December is the deadline to make charitable donations to reduce your tax lability for the year, and a growing number of people are donating in cryptocurrency. GRF’s Jennifer Galstad-Lee, CPA, J.D., and Patrick Crosby, CPA, MBA, have coauthored an article on important tax considerations for donating in crypto. The article is published in the December issue of The Tax Adviser.
The cryptocurrency market is volatile and the asset class is still maturing. Recent bankruptcies of exchanges like FTX and BlockFi will likely awaken the attention of regulators. All these factors present challenges for donors of crypto and their recipient charities.
The article, entitled “Tax considerations on charitable giving of cryptoassets,” outlines the major issues including potential limits on deductions, difficulties in determining fair market value, and reporting requirements for donors and recipient charities.
The full article appears in the December 2022 issue of The Tax Adviser, available online from the Association of International Certified Professional Accountants (AICPA).
For more tax guidance for the 2022 tax year, visit GRF’s 2022 Year-End Tax Planning Series.
About GRF CPAs & Advisors
Headquartered in the Washington, D.C. metropolitan region, GRF CPAs & Advisors (GRF) is a full-service professional services firm providing clients with accounting, tax, and advisory solutions. For more than 40 years, the firm has supported the financial and operational success of for-profit and tax-exempt organizations locally, nationally, and around the world.
The firm is a member of CPAmerica, Inc., one of the largest associations of CPA firms in the United States. Our membership guarantees clients access to the expertise and resources of more than 4,000 accounting and advisory professionals at 78 member firms throughout the country. CPAmerica is a member of Crowe Global, providing our firm with access to the eighth-largest accounting network in the world with over two hundred independent firms in more than 130 countries.