Topic: Avoid U.S. Taxes on Bitcoin. Give to Charity. - page 2. (Read 6640 times)
i don't think i'm quite comfortable with donating via bitcoins.. it's irreversible, and someone can steal the bitcoins without being within my presence. there are just too many ways for scammers to scam with bitcoin.
Just wanted to say that this is a great idea and what I've been planning to do since I got into BTC. A lot of these comments are negative, just wanted to say I agree and glad someone else is thinking along these lines. This is a powerful vehicle for contributing to worthy causes.
With all the moaning and complaining about the impact of the recent IRS statement on the tax-ability of bitcoin, most have overlooked one good outcome of this clarification. One that hopefully will unleash even more philanthropy in our bitcoin community.
Under current IRS guidance, dispositions (sales and spendings) of bitcoin are a taxable event. Bitcoin is property and when it's sold or spent, an individual must calculate the gain or loss on that transaction and report it as a capital gain or loss on his/her Federal Income Tax filing.
Except for this: Bitcoin that has been held for more than a year and gone up in value can be donated to a recognized charity without having to report any taxable gain to the IRS; what's more, one can take a deduction for its full market value at the time of donation. Donations of appreciated bitcoin held a year or less are still deductible, but their gains in value must also be recognized (and taxed).
This often overlooked fact turns a significant negative into a strong positive. Don't sell or spend profitable long-term holdings of bitcoin. Inasmuch as you can, donate them to charity and buy yourself a double tax break with your generosity.
There is a long section on Contributions of Property found here: http://www.irs.gov/publications/p526/ar02.html#en_US_2013_publink1000229703
Here you'll find more specific information in the sections Giving Property That Has Increased in Value -- Ordinary Income Property & Capital Gain Property: http://www.irs.gov/publications/p526/ar02.html#en_US_2013_publink1000229755
The IRS Guidance Summary is here: http://www.irs.gov/uac/Newsroom/IRS-Virtual-Currency-Guidance
Example: Let's say in 2014 you have taxable income of $100k and thus you were in a 25% marginal tax bracket; and you itemize deductions on Schedule A. You have $3000 worth bitcoin (present value) to sell/spend or donate; for those coins, you paid $1000 more than a year before.
If you sell or spend those bitcoin, you will pay $300-560 in Federal taxes ($2000 gain X 15-28%), depending on what tax rate is applied. And you might also pay state income taxes; at say 5%, that's another $100.
If you donate the $3000 worth of bitcoin to a charity, you pay no Federal or state tax, and you pick up a tax benefit of $750 in the Sch A deduction of $3000; that is, $3000 X 25%.
References: See what T. Rowe Price and Fidelity have to say about this strategy.
http://programforgiving.org/charitable/pages/donatingAppreciatedAssets.jsp
http://www.fidelitycharitable.org/giving-strategies/tax-estate-planning/appreciated-securities.shtml
Under current IRS guidance, dispositions (sales and spendings) of bitcoin are a taxable event. Bitcoin is property and when it's sold or spent, an individual must calculate the gain or loss on that transaction and report it as a capital gain or loss on his/her Federal Income Tax filing.
Except for this: Bitcoin that has been held for more than a year and gone up in value can be donated to a recognized charity without having to report any taxable gain to the IRS; what's more, one can take a deduction for its full market value at the time of donation. Donations of appreciated bitcoin held a year or less are still deductible, but their gains in value must also be recognized (and taxed).
This often overlooked fact turns a significant negative into a strong positive. Don't sell or spend profitable long-term holdings of bitcoin. Inasmuch as you can, donate them to charity and buy yourself a double tax break with your generosity.
There is a long section on Contributions of Property found here: http://www.irs.gov/publications/p526/ar02.html#en_US_2013_publink1000229703
Here you'll find more specific information in the sections Giving Property That Has Increased in Value -- Ordinary Income Property & Capital Gain Property: http://www.irs.gov/publications/p526/ar02.html#en_US_2013_publink1000229755
The IRS Guidance Summary is here: http://www.irs.gov/uac/Newsroom/IRS-Virtual-Currency-Guidance
Example: Let's say in 2014 you have taxable income of $100k and thus you were in a 25% marginal tax bracket; and you itemize deductions on Schedule A. You have $3000 worth bitcoin (present value) to sell/spend or donate; for those coins, you paid $1000 more than a year before.
