Do I answer yes to the crypto tax question if I gifted an NFT to someone

I gifted an NFT that I bought in 2021 to a friend in 2022. The NFT wasn’t worth very much, maybe $10 or so. I did not receive anything in return. Do I have to answer yes on the crypto tax question on form 1040?

Question: ‍“At any time during 2022, did you (a) receive (as a reward, award, or payment for property or services); or (b) sell, exchange, gift, or otherwise dispose of a digital asset (or a financial interest in a digital asset)?”

Since the NFT is a gift and the amount of the gift is under the gift tax limit, I don’t think I would have to report it on form 8949. However, would it trigger an audit if I answered “Yes” and did not include any NFT/crypto transactions on the 8949?

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1 thought on “Do I answer yes to the crypto tax question if I gifted an NFT to someone”

  1. Safest answer is to answer yes, but I would include an explanation with it.
    I think most tax software programs will then require an 8949.

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