It’s Tax Season! Get Triple the Benefits by Donating Bitcoin
Support a good cause vs. pay Uncle Sam?
It's that time of year again where you have a chance to make tax deductible donations to reduce your taxable income and capital gains. Donating bitcoin can have exceptional benefits for your pocket and causes you support.
We've put together some information below that we hope you find useful this tax season and year-round.
- Capital gains on BTC are taxable
- BTC has gone up a LOT just this year alone (!)
- Many may have not reported, but those days have gone
- Donations are a great way to give back & reduce taxes
- IRS guidance defines bitcoin as ‘property'
- Nonprofit issues the receipt in bitcoin
- Donor has the onus to value the donation in USD
Options for write-offs:
- Typical charitable donation: convert BTC to USD, pay taxes on the gains, and then donate in USD
- Charity that accepts bitcoin: get the write-off, but the majority of charities will immediately convert it to USD
- Donor-advised fund: donate in BTC with the help of a management fund and choose any charity (Fund converts to USD).
Triple the Benefit with BitGive:
- Offset capital gains to reduce or eliminate taxes.
- We hold in BTC, so the value keeps growing 🚀
- Any gains we continue to receive are tax free!
Tips for Navigating the Process:
- Stay under $5k USD equivalent per BTC donation, you can make multiple donations to the same charity
- IRS requires an appraisal for donations of property that are valued over $5k
- IRS Form 8283, Section A is required for gifts of property valued over $500