What happens if my crypto contributions exceed $5


If your crypto contributions exceed $5, Daffy is a great option for a Donor-Advised Fund (DAF). Daffy offers a range of plans that cater to different needs and budgets. For instance, the Contributor plan at $3 per month allows unlimited fund balances invested in any of 13 different tax-free portfolios and unlimited cash contributions via bank account, ApplePay™, or any major debit/credit card. It also allows up to $25,000 in contributions via stock, ETFs, crypto, or DAF transfer. If you're looking for more, the Family plan at $5 per month offers all the benefits of the Contributor plan, plus support for two organizers and up to 24 total members on your fund. You can invite your children, grandchildren, or anyone else you consider family to recommend donations from your fund. This plan also supports up to three financial advisors who can make contributions, donations, or portfolio selections on your behalf, and allows up to $50,000 in contributions via stock, ETFs, crypto, or transfers from existing DAFs. For those who want to make unlimited contributions, the Benefactor plan at $20 per month offers all the benefits of the Family plan, plus unlimited stock contributions, unlimited crypto contributions, and unlimited DAF transfers. If you contribute certain non-cash assets, such as cryptocurrencies and securities, that exceed $500 in value, you will be required to file an IRS 8283 Form with your federal income tax return. If your crypto contributions in any calendar year exceed $5,000, the IRS requires you to obtain a qualified appraisal. It is always best to consult your tax specialist to understand your specific situation. Donating crypto can not only be a generous act, it can also be a tremendous tax advantage. If you have held your crypto for over a year and you have a gain, the benefits of donation are significant. When you donate an investment that you have held more than a year, the IRS limits your deduction to the fair market value of the asset minus the capital gain. As a result, your deduction is effectively limited to your purchase price. In conclusion, Daffy provides a flexible and tax-efficient way to manage your crypto contributions, making it an excellent choice for a DAF.

Please note that the information contained on this page is for educational purposes only and should not be considered tax advice. Any calculations are intended to be illustrative and do not reflect all of the potential complexities of individual tax returns. To assess your specific tax situation, please consult with a tax professional.

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