If you sell or spend those bitcoin, you will pay $300-560 in Federal taxes ($2000 gain X 15-28%), depending on what tax rate is applied. And you might also pay state income taxes; at say 5%, that's another $100.
If you donate the $3000 worth of bitcoin to a charity, you pay no Federal or state tax, and you pick up a tax benefit of $750 in the Sch A deduction of $3000; that is, $3000 X 25%.
References: See what T. Rowe Price and Fidelity have to say about this strategy.
http://programforgiving.org/charitable/pages/donatingAppreciatedAssets.jsp
http://www.fidelitycharitable.org/giving-strategies/tax-estate-planning/appreciated-securities.shtml
Ok, so I do a bunch of work, spend a gazillion dollars to gain a ton of Bitcoins and then give them all away so I don't have to pay taxes?
Are you on drugs?
I think the point is that you can donate some of your bitcoins and then use that as a deductible to lower your taxes on whatever fiat you make, thereby 1) Doing a good deed and 2) Giving yourself a tax break on your 9-5'er income.
Sorry, Charlie!
ALL of my income is derived online.
I utilise proper business setups to minimise my taxes but do not have nearly enough money to engage in philanthropy.
There are very few Andrew Carnegie types in the crypto world.
there are very few carnegie types in the world, period. and if you are extremely wealthy, it is more likely that you are crude and don't give a fuck about others.. it's about climbing the ladder after all.
With all the moaning and complaining about the impact of the recent IRS statement on the tax-ability of bitcoin, most have overlooked one good outcome of this clarification. One that hopefully will unleash even more philanthropy in our bitcoin community.
Under current IRS guidance, dispositions (sales and spendings) of bitcoin are a taxable event. Bitcoin is property and when it's sold or spent, an individual must calculate the gain or loss on that transaction and report it as a capital gain or loss on his/her Federal Income Tax filing.
Except for this: Bitcoin that has been held for more than a year and gone up in value can be donated to a recognized charity without having to report any taxable gain to the IRS; what's more, one can take a deduction for its full market value at the time of donation. Donations of appreciated bitcoin held a year or less are still deductible, but their gains in value must also be recognized (and taxed).
This often overlooked fact turns a significant negative into a strong positive. Don't sell or spend profitable long-term holdings of bitcoin. Inasmuch as you can, donate them to charity and buy yourself a double tax break with your generosity.
There is a long section on Contributions of Property found here: http://www.irs.gov/publications/p526/ar02.html#en_US_2013_publink1000229703
Here you'll find more specific information in the sections Giving Property That Has Increased in Value -- Ordinary Income Property & Capital Gain Property: http://www.irs.gov/publications/p526/ar02.html#en_US_2013_publink1000229755
The IRS Guidance Summary is here: http://www.irs.gov/uac/Newsroom/IRS-Virtual-Currency-Guidance
Example: Let's say in 2014 you have taxable income of $100k and thus you were in a 25% marginal tax bracket; and you itemize deductions on Schedule A. You have $3000 worth bitcoin (present value) to sell/spend or donate; for those coins, you paid $1000 more than a year before.
If you sell or spend those bitcoin, you will pay $300-560 in Federal taxes ($2000 gain X 15-28%), depending on what tax rate is applied. And you might also pay state income taxes; at say 5%, that's another $100.
If you donate the $3000 worth of bitcoin to a charity, you pay no Federal or state tax, and you pick up a tax benefit of $750 in the Sch A deduction of $3000; that is, $3000 X 25%.
References: See what T. Rowe Price and Fidelity have to say about this strategy.
http://programforgiving.org/charitable/pages/donatingAppreciatedAssets.jsp
http://www.fidelitycharitable.org/giving-strategies/tax-estate-planning/appreciated-securities.shtml
Under current IRS guidance, dispositions (sales and spendings) of bitcoin are a taxable event. Bitcoin is property and when it's sold or spent, an individual must calculate the gain or loss on that transaction and report it as a capital gain or loss on his/her Federal Income Tax filing.
Except for this: Bitcoin that has been held for more than a year and gone up in value can be donated to a recognized charity without having to report any taxable gain to the IRS; what's more, one can take a deduction for its full market value at the time of donation. Donations of appreciated bitcoin held a year or less are still deductible, but their gains in value must also be recognized (and taxed).
