Explaining Gift Taxes

<br><blockquote><strong>"but in this world nothing can be said to be certain, except death and taxes."</strong></blockquote><br><p>This is a quote repeated probably every day by someone around the world. Taxes are a reality of life but why be afraid of them? Instead, we should aim to do our best to understand them. At Asset Gift, we have built a platform that makes collecting and sending crypto gifts easy. What taxes, if any, are owed on these gifts?</p><br><h2 id="what-is-a-gift">What is a Gift?</h2><br><p>A gift or a present is <strong>an item given to someone without expecting payment or anything in return</strong>. Although gift-giving might involve an expectation of reciprocity, if you expect repayment, it is not a gift. </p><br><a href="https://asset.gift/blog/posts/62a06611c0ea530657b70929?utm_source=assetgift-blog&utm_medium=blog&utm_campaign=we-are-asset-gift-blog" target="_blank">READ MORE</a> : Send a crypto gift in 3 minutes on Asset Gift<br><br><p>The definition is helpful but still leaves a lot up to individual circumstances. You may not expect repayment if you buy a hamburger for your friend. Does that make it a gift? While technically it might, we imagine that most governments won't be interested in tracking your lunch dates. </p><br><p>Because monetary value can change hands so easily, governments put parameters in place for what is defined to be a gift. They want to avoid large sums being moved around that go unaccounted for by the tax system. They also don't want you filling out a form to account for the hamburger you bought for your co-worker as a thank you for covering your shift!</p><br><h2 id="when-is-a-gift-taxable">When is a Gift Taxable?</h2><br><p>So when do I need to pay taxes when I send a gift? The answer to this question depends on your country of residence.</p><br><meta http-equiv="Content-Type" content="text/html; charset=utf-8"><link type="text/css" rel="stylesheet" href="resources/sheet.css" > <style type="text/css">.ritz .waffle a { color: inherit; }.ritz .waffle .s2{border-bottom:1px SOLID #000000;border-right:1px SOLID #000000;background-color:#ffffff;text-align:center;text-decoration:underline;-webkit-text-decoration-skip:none;text-decoration-skip-ink:none;color:#1155cc;font-family:'Arial';font-size:10pt;vertical-align:middle;white-space:nowrap;direction:ltr;padding:2px 3px 2px 3px;}.ritz .waffle .s1{border-bottom:1px SOLID #000000;border-right:1px SOLID #000000;background-color:#ffffff;text-align:center;color:#000000;font-family:'Arial';font-size:10pt;vertical-align:middle;white-space:nowrap;direction:ltr;padding:2px 3px 2px 3px;}.ritz .waffle .s3{border-bottom:1px SOLID #000000;border-right:1px SOLID #000000;background-color:#ffffff;text-align:center;color:#000000;font-family:'Arial';font-size:10pt;vertical-align:middle;white-space:normal;overflow:hidden;word-wrap:break-word;direction:ltr;padding:2px 3px 2px 3px;}.ritz .waffle .s0{border-bottom:1px SOLID #000000;border-right:1px SOLID #000000;background-color:#ffffff;text-align:center;font-weight:bold;color:#000000;font-family:'Arial';font-size:10pt;vertical-align:middle;white-space:nowrap;direction:ltr;padding:2px 3px 2px 3px;}</style><div class="ritz grid-container" dir="ltr"><table class="waffle" cellspacing="0" cellpadding="0"><thead style='display:none'><tr><th class="row-header freezebar-origin-ltr"></th><th id="0C0" style="width:129px;" class="column-headers-background">A</th><th id="0C1" style="width:216px;" class="column-headers-background">B</th><th id="0C2" style="width:352px;" class="column-headers-background">C</th></tr></thead><tbody><tr style="height: 20px"><th id="0R0" style="height: 20px;" class="row-headers-background"><div class="row-header-wrapper" style="line-height: 20px">1</div></th><td class="s0" dir="ltr">Country</td><td class="s0" dir="ltr">Source</td><td class="s0" dir="ltr">Summary</td></tr><tr style="height: 20px"><th id="0R1" style="height: 20px;" class="row-headers-background"><div class="row-header-wrapper" style="line-height: 20px">2</div></th><td class="s1" dir="ltr">Denmark</td><td class="s2" dir="ltr"><a target="_blank" href="https://taxsummaries.pwc.com/denmark/individual/other-taxes#:~:text=Gifts%20and%20donations%20to%20the,a%20gift%20tax%20of%2036.25%25.">Source</a></td><td class="s3" dir="ltr">Gifts and donations not exceeding DKK 69,500 (in 2022) to the donor’s descendants are tax exempt.