The IRS 8283 Form is a document that individuals, partnerships, and corporations use 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 with a 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 a great option for a Donor-Advised Fund (DAF). Daffy is equipped to handle non-cash contributions, including cryptocurrencies. If your crypto contribution was valued at over $5,000 and your situation requires a Donee signature, Daffy's support team is ready to assist you.
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 stocks or crypto, if the value exceeded $500 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 tax-preparation software providers and is a simple addition for any certified tax professional.
Remember, the information contained in this blog post 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.
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.