This often overlooked fact turns a significant negative into a strong positive. Don't sell or spend profitable long-term holdings of bitcoin. Inasmuch as you can, donate them to charity and buy yourself a double tax break with your generosity.
There is a long section on Contributions of Property found here: http://www.irs.gov/publications/p526/ar02.html#en_US_2013_publink1000229703
Here you'll find more specific information in the sections Giving Property That Has Increased in Value -- Ordinary Income Property & Capital Gain Property: http://www.irs.gov/publications/p526/ar02.html#en_US_2013_publink1000229755
The IRS Guidance Summary is here: http://www.irs.gov/uac/Newsroom/IRS-Virtual-Currency-Guidance
Example: Let's say in 2014 you have taxable income of $100k and thus you were in a 25% marginal tax bracket; and you itemize deductions on Schedule A. You have $3000 worth bitcoin (present value) to sell/spend or donate; for those coins, you paid $1000 more than a year before.
If you sell or spend those bitcoin, you will pay $300-560 in Federal taxes ($2000 gain X 15-28%), depending on what tax rate is applied. And you might also pay state income taxes; at say 5%, that's another $100.
If you donate the $3000 worth of bitcoin to a charity, you pay no Federal or state tax, and you pick up a tax benefit of $750 in the Sch A deduction of $3000; that is, $3000 X 25%.
References: See what T. Rowe Price and Fidelity have to say about this strategy.
http://programforgiving.org/charitable/pages/donatingAppreciatedAssets.jsp
http://www.fidelitycharitable.org/giving-strategies/tax-estate-planning/appreciated-securities.shtml
Ok, so I do a bunch of work, spend a gazillion dollars to gain a ton of Bitcoins and then give them all away so I don't have to pay taxes?
Are you on drugs?
I think the point is that you can donate some of your bitcoins and then use that as a deductible to lower your taxes on whatever fiat you make, thereby 1) Doing a good deed and 2) Giving yourself a tax break on your 9-5'er income.
Sorry, Charlie!
ALL of my income is derived online.
I utilise proper business setups to minimise my taxes but do not have nearly enough money to engage in philanthropy.
There are very few Andrew Carnegie types in the crypto world.
With all the moaning and complaining about the impact of the recent IRS statement on the tax-ability of bitcoin, most have overlooked one good outcome of this clarification. One that hopefully will unleash even more philanthropy in our bitcoin community.
Under current IRS guidance, dispositions (sales and spendings) of bitcoin are a taxable event. Bitcoin is property and when it's sold or spent, an individual must calculate the gain or loss on that transaction and report it as a capital gain or loss on his/her Federal Income Tax filing.
Except for this: Bitcoin that has been held for more than a year and gone up in value can be donated to a recognized charity without having to report any taxable gain to the IRS; what's more, one can take a deduction for its full market value at the time of donation. Donations of appreciated bitcoin held a year or less are still deductible, but their gains in value must also be recognized (and taxed).
This often overlooked fact turns a significant negative into a strong positive. Don't sell or spend profitable long-term holdings of bitcoin. Inasmuch as you can, donate them to charity and buy yourself a double tax break with your generosity.
There is a long section on Contributions of Property found here: http://www.irs.gov/publications/p526/ar02.html#en_US_2013_publink1000229703
Here you'll find more specific information in the sections Giving Property That Has Increased in Value -- Ordinary Income Property & Capital Gain Property: http://www.irs.gov/publications/p526/ar02.html#en_US_2013_publink1000229755
The IRS Guidance Summary is here: http://www.irs.gov/uac/Newsroom/IRS-Virtual-Currency-Guidance
Example: Let's say in 2014 you have taxable income of $100k and thus you were in a 25% marginal tax bracket; and you itemize deductions on Schedule A. You have $3000 worth bitcoin (present value) to sell/spend or donate; for those coins, you paid $1000 more than a year before.
If you sell or spend those bitcoin, you will pay $300-560 in Federal taxes ($2000 gain X 15-28%), depending on what tax rate is applied. And you might also pay state income taxes; at say 5%, that's another $100.
If you donate the $3000 worth of bitcoin to a charity, you pay no Federal or state tax, and you pick up a tax benefit of $750 in the Sch A deduction of $3000; that is, $3000 X 25%.
