventual return, it might be wise to consult with a tax advisor who is well-versed in cryptocurrency matters. This approach will help ensure that all reporting is compliant with current regulations.