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  • Cryptocurrency Tax Guide for US Individuals
    • Virtual Currency & Cryptocurrency
    • Who are Recap?
  • CRYPTOCURRENCY TAX
    • Do I Need to Pay Tax on my Crypto?
    • Which Taxes Apply?
      • Capital Gains Tax (CGT)
      • Income Tax
      • Non-Taxable Transactions
    • How Much Tax Will I Pay?
    • Capital Gains Tax
      • Calculating the Capital Gains and Losses
      • Cost Basis Methods
      • Disposal proceeds
        • Non Taxable Events
        • Taxable Events
        • Donating cryptocurrency to a charitable organization
        • Gifting cryptocurrency to another person
    • Income Tax
      • Receiving cryptocurrency from mining
      • Receiving cryptocurrency rewards
      • Forks
      • Airdrops
      • Tax on Tokenswaps and Mainnetswaps
    • Deductibles and Reducing Capital Gains
  • TRANSACTION TYPES
    • 💷Selling Crypto for Fiat
    • 🛍️Purchases using Crypto
    • 🔄Exchanging one crypto for a different crypto
    • 🎗️Donations to Qualified Charities
    • 🎁Gifts
    • 🎈Airdrops
    • 🤝Staking
    • 💸Transfers
    • 🍴Forks
    • ⛏️Mining
    • 👛Employment income
    • 🚨Lost & Stolen Crypto
    • 💧Liquidity Pools
    • 🔮Cryptoasset derivatives (CFDs, Futures and Margin Trading)
    • 💼Crypto Loans
    • 💎Lending Rewards
    • 🪞Reflections Rewards
    • 👥Referral Income
    • 💳Cashback
    • 🎨NFTs (Non Fungible Tokens)
    • 🎮Play-to-earn gaming NFTs
  • Record Keeping
  • Reporting Income and Gains to the IRS and Paying the Tax
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  1. TRANSACTION TYPES

Donations to Qualified Charities

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Last updated 3 years ago

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If you donate cryptocurrency directly to a qualified charitable organization (described under Section 170(c) of the IRS’ tax code), then you can potentially avoid capital gains tax liability and claim a charitable deduction on your tax return for the fair market value of your cryptocurrency at the date of donation.[1]

The IRS requires noncash donations over $500 in value to be reported on Form 8283 of your tax return. While this form does not require you to provide receipts or other records of your donations with this form, it’s important to maintain records in case the IRS requests evidence of your donations

The amount that can be deducted depends on how long you held the crypto for: a) If you owned cryptocurrency for more than 1 year at the time of donating it, your charitable deduction is equal to the FMV of the virtual currency at the time of the donation.

b) If you owned cryptocurrency for 1 year or less at the time of donating it, your charitable deduction is equal to the lesser of (1): your basis in the virtual currency, or (2): the virtual currency’s FMV at the time of the contribution.[2]

[1] I.R.S. Frequently Asked Questions on Virtual Currency Transactions. (Questions 34). https://www.irs.gov/individuals/international-taxpayers/frequently-asked-questions-on-virtual-currency-transactions

[2] I.R.S. Frequently Asked Questions on Virtual Currency Transactions. (Question 35). https://www.irs.gov/individuals/international-taxpayers/frequently-asked-questions-on-virtual-currency-transactions

Recap has been designed to work out the capital gains impact of donating crypto to charity.

  1. Simply connect your exchange accounts or wallets through our automated integrations or enter your data manually via the user interface or CSV file.

  2. Recap treats gifts to charity as a no gain/no loss disposal

  3. See the tax impact of every gift (example below) in the tax tab or download a PDF tax report

Donations to Charity in

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Donation to charity in Recap