If you own Bitcoin or another digital currency, chances are it is worth a lot more than what you paid for it. Bitcoin is one of the best-performing assets over the past five to 10 years. Many investors have a very low-cost basis and should evaluate the tax implications before cashing in.
One impactful option that can save you on taxes: Using cryptocurrency to support our mission.
Your cryptocurrency gift to Institute for Shipboard Education qualifies for an income tax deduction for its fair market value, up to 30% of your adjusted gross income (AGI) with a five-year carryover. If you have held your cryptocurrency for more than a year, you also avoid the capital gains tax you would have paid if you sold it.
Step 1: Ask if the charitable organization accepts gifts of cryptocurrency (ours does). Alternatively, if you have a donor advised fund, confirm with them if you are able to transfer cryptocurrency to your account. Then you will be able to recommend a grant to charitable organizations.
Step 2: Transfer your cryptocurrency. Work with the charitable organization or your donor advised fund provider to make the transfer via their online wallet tool.
If you are interested in giving Bitcoin or other cryptocurrency to Institute for Shipboard Education, please contact Susan Sigman at 970.293.3293 or firstname.lastname@example.org. We are happy to walk you through the process.
Information contained herein was accurate at the time of posting. The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in any examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results. California residents: Annuities are subject to regulation by the State of California. Payments under such agreements, however, are not protected or otherwise guaranteed by any government agency or the California Life and Health Insurance Guarantee Association. Oklahoma residents: A charitable gift annuity is not regulated by the Oklahoma Insurance Department and is not protected by a guaranty association affiliated with the Oklahoma Insurance Department. South Dakota residents: Charitable gift annuities are not regulated by and are not under the jurisdiction of the South Dakota Division of Insurance.