Bitcoin isn’t for everyone. But if you invested in Bitcoin or other virtual currency prior to Jan. 1, 2021, it’s likely worth a lot more than you paid for it.
Despite recent market volatility, Bitcoin is still one of the best-performing assets over the past five to 10 years. If you own some, you may have a very low cost basis and you should evaluate the tax implications before cashing in.
One impactful option that can save you on taxes: Using cryptocurrency to support our mission.
Your cryptocurrency gift to the Catholic Diocese of Marquette qualifies for an income tax deduction for its fair market value, up to 30% of your adjusted gross income (AGI) with a five-year carryover. If you have held your cryptocurrency for more than a year, you also avoid the capital gains tax you would have paid if you sold it.
Step 1: Confirm with the nonprofit or your donor advised fund. Check with your desired destination that you are able to transfer cryptocurrency to your account.
Step 2: Transfer your cryptocurrency. Work with the charitable organization or your donor advised fund provider to make the transfer via their online wallet tool.
If you are interested in giving Bitcoin or other cryptocurrency to the Catholic Diocese of Marquette, please contact Scott Fenley at (906) 227-9108 or sfenley@dioceseofmarquette.org. We are happy to walk you through the process.
Information contained herein was accurate at the time of posting. The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in any examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results. California residents: Annuities are subject to regulation by the State of California. Payments under such agreements, however, are not protected or otherwise guaranteed by any government agency or the California Life and Health Insurance Guarantee Association. Oklahoma residents: A charitable gift annuity is not regulated by the Oklahoma Insurance Department and is not protected by a guaranty association affiliated with the Oklahoma Insurance Department. South Dakota residents: Charitable gift annuities are not regulated by and are not under the jurisdiction of the South Dakota Division of Insurance.