The FAQ below is provided for informational purposes only and does not constitute tax advice from CI. Donors should contact their tax professionals.
What more do I (donor) need to do for a deduction if my Bitcoin gift is more than $500 but less than $5,000 in USD?
IRS Form 8283 may be required for documenting receipt by CI of certain noncash contributions. This form must be filed by the donor when non-cash contributions are made in excess of $500. Failure to file can cause the IRS to assess penalties and potentially disallow a charitable contribution deduction for you, the donor.
What more do I (donor) need to do for a deduction of my Bitcoin gift if it is greater than $5,000 in USD?
If the claimed value of your Bitcoin donation is greater than $5,000, then you will be required to obtain an appraisal supporting that value, in addition to completing theIRS Form 8283.
What is IRS Form 8283?
Form 8283 is a form that you, the donor, must complete when making donations of Bitcoin valued over $500. In some instances, CI may also have to sign your form. When CI receives Bitcoin valued over $5,000, you must complete Part IV of Form 8283 to claim the deduction on an income tax return and obtain CI’s signature. By signing the form, CI is simply acknowledging that the donation was received. We are not able to attest to the value of the donation being claimed on the form.
What is the appraisal requirement?
To qualify for a deduction of a Bitcoin donation in excess of $5,000, you are required to obtain a qualified appraisal. A qualified appraisal must meet the IRS regulations for proper valuation of fair market value and must be conducted by a “qualified appraiser.” Your tax professional can provide you with more information on a qualified appraisal.