If you own Bitcoin or another digital currency, chances are it is worth a lot more than what you paid for it. Bitcoin is one of the best-performing assets over the past five to 10 years. Many investors have a very low-cost basis and should evaluate the tax implications before cashing in.
One impactful option that can save you on taxes: Using cryptocurrency to support our mission.
Your cryptocurrency gift to the University of Colorado qualifies for an income tax deduction for its fair market value, up to 30% of your adjusted gross income (AGI) with a five-year carryover. If you have held your cryptocurrency for more than a year, you also avoid the capital gains tax you would have paid if you sold it.
How It Works
Step 1: Ask if the charitable organization accepts gifts of cryptocurrency (ours does). Alternatively, if you have a donor advised fund, confirm with them if you are able to transfer cryptocurrency to your account. Then you will be able to recommend a grant to charitable organizations.
Step 2: Transfer your cryptocurrency. Work with the charitable organization or your donor advised fund provider to make the transfer via their online wallet tool.
This gift is right for you if:
- You would like to receive a federal income tax deduction in the year you make your gift.
- You would like to avoid capital gains tax.
- You would like to make an impact on our mission.
If you are interested in giving Bitcoin or other cryptocurrency please click on the link: giving.cu.edu/crypto. If you have questions about giving Bitcoin or other cryptocurrency, please contact the Office of Gift Planning at 303-541-1229 or firstname.lastname@example.org.