DONATE YOUR BITCOIN FOR A TAX BENEFIT???

dewontrades (34)in #bitcoin • 7 years ago (edited)

What's up, World.

Yesterday, I was digging up some things off the web to create a content video for my youtube channel. After 10 minutes of searching, I found some cool information from a cointelegraph article titled, "Tax Free Way To Transfer Bitcoin and Other Crypto: Expert Take". With a title that word-rich, I had to check it out. In just three concise paragraphs, there was some good insight about how your cryptocurrencies. particularly Bitcoin, can be used for a tax advantage.

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Before I explain, understand I am not your tax advisor and you consult with your accountant behind my post ;)

Now that is out of the way, let me give you my understanding of the tax advantage in the article. Donations and charity are tax deductibles. Your contributions to them are considered tax right-offs, which can lower your taxable income-essentially pay less taxes. If you already know this, let it fly.

The article goes on to mention that if you were to donate your Bitcoin, you would benefit from its' price appreciation!
Here's an example. Say you bought Bitcoin in Januray 2017 for $900 and now it is priced at just about $11,000. Your Bitcoin contribution would be an $11,000 write-off for just the cost of $900. As long as it saves you in taxes more than your $900 Bitcoin purchase, it would be WIN!