References: See what T. Rowe Price and Fidelity have to say about this strategy.
http://programforgiving.org/charitable/pages/donatingAppreciatedAssets.jsp
http://www.fidelitycharitable.org/giving-strategies/tax-estate-planning/appreciated-securities.shtml
Under current IRS guidance, dispositions (sales and spendings) of bitcoin are a taxable event. Bitcoin is property and when it's sold or spent, an individual must calculate the gain or loss on that transaction and report it as a capital gain or loss on his/her Federal Income Tax filing.
Except for this: Bitcoin that has been held for more than a year and gone up in value can be donated to a recognized charity without having to report any taxable gain to the IRS; what's more, one can take a deduction for its full market value at the time of donation. Donations of appreciated bitcoin held a year or less are still deductible, but their gains in value must also be recognized (and taxed).
This often overlooked fact turns a significant negative into a strong positive. Don't sell or spend profitable long-term holdings of bitcoin. Inasmuch as you can, donate them to charity and buy yourself a double tax break with your generosity.
There is a long section on Contributions of Property found here: http://www.irs.gov/publications/p526/ar02.html#en_US_2013_publink1000229703
Here you'll find more specific information in the sections Giving Property That Has Increased in Value -- Ordinary Income Property & Capital Gain Property: http://www.irs.gov/publications/p526/ar02.html#en_US_2013_publink1000229755
The IRS Guidance Summary is here: http://www.irs.gov/uac/Newsroom/IRS-Virtual-Currency-Guidance
Example: Let's say in 2014 you have taxable income of $100k and thus you were in a 25% marginal tax bracket; and you itemize deductions on Schedule A. You have $3000 worth bitcoin (present value) to sell/spend or donate; for those coins, you paid $1000 more than a year before.
If you sell or spend those bitcoin, you will pay $300-560 in Federal taxes ($2000 gain X 15-28%), depending on what tax rate is applied. And you might also pay state income taxes; at say 5%, that's another $100.
If you donate the $3000 worth of bitcoin to a charity, you pay no Federal or state tax, and you pick up a tax benefit of $750 in the Sch A deduction of $3000; that is, $3000 X 25%.
References: See what T. Rowe Price and Fidelity have to say about this strategy.
http://programforgiving.org/charitable/pages/donatingAppreciatedAssets.jsp
http://www.fidelitycharitable.org/giving-strategies/tax-estate-planning/appreciated-securities.shtml
Ok, so I do a bunch of work, spend a gazillion dollars to gain a ton of Bitcoins and then give them all away so I don't have to pay taxes?
Are you on drugs?
I think the point is that you can donate some of your bitcoins and then use that as a deductible to lower your taxes on whatever fiat you make, thereby 1) Doing a good deed and 2) Giving yourself a tax break on your 9-5'er income.
Its nice to give btc to charity but I don't think it will be good to violate rules.
Exactly. That's why I started this topic. I pointed to the IRS's own rules that apply to donating bitcoin to charity -- rules that have not been discussed in any other writing about the IRS crypto guidance that I've seen. So many in our community may not even know about them. Some people don't care -- they've decided to violate U.S. law and not pay any taxes on their sales or spendings of bitcoin. But for those of us who have decided to be compliant with the law (however we think it's wrong and may not like it) the knowledge in this PSA can be very helpful. hero member
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I prefer Zakir over Muhammed when mentioning me!
Its nice to give btc to charity but I don't think it will be good to violate rules.
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With all the moaning and complaining about the impact of the recent IRS statement on the tax-ability of bitcoin, most have overlooked one good outcome of this clarification. One that hopefully will unleash even more philanthropy in our bitcoin community.
Under current IRS guidance, dispositions (sales and spendings) of bitcoin are a taxable event. Bitcoin is property and when it's sold or spent, an individual must calculate the gain or loss on that transaction and report it as a capital gain or loss on his/her Federal Income Tax filing.
Except for this: Bitcoin that has been held for more than a year and gone up in value can be donated to a recognized charity without having to report any taxable gain to the IRS; what's more, one can take a deduction for its full market value at the time of donation. Donations of appreciated bitcoin held a year or less are still deductible, but their gains in value must also be recognized (and taxed).
