Bitcoin Forum
September 22, 2018, 02:20:30 PM *
News: ♦♦ New info! Bitcoin Core users absolutely must upgrade to previously-announced 0.16.3 [Torrent]. All Bitcoin users should temporarily trust confirmations slightly less. More info.
 
   Home   Help Search Donate Login Register  
Pages: [1]
  Print  
Author Topic: Donating bitcoins - tax implications & deductions  (Read 2470 times)
keystroke
Hero Member
*****
Offline Offline

Activity: 868
Merit: 1005


advocate of a cryptographic attack on the globe


View Profile
August 25, 2013, 06:01:27 PM
 #1

When donating to a charity does it make tax sense to sell the coins first and donate cash? Or donate BTC directly? Anyone know how this works w/ deductions?

It seems like EFF says BTC can be donated like a stock.

 "You can now give Bitcoins to EFF in the same way that you can give stock.  EFF has long had a policy that converts gifts of stock and items like cars into cash immediately on receipt. We try to convert your donations into action as soon as possible."

Then again if you cash out - long term capital gains rates are 0% in certain income brackets.

"The difference between a castle and a prison is only a question of who holds the keys."
1537626030
Hero Member
*
Offline Offline

Posts: 1537626030

View Profile Personal Message (Offline)

Ignore
1537626030
Reply with quote  #2

1537626030
Report to moderator
1537626030
Hero Member
*
Offline Offline

Posts: 1537626030

View Profile Personal Message (Offline)

Ignore
1537626030
Reply with quote  #2

1537626030
Report to moderator
1537626030
Hero Member
*
Offline Offline

Posts: 1537626030

View Profile Personal Message (Offline)

Ignore
1537626030
Reply with quote  #2

1537626030
Report to moderator
Make a difference with your Ether.
Donate Ether for the greater good.
SPRING.WETRUST.IO
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here.
chris200x9
Legendary
*
Offline Offline

Activity: 1302
Merit: 1011


View Profile
August 25, 2013, 08:37:07 PM
 #2

I think it's best to cash out and donate cash, I mean unless you declare your bitcoin as income. How would it look to get audited and be like "Oh this donation is legit I did it with bitcoin though even though nowhere do I report my bitcoin earnings."
CobaltBlueD
Newbie
*
Offline Offline

Activity: 19
Merit: 0


View Profile
August 25, 2013, 09:32:01 PM
 #3

I love the idea of the donating via BTC.  Assuming you are worried about the write-off, I see two issues. BTC is more anonymous than the government would prefer.  Demonstrating you donated BTC has some inherent difficulties (at least with the US IRS).  The other item, I'm not sure how many flags I want to flag for the IRS.  Being audited is no fun.  Trying to explain BTC to the auditor would be quite a chore.
Stephen Gornick
Legendary
*
Offline Offline

Activity: 2506
Merit: 1001


View Profile
August 25, 2013, 10:44:20 PM
 #4

Assuming you are worried about the write-off, I see two issues. BTC is more anonymous than the government would prefer.

Charities accept cash and Bitcoin should actually be more desirable as it is a payment method that offers a form of triple entry accounting.  Triple entry is the most transparent method for bookeeping that other ledger systems for charities should emulate!

 - http://iang.org/papers/triple_entry.html
Pages: [1]
  Print  
 
Jump to:  

Sponsored by , a Bitcoin-accepting VPN.
Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!