Giving crypto as a gift or to charity: the tax rules in the US, UK and Canada

Crypto makes an unusual present: it can be sent anywhere in minutes, and its value can change dramatically between the day you buy it and the day you give it away. That second point is why gifts and donations of crypto have tax consequences that a gift of cash doesn’t.

This guide covers giving crypto to people and to charity in the US, the UK and Canada. It focuses on what the official guidance says; for large gifts, or gifts as part of estate planning, it’s worth getting professional advice.

United States

Giving crypto to a person

The IRS says that if you receive crypto as a bona fide gift, you don’t recognize income when you receive it. The tax question comes later, when the recipient sells or otherwise disposes of it (FAQ 75).

For the giver, there are two points to know:

• Gift tax reporting: for 2026, the first $19,000 of gifts to any one person (other than gifts of future interests) is excluded from taxable gifts. Above that, the giver generally files Form 709, which the IRS lists for gifted digital assets. Filing doesn’t necessarily mean paying gift tax, because larger gifts count against a lifetime exemption.
• No capital gain for the giver: giving crypto away isn’t a sale, so the giver doesn’t normally realize a gain on it.

What the recipient inherits

The recipient’s basis and holding period depend on the giver’s. The IRS FAQs explain how basis works for gifted digital assets, including a special rule when the crypto is worth less than the giver’s basis at the time of the gift. In that case, whether the recipient later has a gain or a loss depends on the sale price. The practical message: the giver should hand over a record of what they paid and when, along with the crypto.

Donating crypto to charity

The IRS treats a donation of crypto to a qualifying charity as a charitable contribution of property (FAQ 78):

• If you held the crypto for more than one year, your deduction is generally its fair market value at the time of the donation.
• If you held it for one year or less, it’s generally the lower of your basis and its fair market value.

Donating appreciated crypto held for more than a year can therefore be more tax-efficient than selling it and donating the cash, because you don’t realize the gain on it. A deduction for donated property generally requires itemizing, and the charity and the documentation must meet IRS rules. Large non-cash donations have extra appraisal and reporting requirements.

United Kingdom

HMRC lists giving cryptoassets to another person as a disposal for Capital Gains Tax, unless it’s a gift to your spouse, civil partner or a charity.

• Gifts to most people (children, friends, other relatives): you’re treated as having disposed of the crypto, so you may have a capital gain to calculate on its value at the time, even though you received nothing for it. The gain is worked out with the usual pooling rules. See UK crypto tax.
• Gifts to your spouse or civil partner: not a taxable disposal under HMRC’s guidance.
• Gifts to charity: also excluded from the disposal rule above.

Example. You bought 1 ETH for £1,000 a few years ago (pooled cost) and give it to your adult son when it’s worth £2,500. For CGT, you’re treated as making a £1,500 gain, which counts towards your £3,000 annual allowance along with your other gains for the year. If you’d given the same ETH to your wife or husband, there would be no taxable disposal at that point.

Separately, large gifts can matter for Inheritance Tax if the giver dies within seven years. That’s a wider estate-planning topic, beyond the scope of this guide.

Canada

The CRA’s crypto guidance lists gifting crypto-assets among the transactions with tax consequences: a gift is a disposition.

• In general, you’re treated as disposing of the crypto at its fair market value, so you may have a capital gain (half of which is taxable) or a capital loss, even though no money changed hands.
• Gifts between spouses and common-law partners, and donations to registered charities, have their own rules, which can change the result. Check the CRA’s guidance for your situation.

See Canada crypto tax for how gains and the adjusted cost base work.

Practical tips

1. Record the value on the day of the gift, in your currency, and keep a screenshot or export as proof.
2. Give the recipient your purchase records (date and cost). They may need them to work out their own tax when they sell.
3. Use the recipient’s own wallet address, and check it carefully. Crypto sent to the wrong address usually can’t be recovered.
4. For charities, confirm they accept crypto directly and will issue a receipt that meets your country’s rules. Some use specialised donation platforms.
5. Don’t gift through an exchange you don’t trust. Moving crypto between platforms has fees: see exchange fees.
6. For large amounts, get advice. Gift, inheritance and estate rules interact in ways that a general guide can’t cover.