</td></tr><tr style="height: 20px"><th id="0R2" style="height: 20px;" class="row-headers-background"><div class="row-header-wrapper" style="line-height: 20px ;display: none'">3</div></th><td class="s1" dir="ltr">USA</td><td class="s2" dir="ltr"><a target="_blank" href="https://www.nerdwallet.com/article/taxes/gift-tax-rate#:~:text=If%20you%20give%20more%20than,709%20to%20disclose%20the%20gift.">Source</a></td><td class="s3" dir="ltr">Each individual can gift up to $15,000 tax free per year</td></tr><tr style="height: 20px"><th id="0R3" style="height: 20px;" class="row-headers-background"><div class="row-header-wrapper" style="line-height: 20px">4</div></th><td class="s1" dir="ltr">United Kingdom</td><td class="s2" dir="ltr"><a target="_blank" href="https://www.gov.uk/inheritance-tax/gifts#:~:text=There's%20no%20Inheritance%20Tax%20to,a%20civil%20partnership%20with%20you">Source</a></td><td class="s3" dir="ltr">Tax Free up to £250 for any reason. Tax free up to £1000 between friends to a married couple. Tax free up to £2500 to a married couple from grandparents. Tax free up to £5000 to a married couple from parents.</td></tr><tr style="height: 20px"><th id="0R4" style="height: 20px;" class="row-headers-background"><div class="row-header-wrapper" style="line-height: 20px">5</div></th><td class="s1" dir="ltr">Jamaica</td><td class="s2" dir="ltr"><a target="_blank" href="https://jamaica-gleaner.com/article/business/20141228/taxing-christmas-1">Source</a></td><td class="s1" dir="ltr">No Gift Taxes</td></tr><tr style="height: 20px"><th id="0R5" style="height: 20px;" class="row-headers-background"><div class="row-header-wrapper" style="line-height: 20px">6</div></th><td class="s1" dir="ltr">Argentina</td><td class="s2" dir="ltr"><a target="_blank" href="https://www.angloinfo.com/how-to/argentina/money/general-taxes/estate-gift-tax">Source</a></td><td class="s1" dir="ltr">No Gift Taxes</td></tr></tbody></table></div><br><p>We chose examples from a variety of regions to give an idea of the range in which governments view gifts. Please note that we specifically refer to inter monetary gifts between two living people. The summary above does not account for cases of inheritance or property gifts.</p><br><h2 id="who-pays-gift-taxes">Who pays gift taxes?</h2><br><p>This is a common question, does the gifter or the giftee pay taxes? Again this depends on your country of residence. We have summarized the countries from above in the table below:</p><iframe src="https://docs.google.com/spreadsheets/d/e/2PACX-1vRk1abPz88M3dtdGiDyrMDP80HQa1-NMy_RecUophIHRu42SO2Zb4LjH5eO_fmi6FEXZETAsL9jmFvk/pubhtml?gid=1177585366&single=true&widget=true&headers=false"></iframe><p>We recommend saving any receipts for gifts sent on Asset Gift to be able to report a tax liability if you have one. Anything you receive on Asset Gift will display details in the "Activity" section under "View Balances."</p><br><h2 id="send-a-crypto-gift-in-3-minutes">Send a Crypto Gift in 3 Minutes!</h2><br><p>Now that you know the details, gifting assets/monetary value should <strong>not scare you </strong>regarding taxes.</p><br><p>We will continue to update the tables above to include as many countries as possible. This way, anyone reading this can know how gifting assets will matter for their taxes.</p><br><p>On Asset Gift, you can send a crypto gift to anyone with an email in about three minutes. It makes a great birthday gift or wedding gift and only requires you to have a credit card.</p><br><a href="https://asset.gift/blog/posts/62a06611c0ea530657b70929?utm_source=assetgift-blog&utm_medium=blog&utm_campaign=we-are-asset-gift-blog" target="_blank">READ MORE</a> : How to send a crypto gift on Asset Gift

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Explaining Gift Taxes

At Asset Gift, we have built a platform that makes collecting and sending crypto gifts easy. What taxes, if any, are owed on these gifts?

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