Disclaimer: this is not legal or financial advice.*
If you hold crypto, this is a great time to make a donation to Foregen!
When you donate cryptocurrency to a qualified charitable organization like Foregen, you will not recognize income, gain, or loss from the donation. In fact, your crypto donations are tax deductible! This is because Foregen is registered under the Internal Revenue Code Section 170(c)) with the IRS as a “qualified charitable organization”. Therefore, we are recognized as a qualified charitable organization.
Your charitable contribution deduction is generally equal to the fair market value of the cryptocurrency at the time of the donation, if you have held the cryptocurrency for more than one year. If you have held the cryptocurrency for one year or less at the time of the donation, your deduction is the lesser of your price basis in the crypto currency or the crypto currency’s fair market value at the time of the contribution.
If you are claiming a deduction of more than $5,000, you must submit the Form 8283, so that we may acknowledge receipt on your behalf. This form allows you to substantiate the noncash charitable contribution. This is a process required by the IRS, and once our signature is provided, the form is complete.
You bought 1 ETH at $200 on January 1, 2019. You then donate the 1 ETH to Foregen on October 19, 2021. A good way to calculate Fair Market Value (FMV) is to average the highest and lowest prices on the day of donation. The ETH price was at $3900 (highest) and $3600 (Lowest), so you can use an average price of $3750 for FMV on October 19,2021.
That means you can deduct $3750 from your Adjusted Gross Income (AGI) if you itemize in the tax form 1040 schedule A.
In this scenario, the appreciation of the Crypto currencies does not have to be recognized by the donor. So it’s a great win-win for you, Foregen, and our critical mission to provider restorative, regenerative tissue solutions to affected men worldwide.
*Foregen does not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.