If I gift crypto in Canada, does the recipient pay capital gains?

Tax Questions
#1

Hello, I am in Canada. I have a question, here’s an example. Let’s say I gift a family member $10,000 worth in Bitcoin. I understand that in Canada gifting crypto is considered a disposition by the CRA so I would pay any capital gains I gained while I held it. And for the recipient, their Fair Market Value would be the day they received it.

So if I gifted them $10,000 in Bitcoin, and they were to sell the Bitcoin for $10,000 immediately after receiving it, would they pay any Capital Gains? Or not because they sold it as soon as it was received?

#2

Hi Zen.

Thanks for your message. :blush:

This sounds like a question for a qualified accountant or the CRA as it would depend on things like which cost-basis method your family member is using, plus any other personal tax circumstances.

One thing they could try is setting up a free Koinly account and entering the transactions there to get an idea of how it would be calculated. :+1:t2:

#3

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