Wondering About Crypto Gains and Taxes?
Now’s the time to get a deduction or offset your gains.
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 and other cryptocurrencies can have exceptional benefits for your pocket and causes you support.
We recently partnered with Bitcoin.Tax to make donating to offset or reduce your tax liability easy! Visit their site and listen to our recent podcast ‘Utilizing the Blockchain for Social Good‘ with Bitcoin.Tax and learn a lot more about how your donations can help those in need, and can also provide tax benefits.
We’ve put together some information below that we hope you find useful this tax season and year-round.
- Donations must be made BEFORE TAX YEAR END (December 31)
- Capital gains on BTC and other cryptocurrencies are taxable
- Even though the market is ‘down,’ depending on when your first bought your cryptocurrency you may still have gains
- In past years, many people may not have reported their gains, but the IRS is now clued in and notifying crypto users
- Donations are a great way to give back & reduce taxes
- IRS guidance defines bitcoin as ‘property’
- Donor has the onus to value the donation in USD
Options for write-offs:
- Make a typical charitable donation: convert BTC to USD, pay taxes on the gains, and then donate in USD … but why?
- Choose a charity that accepts bitcoin and other cryptocurrencies: get the write-off or offset, but know that the majority of charities will immediately convert it to USD
- Donor-advised fund: donate in BTC (or other cryptos?) with the help of a management fund and choose among charities they offer (the Fund converts your contribution to USD and makes contribution to the charity) or …
- GiveTrack projects and BitGive!
Triple the Benefit with GiveTrack Projects and BitGive:
- Offset capital gains to reduce or eliminate taxes
- We hold in cryptocurrency, so the value keeps growing
- Any gains we continue to receive are tax free!
Bitcoin.Tax Can Help:
- Calculate short- & long- term gains across multiple bitcoin and cryptocurrency accounts
- Calculate the option to donate to offset gains
- Go learn more now at Bitcoin.Tax while you still have the opportunity to reduce your tax liability and help others!
Donating cryptocurrencies can really make a global impact! Your donations help those in need, and can also provide tax benefits.
Tips for Navigating the Process:
- IRS Form 8283, Section A is required for gifts of property valued over $500
- IRS requires an appraisal for donations of property that are valued over $5K
Options to Support:
- GiveTrack Global NGO partner projects
- One-time Donation to BitGive
- Sustaining Donor Program
- Individual Membership
PLEASE NOTE: This is not official tax or legal advice. Please consult your tax adviser for information about appropriate filing and record keeping.