This often overlooked fact turns a significant negative into a strong positive. Don't sell or spend profitable long-term holdings of bitcoin. Inasmuch as you can, donate them to charity and buy yourself a double tax break with your generosity.
There is a long section on Contributions of Property found here: http://www.irs.gov/publications/p526/ar02.html#en_US_2013_publink1000229703
Here you'll find more specific information in the sections Giving Property That Has Increased in Value -- Ordinary Income Property & Capital Gain Property: http://www.irs.gov/publications/p526/ar02.html#en_US_2013_publink1000229755
The IRS Guidance Summary is here: http://www.irs.gov/uac/Newsroom/IRS-Virtual-Currency-Guidance
Example: Let's say in 2014 you have taxable income of $100k and thus you were in a 25% marginal tax bracket; and you itemize deductions on Schedule A. You have $3000 worth bitcoin (present value) to sell/spend or donate; for those coins, you paid $1000 more than a year before.
If you sell or spend those bitcoin, you will pay $300-560 in Federal taxes ($2000 gain X 15-28%), depending on what tax rate is applied. And you might also pay state income taxes; at say 5%, that's another $100.
If you donate the $3000 worth of bitcoin to a charity, you pay no Federal or state tax, and you pick up a tax benefit of $750 in the Sch A deduction of $3000; that is, $3000 X 25%.
References: See what T. Rowe Price and Fidelity have to say about this strategy.
http://programforgiving.org/charitable/pages/donatingAppreciatedAssets.jsp
http://www.fidelitycharitable.org/giving-strategies/tax-estate-planning/appreciated-securities.shtml
Under current IRS guidance, dispositions (sales and spendings) of bitcoin are a taxable event. Bitcoin is property and when it's sold or spent, an individual must calculate the gain or loss on that transaction and report it as a capital gain or loss on his/her Federal Income Tax filing.
Except for this: Bitcoin that has been held for more than a year and gone up in value can be donated to a recognized charity without having to report any taxable gain to the IRS; what's more, one can take a deduction for its full market value at the time of donation. Donations of appreciated bitcoin held a year or less are still deductible, but their gains in value must also be recognized (and taxed).
This often overlooked fact turns a significant negative into a strong positive. Don't sell or spend profitable long-term holdings of bitcoin. Inasmuch as you can, donate them to charity and buy yourself a double tax break with your generosity.
There is a long section on Contributions of Property found here: http://www.irs.gov/publications/p526/ar02.html#en_US_2013_publink1000229703
Here you'll find more specific information in the sections Giving Property That Has Increased in Value -- Ordinary Income Property & Capital Gain Property: http://www.irs.gov/publications/p526/ar02.html#en_US_2013_publink1000229755
The IRS Guidance Summary is here: http://www.irs.gov/uac/Newsroom/IRS-Virtual-Currency-Guidance
Example: Let's say in 2014 you have taxable income of $100k and thus you were in a 25% marginal tax bracket; and you itemize deductions on Schedule A. You have $3000 worth bitcoin (present value) to sell/spend or donate; for those coins, you paid $1000 more than a year before.
If you sell or spend those bitcoin, you will pay $300-560 in Federal taxes ($2000 gain X 15-28%), depending on what tax rate is applied. And you might also pay state income taxes; at say 5%, that's another $100.
If you donate the $3000 worth of bitcoin to a charity, you pay no Federal or state tax, and you pick up a tax benefit of $750 in the Sch A deduction of $3000; that is, $3000 X 25%.
References: See what T. Rowe Price and Fidelity have to say about this strategy.
http://programforgiving.org/charitable/pages/donatingAppreciatedAssets.jsp
http://www.fidelitycharitable.org/giving-strategies/tax-estate-planning/appreciated-securities.shtml
Ok, so I do a bunch of work, spend a gazillion dollars to gain a ton of Bitcoins and then give them all away so I don't have to pay taxes?
Are you on drugs?
I believe the OP has a good point. I mean why not help a good cause and be able to deduct some $ from your taxes for doing a good dead?
Ok, so I do a bunch of work, spend a gazillion dollars to gain a ton of Bitcoins and then give them all away so I don't have to pay taxes? Are you on drugs?
Not on drugs, not the profile of most of us here, not the point of the post.Some of us give some of our bitcoin to charities, and it's good to know this way to turn tax on those gifts into no-tax and even tax-deduction. Some haven't given, thinking all gifts are shackled with tax liability under the current regime. This is just a PSA to these two sub-groups of our community, documenting a little known benefit of the IRS guidance.
