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Why Donating Bitcoin Actually Matters (And How the Tax Code Rewards It)bitcoinwell.com/blog/donate-bitcoin-tax-benefits
100 sats \ 3 comments \ @0xbitcoiner 30 Dec bitcoin
Most people think "philanthropy" is something billionaires do between yacht parties and TED Talks.

But giving to causes you actually believe in isn't reserved for the ultra-wealthy. Anyone can donate (whether it's $50 or 5 whole Bitcoin) and in many countries, the tax code actually rewards you for doing it.

And today, there's a particularly powerful way to give: donating directly to Bitcoin-focused charities.

...read more at bitcoinwell.com

~Politics_And_Law ~econ

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54 sats \ 0 replies \ @DarthCoin 30 Dec

You have to be a real idiot ro donate BTC and declare it to IRS for a write-off...
FUCKING STATISTS

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44 sats \ 0 replies \ @freetx 30 Dec

Donating in-kind is a good thing, but it doesn't cover the full story.

In-kind donations only give you 30% write-off, whereas cash donations give you 60% write-off.

This is a clever trick by the IRS to basically insert themselves in the donation chain. For example

In Kind

  1. You donate $10K in BTC to charity.
  2. You get ~$3K write-off
  3. Charity gets full $10K

Sell / Pay / Donate

  1. You sell $10K, and incur ~$1.5K in taxes
  2. You pay 1.5K in taxes, and donate $8.5K remainder
  3. You get ~$5K write off (ie. 60%)
  4. Charity gets 8.5K / gov gets their cut.

In most cases Sell / Pay / Donate wins. Also not mentioned in article is "donating bitcoin" requires a qualified appraisal of the amount donated, which will add a few hundred dollars to the process.

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0 sats \ 0 replies \ @winteryeti 20h

Donating is really about steering the money you're going to lose anyways to a cause you like versus the government's wallet. While it's not dollar for dollar, the deduction amount reduces what you pay and instead it goes to something you want to see happen with it. Either way you're going to lose your tax money. With donating you get to decide who uses some of it.

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