In this article, we explain the correct transaction types to use when sending or receiving cryptocurrency from friends.
Important: Gifted (or inherited) tokens retain the holding period of the previous owner. This means the original acquisition date of the token from the previous holder gets carried over to the new holder.
This is a general guide and assumes the transaction is tax-free, however, always confirm with a tax advisor or financial authority for compliance with local laws.
This article is separated into three sections:
1) Sending cryptocurrency to a friend
2) Receiving cryptocurrency from a friend
3) Can I exclude these transactions from my tax report?
1) Sending cryptocurrency to a friend
When sending a cryptocurrency to a friend, you can either use the transaction type "Donation" or "Gift" in your transaction records. You can refer to the article Transaction Types for detailed instructions.
2) Receiving cryptocurrency from a friend
If you receive a cryptocurrency from a friend, you can use the transaction type "Gift/Tip" in your transaction records.
Enter the initial token acquisition date of the previous holder:
3) Can I exclude these transactions from my tax report?
If you prefer, you can filter this transaction to keep it out of your tax report.
Please note: excluding income or removing cryptocurrency transactions without proper capital gains calculations might not comply with tax regulations in all jurisdictions.