The Tax Treatment of Charitable Contributions of Cryptocurrency to Public                                       Charities and Private Foundations

The Tax Treatment of Charitable Contributions of Cryptocurrency to Public Charities and Private Foundations

Tax Law
By Anthony Diosdi Over the past two years cryptocurrency donations have greatly increased. This article will discuss the tax rules governing donating cryptocurrency and why it may be more preferable to donate cryptocurrency to a qualified charity than cash. Investors may find it far more beneficial to donate cryptocurrency to a public charity or a private foundation because the donated crypto asset may be eligible for a charitable deduction at its fair market value instead of its basis. This is consistent with the Internal Revenue Service‚Äôs  classification of cryptocurrency as an intangible personal property similar to stocks and bonds. Calculating the value of cryptocurrency being donated to a public charity or foundation depends on the holding period of the donor. If the donor holds the cryptocurrency for one year or…
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