The IRS requires individuals, partnerships, and corporations to file an IRS Form 8283 when the amount of their deduction for all non-cash gifts is more than $500. This includes contributions of non-cash assets such as cryptocurrencies and securities. If your crypto contribution was valued at over $5,000, you will need to obtain a qualified appraisal.
However, with Daffy, a Donor-Advised Fund (DAF), you can make these contributions with ease. Daffy is a great option for a DAF as it simplifies the process of making non-cash contributions. If your situation requires a Donee signature for a contribution valued at over $5,000, Daffy's support team is ready to assist you.
Moreover, Daffy ensures that you do not need to worry about capital gains taxes for any assets that you contributed and were sold. While donations to charities from a DAF do not qualify for a tax deduction, Daffy provides a platform for you to contribute to your favorite causes without the hassle of tax complications.
Whether you're contributing stock or crypto that exceeds $500 in value, Daffy makes it easy for you to file an 8283 Form with your federal income tax return. This form is supported by almost all tax-preparation software providers and is a simple addition for any certified tax professional.
Remember, the information provided here is for educational purposes only and should not be considered tax advice. Always consult with a certified tax professional to assess your specific tax situation.
Join the Daffy community today and make giving a habit. Daffy is the Donor Advised Fund for You™.