What are some nontaxable events using crypto? Many may know that buying crypto such as Bitcoin is not a taxable event. However, records should be kept in order to have cost basis in case you dispose of your Bitcoin in the future. Sending crypto from a wallet to an exchange or other wallet that is under your control is not taxable. It is similar to transferring money from your checking account to your savings account. There was no disposition of crypto and no taxes are due. Other nontaxable events taxpayers may not be aware of include the following: Bona Fide Gifts-making gifts under the annual exclusion of $19,000 for 2025 is not taxable. No tax returns have to be fille out if this is your lone gift. Donations to charitable contributions are not taxable. However, you are eligible for a tax deduction for the crypto donation, provided it has been held for over a year. The deduction is equal to the FMV of crypto donated. You avoid paying capital gains on crypto donations. For gifts greater than $5,000, you will need an appraisal. Soft forks are not a taxable event. With a soft fork, a distributed ledger does not go under a protocol change that creates a new cryptocurrency. Therefore, no income is created. Holding crypto in a wallet or exchange but not earning any income is a nontaxable event. The increase in the price in crypto is not taxable unless the crypto is sold, exchanged or disposed of to make a purchase or payment. If you have any of these transactions, you can answer NO to the digital asset question on the tax return.