With all the moaning and complaining about the impact of the recent IRS statement on the tax-ability of bitcoin, most have overlooked one good outcome of this clarification. One that hopefully will unleash even more philanthropy in our bitcoin community.
Under current IRS guidance, dispositions (sales and spendings) of bitcoin are a taxable event. Bitcoin is property and when it's sold or spent, an individual must calculate the gain or loss on that transaction and report it as a capital gain or loss on his/her Federal Income Tax filing.
Except for this: Bitcoin that has been held for more than a year and gone up in value can be donated to a recognized charity without having to report any taxable gain to the IRS; what's more, one can take a deduction for its full market value at the time of donation. Donations of appreciated bitcoin held a year or less are still deductible, but their gains in value must also be recognized (and taxed).
This often overlooked fact turns a significant negative into a strong positive. Don't sell or spend profitable long-term holdings of bitcoin. Inasmuch as you can, donate them to charity and buy yourself a double tax break with your generosity.
There is a long section on Contributions of Property found here: http://www.irs.gov/publications/p526/ar02.html#en_US_2013_publink1000229703
Here you'll find more specific information in the sections Giving Property That Has Increased in Value -- Ordinary Income Property & Capital Gain Property: http://www.irs.gov/publications/p526/ar02.html#en_US_2013_publink1000229755
The IRS Guidance Summary is here: http://www.irs.gov/uac/Newsroom/IRS-Virtual-Currency-Guidance
Example: Let's say in 2014 you have taxable income of $100k and thus you were in a 25% marginal tax bracket; and you itemize deductions on Schedule A. You have $3000 worth bitcoin (present value) to sell/spend or donate; for those coins, you paid $1000 more than a year before.
If you sell or spend those bitcoin, you will pay $300-560 in Federal taxes ($2000 gain X 15-28%), depending on what tax rate is applied. And you might also pay state income taxes; at say 5%, that's another $100.
If you donate the $3000 worth of bitcoin to a charity, you pay no Federal or state tax, and you pick up a tax benefit of $750 in the Sch A deduction of $3000; that is, $3000 X 25%.
References: See what T. Rowe Price and Fidelity have to say about this strategy.
http://programforgiving.org/charitable/pages/donatingAppreciatedAssets.jsp
http://www.fidelitycharitable.org/giving-strategies/tax-estate-planning/appreciated-securities.shtml
Under current IRS guidance, dispositions (sales and spendings) of bitcoin are a taxable event. Bitcoin is property and when it's sold or spent, an individual must calculate the gain or loss on that transaction and report it as a capital gain or loss on his/her Federal Income Tax filing.
Except for this: Bitcoin that has been held for more than a year and gone up in value can be donated to a recognized charity without having to report any taxable gain to the IRS; what's more, one can take a deduction for its full market value at the time of donation. Donations of appreciated bitcoin held a year or less are still deductible, but their gains in value must also be recognized (and taxed).
This often overlooked fact turns a significant negative into a strong positive. Don't sell or spend profitable long-term holdings of bitcoin. Inasmuch as you can, donate them to charity and buy yourself a double tax break with your generosity.
There is a long section on Contributions of Property found here: http://www.irs.gov/publications/p526/ar02.html#en_US_2013_publink1000229703
Here you'll find more specific information in the sections Giving Property That Has Increased in Value -- Ordinary Income Property & Capital Gain Property: http://www.irs.gov/publications/p526/ar02.html#en_US_2013_publink1000229755
The IRS Guidance Summary is here: http://www.irs.gov/uac/Newsroom/IRS-Virtual-Currency-Guidance
Example: Let's say in 2014 you have taxable income of $100k and thus you were in a 25% marginal tax bracket; and you itemize deductions on Schedule A. You have $3000 worth bitcoin (present value) to sell/spend or donate; for those coins, you paid $1000 more than a year before.
If you sell or spend those bitcoin, you will pay $300-560 in Federal taxes ($2000 gain X 15-28%), depending on what tax rate is applied. And you might also pay state income taxes; at say 5%, that's another $100.
