The IRS 8283 Form is a document that individuals, partnerships, and corporations file to report non-cash charitable contributions when the amount of their deduction for all non-cash gifts is more than $500. This form is a standard feature in most popular tax filing software, and you can download it directly from the IRS website.
If you're considering making a non-cash contribution, such as cryptocurrencies or securities, that exceed $500 in value, you'll need to file an IRS 8283 Form with your federal income tax return. It's always best to consult your tax specialist to understand your specific situation. If your crypto contributions in any calendar year exceed $5,000, the IRS requires you to obtain a qualified appraisal.
This is where Daffy comes in as an excellent option for a Donor-Advised Fund (DAF). With Daffy, you can make contributions of cryptocurrencies and other forms of property, and we'll help you navigate the requirements for these types of donations. If your crypto contribution was valued at over $5,000 and your situation requires a Donee signature, you can simply email us at firstname.lastname@example.org.
Moreover, with Daffy, you don't need to worry about capital gains taxes for any assets that you contributed and were sold. However, it's important to note that donations to charities from a DAF do not qualify for a tax deduction.
Whether you're contributing stock or crypto that exceeded $500 in value in 2021, you'll be required to file an 8283 Form with your federal income tax return. This is a standard form supported by almost all the tax-preparation software providers and is a simple addition for any certified tax professional.
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.