Topic: Donating Bitcoin and IRS form 8283 (Read 226 times)

I've done this.  You need an appraiser. E.g. https://cryptoappraisers.com/  (like ... maybe you can get away without one, but that seems ill advised.)
You can do it somewhat more efficiently if you're going to make many donations to do a large amount at once to a Donor Advised fund, e.g. Fidelity Chartable and then make further donations out of the trust-- because then you just have a single bitcoin donation.

i agree, and i reckon that's why there is an exemption for publicly listed securities. the regs obviously weren't written with bitcoin in mind. i'd like to think that exemption will eventually be expanded to include cryptocurrencies, though i wouldn't hold my breath.
considering the detail required on form 8283 and the legal liability they are taking on, i'm curious---what do you think a fair price would be?

While $120 won't break the bank, it is still ridiculous. It is a rent-seeking rate. The appraiser benefits from the regulation rather than any skill or expertise that they might have. You don't need an hour of a competent CPA's time to look up the price on coinmarketcap. Furthermore, a self-reported value cannot be abused because the IRS can easily check it.

$120 for a single donation (https://cryptoappraisers.com) isn't ridiculous---that's significantly less than 1 hour of billed time from a competent CPA. considering you're avoiding any capital gains taxes and also deducting the entire amount of the donation, $120 seems like an afterthought, especially if you're donating higher amounts.

gifting long term capital gain property = extremely lucrative tax breaks. if they just allowed large untaxed noncash donations without any documentation, that could be abused left and right, so they put the onus on the taxpayer to prove it.

Also, it really bothers me that the IRS requires me to pay someone a ridiculous amount of money to say that the donation is worth $X in their expert opinion, when all they did was copy down a number from coinmarketcap.

I've done this.  You need an appraiser. E.g. https://cryptoappraisers.com/  (like ... maybe you can get away without one, but that seems ill advised.)

You can do it somewhat more efficiently if you're going to make many donations to do a large amount at once to a Donor Advised fund, e.g. Fidelity Chartable and then make further donations out of the trust-- because then you just have a single bitcoin donation.

It's also advantageous to make a larger amount of donations in the same tax year because you can't write off the donation while using the (now pretty large) standard deduction-- so it's better to donate all at once in one year, don't use the standard deduction in that year, and then in other years continue to use the standard deduction.

I am thinking of donating more than $5000 worth of bitcoins to a charity and I am not clear about how to fill out IRS form 8283, especially the part where you must have the donation appraised.
Does anyone have any experience with this?
FYI, I want to donate the bitcoins directly rather than selling them first because I can avoid paying taxes on the donated bitcoins.

I am thinking of donating more than $5000 worth of bitcoins to a charity and I am not clear about how to fill out IRS form 8283, especially the part where you must have the donation appraised.

Does anyone have any experience with this?

FYI, I want to donate the bitcoins directly rather than selling them first because I can avoid paying taxes on the donated bitcoins.

If it were only that simple ...

Section A. Include in Section A only the following items.
1. Items (or groups of similar items as defined later) for
which you claimed a deduction of more than $500 but not
more than $5,000 per item (or group of similar items).
2. The following items even if the claimed value was
more than $5,000 per item (or group of similar items):
a. Securities listed on an exchange in which
quotations are published daily,
b. Securities regularly traded in national or regional
over-the-counter markets for which published quotations
are available,

*not tax advice*
I understand that the appraised fair market value would be the price of bitcoin times the number of bitcoin you are donating.
My advice would be to contract with a tax professional who is familiar with your individual tax situation to help you fill out this form.

Part I, Information on Donated Property

You must get a written appraisal from a qualified appraiser before completing Part I.

...

Part III, Declaration of Appraiser

If you had to get an appraisal, you must get it from a qualified appraiser. A qualified appraiser is an individual who meets all the following requirements as of the date the individual completes and signs the appraisal.
1. The individual either:
  a. Has earned a recognized appraiser designation from a generally recognized professional appraiser organization for demonstrated competency in valuing the type of property being appraised, or
  b. Has met certain minimum education requirements and has two or more years of experience in valuing the type of property being appraised. To meet the minimum education requirements the individual must have successfully completed professional or college-level coursework in valuing the type of property obtained from:
    i. a professional or college-level educational organization,
    ii. a generally recognized professional trade or appraiser organization that regularly offers educational programs, or
    iii. an employer as part of an employee apprenticeship or education program similar to professional or college-level courses.
2. The individual regularly prepares appraisals for which he or she is paid.
3. The appraiser makes a declaration in the appraisal that, because of his or her experience and education, he or she is qualified to make appraisals of the type of property being valued.
In addition, the appraiser must complete Part III of Form 8283. See section 170(f)(11)(E) and Regulations section 1.170A-16(d)(4) for details. ...

Firstly i am not american netizen but im curious about this so in there when you want to donate you should fill out form   why you just deposited into their address anonymously just tell the charity owner

I am thinking of donating more than $5000 worth of bitcoins to a charity and I am not clear about how to fill out form 8283, especially the part where you must have the donation appraised.

Does anyone have any experience with this?

FYI, I want to donate the bitcoins directly rather than selling them first because I can avoid paying taxes on the donated bitcoins.