If you donate the $3000 worth of bitcoin to a charity, you pay no Federal or state tax, and you pick up a tax benefit of $750 in the Sch A deduction of $3000; that is, $3000 X 25%.
References: See what T. Rowe Price and Fidelity have to say about this strategy.
http://programforgiving.org/charitable/pages/donatingAppreciatedAssets.jsp
http://www.fidelitycharitable.org/giving-strategies/tax-estate-planning/appreciated-securities.shtml
Ok, so I do a bunch of work, spend a gazillion dollars to gain a ton of Bitcoins and then give them all away so I don't have to pay taxes?
Are you on drugs?
This is brilliant. A good cause, and a way to make more money, combined. I would do this if I had the proper amount of bitcoins. But I plan on saving them!
Red Cross is a good choice. I have donated some dollars last month.
You donated dollars, not bitcoin?Dollars to a charity -- nothing new.
Bitcoin to the Red Cross -- I didn't know they received donations in bitcoin yet. Yes?
If you want to avoid taxes by not making money just buy high and sell low.
Red Cross is a good choice. I have donated some dollars last month.
...
If you're still operating under a paradigm of asking permission, you clearly don't understand its potential power.
Understood and respected! However, how many are ready to do jail time for their beliefs? If someone wants to test the IRS over this, I'll kick in a little for their legal defense fund. If you're still operating under a paradigm of asking permission, you clearly don't understand its potential power.
so this brings up an interesting topic.. if you want to evade paying taxes and have a lot of bitcoins, just start up your own non-profit charity.
Lol...nice idea, but your taxes may look a little fishy if you have huge bitcoin capital gains and now all the sudden you are the proud owner of a brand new non-profit organization haha
ORRRR
we can push for mass adoption and force the IRS to explain why it figures it has the right to money it did not provide, earn, or distribute.
And "just because we fucking said so" isn't the correct answer.
we can push for mass adoption and force the IRS to explain why it figures it has the right to money it did not provide, earn, or distribute.
And "just because we fucking said so" isn't the correct answer.
The correct answer is "Because we are backed by men with guns if you don't do what we say you will end up in a cage for a pretty long time".
That's the answer of a coward.
Where's your line in the sand?
ORRRR
we can push for mass adoption and force the IRS to explain why it figures it has the right to money it did not provide, earn, or distribute.
And "just because we fucking said so" isn't the correct answer.
we can push for mass adoption and force the IRS to explain why it figures it has the right to money it did not provide, earn, or distribute.
And "just because we fucking said so" isn't the correct answer.
The correct answer is "Because we are backed by men with guns if you don't do what we say you will end up in a cage for a pretty long time".
ORRRR
we can push for mass adoption and force the IRS to explain why it figures it has the right to money it did not provide, earn, or distribute.
And "just because we fucking said so" isn't the correct answer.
If you understand the power leverage bitcoin returns to you, then government and irs and all this becomes less "dark evil empire" and more "greedy criminal jackasses in suits" and you can deal more effectively with them as the criminals they are.
Stop fearing all this. Bitcoin is utterly useless to you if the only thing you do is continue begging permission from governments. Please let us use bitcoin, please tell me again how much to send you, please take as much as you deem fit because of evil drug users...
If you're still operating under a paradigm of asking permission, you clearly don't understand its potential power.
we can push for mass adoption and force the IRS to explain why it figures it has the right to money it did not provide, earn, or distribute.
And "just because we fucking said so" isn't the correct answer.
If you understand the power leverage bitcoin returns to you, then government and irs and all this becomes less "dark evil empire" and more "greedy criminal jackasses in suits" and you can deal more effectively with them as the criminals they are.
Stop fearing all this. Bitcoin is utterly useless to you if the only thing you do is continue begging permission from governments. Please let us use bitcoin, please tell me again how much to send you, please take as much as you deem fit because of evil drug users...
If you're still operating under a paradigm of asking permission, you clearly don't understand its potential power.
Quoted for awesomeness. I like to think that we will eventually stop thinking and acting like serfs but old habits do die hard.
Just don't convert to fiat and you are in the clear either way. Long term that is probably the best return on investment as well if BTC goes "to the moon" as we all predict.
i think you are still liable for paying taxes once you use the bitcoins though. bitcoin is treated as an asset by the IRS, not a currency.
Yes I forgot that part of the equation and I intend to go on forgetting it.
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