Author Topic: Tax on buying bitcoin for a friend  (Read 2 times)

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Tax on buying bitcoin for a friend
« on: July 12, 2019, 05:46:37 PM »
Hello,

Newbie here, just registered.

I was having problem purchasing bitcoin, Ethereum and Litecoin from coinbase so I asked my friend to purchase some for me and keep it in coinbase/GDAX (just keep it and not trade) until I receive my Ledger Nano S hardware wallet. He'll transfer them once I get my wallet (I have a blockchain wallet, but I don't want to use that) and I have already paid him for the exact amount that he brought for. He did not sell it to me for any gains. So my question is does my friend have to report his purchase to the IRS after he transfer them to me? I keep a record of all the purchases including the date and time as well as the price, will my basis price be the same price my friend brought at?

Also should I ask my friend to continue keep it on coinbase/GDAX or transfer them to a temporary wallet until my ledger nano s arrive?

Thank you so much!