Topic: 501(c)(3) approved : Donations to OpenSats will now officially be tax deductible (Read 105 times)
January 02, 2022, 12:53:29 AM
Note that donating bitcoins (or any property, really) worth more than $5000 takes extra effort. You must pay a "qualified appraiser" to do an appraisal of the bitcoins in order to determine their fair market value. Obviously, anybody can simply look up the price on an exchange, but that is not sufficient in this case.
December 30, 2021, 09:41:02 AM
The entity you are donating to will likely convert any coin you give them into USD. They will need to pay their bills and further their cause, which will ultimately be denominated in USD.
Personally, I see it as an encouragement for people to spend assets instead of converting them to dollars, and not all charities will convert Bitcoin into USD directly.There are many charities that accept appreciated property (such as stocks) as donations. There are tax reasons why people want to donate these assets (you noted them in the OP). Once a charity receives these assets, they will typically sell them.
December 30, 2021, 09:28:31 AM
is that people who have their bitcoin without KYC, and we have a few on the forum, will probably prefer to donate dollars to deduct the contribution.
At least it is a reason to use Bitcoin as a currency and not as an asset or stock to get more profits.The entity you are donating to will likely convert any coin you give them into USD. They will need to pay their bills and further their cause, which will ultimately be denominated in USD.
Personally, I see it as an encouragement for people to spend assets instead of converting them to dollars, and not all charities will convert Bitcoin into USD directly. December 29, 2021, 10:28:53 PM
The entity you are donating to will likely convert any coin you give them into USD. They will need to pay their bills and further their cause, which will ultimately be denominated in USD.
December 27, 2021, 02:23:17 AM
Sounds like good news to me, one more in the normalization of Bitcoin, the only thing I was thinking:
is that people who have their bitcoin without KYC, and we have a few on the forum, will probably prefer to donate dollars to deduct the contribution.
The idea is to stimulate charitable giving but if you intend to donate it is better to donate Bitcoin directly rather than donate with US dollars.
is that people who have their bitcoin without KYC, and we have a few on the forum, will probably prefer to donate dollars to deduct the contribution.
December 26, 2021, 07:48:51 AM
Donations to OpenSats, which are 100% passed through to #Bitcoin Core and FOSS contributors will now officially be tax deductible for all donors.
Source ---> https://twitter.com/OpenSats/status/1473443805848346624/photo/1
Source --> https://www.irs.gov/publications/p526#en_US_2020_publink1000229761
This is related to Bitcoin donations directly without the need to convert it into dollars and then donate dollars.
The idea is to stimulate charitable giving but if you intend to donate it is better to donate Bitcoin directly rather than donate with US dollars.
Source ---> https://twitter.com/OpenSats/status/1473443805848346624/photo/1
Quote
if you donate assets that would otherwise incur a long-term capital gain (such as BTC you bought more than a year ago...) then you get to deduct the FMV (subject to AGI-based limits & some other restrictions
Source --> https://www.irs.gov/publications/p526#en_US_2020_publink1000229761
This is related to Bitcoin donations directly without the need to convert it into dollars and then donate dollars.
The idea is to stimulate charitable giving but if you intend to donate it is better to donate Bitcoin directly rather than donate with US dollars.
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