Why Bitcoin Donations Are So Tax-Smart
The price of bitcoin has skyrocketed, turning those who bought even just a small amount of the cryptocurrency over the years on a whim into millionaires. Those who want to cash in on their profits can always sell their bitcoin, but the tax consequences of an outright sale can put a big dent in your after-tax gains.
Those bitcoin owners with a more charitable bent have an opportunity to make generous donations while also giving themselves a valuable tax break. Thanks to the way that the IRS treats bitcoin for tax purposes, giving the cryptocurrency to charity can save bitcoin owners a ton of potential tax liability and also provide an equally valuable tax deduction to reduce their overall tax liability.
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Source: Fool.com
