Buying Bitcoin for a friend

[ace543]

Hey everyone,

Something I've been thinking about lately as a theoretical situation.
If someone wanted to send cash to their friend's US bank account in large amounts daily, then that person bought crypto on a US-based exchange and sent back to the friend's wallet as a gift, what are the tax implications?

Is the person receiving USD liable for paying taxes on the money received?
What about taxes on the cryptocurrency?

 

[JohnLocke]

Where I live it makes no difference because you will be taxed from the amount received, that's actually because it is a FRIEND and not a family member where other tax regulation apply.

Toggle signature

>> Unlock the Power of OffshoreCorpTalk: Become a Member of the Mentor Group Gold <<​

Latest Video Interviews, Offshore Company Resources, Payment Processing Tips & Tricks, Articles and Anonymity Hints only a click away!
Support the Freedom of Speech of our Community

Disclaimer: Nothing I say should be taken as tax, legal or financial advice. Anything I say is for general informational purposes only. Always seek independent professional advice.​

 

[CaptK]

Your Friend will be liable on what he bought.

 

[ace543]

CaptK said:
Your Friend will be liable on what he bought.
Click to expand...

Interesting, so the person receiving the $ transfer is not liable, but the BTC receiver would be? Or perhaps both?

 

[CaptK]

Person receiving could say it was family support but when they buy crypto and send it they will need to explain where and what for.

 

[FastPony]

International stuff gets messy quickly. You may want to ask a CPA so you're aware of gift limits and disclosure requirements. Also, if you receive and send a lot, they might think you run an unlicensed money transmission business. Danger.