Posted 1 year ago | by Ben Armstrong

Use Cryptos for Taxes and Support Charity

If you are sitting on some big gains in the form of Bitcoins, or other cryptos, and you have to pay taxes to the US government, you may want to consider donating them directly to a charity.

Here is the deal. If you are holding some tokens that you bought at much lower prices, and you have to pay any kind of tax to the IRS, making a crypto donation to a non-profit could mean dropping your tax bill to zero.

While you should talk to your accountant, it is likely possible to protect most of your income from taxes by donating cryptos to a non-profit. In a sense, you would be monetizing your gains in a way that is far more tax-efficient than selling them or even donating the proceeds of a sale.

Cryptos Can Also be Used Day-to-Day – But be Careful

There are also ways to use your cryptos directly as cash, but depending on where you live, this may be a very tricky way to use your token holdings.

In the USA, tokens are being treated as securities, much like a stock, or commodity. When you sell your tokens into fiat currency, you will have to pay capital gains on any profits. For day-to-day spending, this can become very complex.

It may be better to donate the tokens directly and use the tax-free income to buy the things you need. However, there are many places that have simpler tax laws, and spending cryptos as cash is far easier.

If you want to use tokens directly, Crypto.com offers a range of MCO Visa cards that allow you to spend crypto as cash. It is backed by the Visa network, which means it can be used almost anywhere.

Anyone who signs up for the Crypto.com MCO Visa card by clicking here will get a $50 rebate, and help Bitboy at the same time!

Many Non-Profits Accept Cryptos

If you are living in the USA and would like to make a tax-efficient donation in cryptocurrency, there are some great options for you.

These non-profits accept tokens directly:

  • The Water Project
  • International Medical Corps
  • Save the Children
  • Pencils of Promise
  • WaterAid
  • No Kid Hungry
  • Rainforest Foundation

Before you decide to donate a large amount of crypto for tax purposes, be sure to talk to an accountant who is crypto savvy. Make sure you get the most out of your tokens and don't let the IRS take more of your money than they should.

The government can print money, you have to earn it.

Articles on Bitboy may contain affiliate links that help us to remain profitable. It might come as a surprise, but all these great articles aren't cheap to produce. If you don't mind helping us out, please click on the links!

About Ben Armstrong

ef4f73e9ddeb61becab57469962fa946?s=90&d=blank&r=g Use Cryptos for Taxes and Support CharityBen Armstrong is a YouTuber, podcaster, crypto enthusiast, & creator of BitBoyCrypto.com. Better known as BitBoy Crypto, he works hard to educate and inform the crypto community.

Ben has been involved with the world of cryptocurrency since 2012 when he first invested in Bitcoin. He used Charlie Shrem's BitInstant & lost Bitcoin in the Mt. Gox hack.

In 2018, Ben decided to go "full-time crypto" and focus all of his time and energy into expanding the reach of crypto.

If you have any questions or comments please feel free to email him at BitBoy@BitBoyCrypto.com or contact him on Twitter @BitBoy_Crypto.