hypothetical:
- I #coinjoin a stack of KYC sats; let’s say, 10 UTXOs, each 1 million sats
- I give (send) these out to family/friends at some point in the near future
what’s their cost-basis? the price they received it at?
does it now become non-KYC for them?
#asknostr
#plebchain
They each hold KYC-free sats, with (I believe, at least in USA) a cost basis of the value at the time they received the UTXO.
Depending on the value, this might qualify - for the giver - as taxable gifts (I think the threshold is high, like $15000, but that could be cumulative idk)
It may also qualify as income for the receiver but I don’t know for sure. And our tax law is way behind the reality of 2020s in any case.
Since it is a gift, their basis would be equal to your basis if the value at the time of transfer is equal to or greater than your basis.
If the value at the time of transfer is less than your basis they will have a dual basis for tax purposes. If they sell it for a gain, the basis is whatever your basis was. If they sell it for a loss, the basis is the value on the date of transfer.
In the US, they take your cost basis. If the gifts are under $15,000 at the time of the gift, you don’t pay any tax, and the cost basis isn’t adjusted. The recipients only pay capital gains tax when they sell(spend).
Example: you buy at 1k, transfer to them at 3k, they sell at 5k, they pay capital gains tax on 4K.
They do have noKYC sats as long as you don’t rat them out, and if the place they are spending at don’t require proof of how they acquired it.
Hope that helps :)
18k* not 15k
