Instead, your Crypto tax may be donated to charity
Cryptocurrencies have become one of the easiest ways to donate to charity without the funds being transferred to third parties.
The cryptocurrency community is extremely knowledgeable about finance and insights. While everyone is calling for cryptocurrency acceptance, and many merchants accept cryptocurrencies as payment, most people want to accumulate more cryptocurrencies, not spending them. The holders think it will be more valuable in the future, so why spend it now?
Spending Bitcoin (BTC) at Starbucks for a cup of coffee is a huge pain at the side. While the transaction itself can be relatively painless with the help of a mobile app, the accounting and tax implications can be intimidating if you trade regularly. This is because the US Internal Revenue Service classifies cryptocurrencies as assets, meaning that if it is appreciated, you owe interest on the amount that is appreciated at the time you use it. No one wants to find out their tax liability for a $ 2 cup of coffee.
So when does it really make sense to use cryptocurrency? Once it actually benefits you financially it may surprise you: donations. Listen to me. Similar tax laws make it difficult to use cryptocurrencies to buy coffee, making donations to your favorite charity extremely efficient. You not only do well but also reduce taxes and save money in the process. Sure, sounds too good to be true.
How to donate in electronic money
When you donate cryptocurrencies, everyone wins - except for the IRS. That's because when you donate cryptocurrencies directly to a nonprofit, it's not a taxable event, meaning you don't have to pay capital gains tax and you can deduct it from your tax to make up for it. pay for profits or other income. This nonprofit organization does not have to pay taxes on them, meaning you can also donate 20% more than if you sold it first and then donated it in the fiat.
Below is an example of a $ 250,000 donation of Bitcoin that was purchased for $ 10,000.
Electronic donation example
The best part yet? Not only can you reduce taxes, but you can also ensure you keep the same amount of cryptocurrencies in your portfolio. How? If you donated by credit card or otherwise, there is a chance for tax referees. Replace the way you usually donate with cryptocurrencies and you can actually donate and deduct 20% or more, then buy back the same amount of cryptocurrency later.
Boom. Get more donations, save more, and keep the same crypto balance.
Are there many nonprofits that accept cryptocurrency donations?
Yes, there are more and more on board. Another benefit of cryptocurrency donations is that it encourages more nonprofits to accept cryptocurrency, spurring adoption in the process.
Go ahead and Google Google donates Bitcoin, or donates cryptocurrency to find a crypto-friendly nonprofit. You might be surprised by the number you find and how easy it is. Here are a few examples of non-profit organizations that accept cryptocurrencies that you may recognize:
Save the children
There are no hungry children
Tropical forest fund
Pencil of promise
International Medical Corps
There are hundreds of people out there. The above people even allow anonymous contributions and can even automatically email you a tax receipt (you can use a separate email like Protonmail).
So next time your cryptocurrency moons want to donate $ 57,120 to the IRS or to your favorite purpose? The choice is yours.
The information provided here is for informational purposes only and should not be considered professional tax advice. If you have questions about taxes, contact a qualified tax expert.
The views, opinions and opinions expressed herein are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
This article was co-authored by Alex Wilson and Pat Duffy.
Alex Wilson is the co-founder of The Giving Block. The Alex Alex platform is a management consultant where he has worked with Fortune 500 companies to develop strategies around emerging technologies such as AI, IoT, blockchain and cryptocurrency. Now, he has turned his attention to the nonprofit world, where he equips nonprofits to accept Bitcoin and other cryptocurrency donations.
Pat Duffy is the co-founder of The Giving Block. Pat started as a federal consultant for pharmaceutical companies, focusing on working with nonprofits. Later, he moved into the nonprofit sector, focusing on operations and fundraising. Combining his non-profit experience and passion for cryptocurrency trading, Pat co-founded The Giving Block and is currently designing and implementing initiatives focused on improving non-profit results. Profit and acceptance of cryptocurrencies.
Website of Vietnam Union of Science and Technology Associations
License number: 169 / GP-TTĐT, dated October 31, 2012
Head of Editorial Department: DANG VU
The Vietnam Union system was founded with 15 members. Currently, that number has risen to 148, including 86 national industry associations and 63 local associations. In addition, in the system of the Vietnam Union, there are more than 500 scientific and technological research units established under Decree 81 (now Decree 08); over 200 newspapers, magazines, electronic newspapers, newsletters, specialties, electronic news sites.