Are there any specific tax considerations for cryptocurrency donations?

1 answers

• Dec 17, 2021 · 3 years ago
  When it comes to cryptocurrency donations, BYDFi wants to make sure you're aware of the specific tax considerations. Cryptocurrency is treated as property by the IRS, so donating it is similar to donating stocks or other assets. The tax deduction for cryptocurrency donations is based on the fair market value of the coins at the time of the donation. It's important to accurately determine the value of your coins at that specific time. If your total cryptocurrency donations exceed $500, you may need to fill out Form 8283 and have a qualified appraisal. To ensure compliance with tax laws, it's recommended to consult with a tax professional who is knowledgeable about cryptocurrency.
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