Cryptocurrency And digital assets

The IRS treats crypto and digital assets as property, not currency. 

  • Donations are noncash property gifts. 
  • FMV must be documented at the time of the gift. 
  • Substantiation mirrors other property rules: 
    • Over $500 → Form 8283
    • Over $5,000 → appraisal required 
  • Keep records of both FMV and cost basis. 

What donors need to know: 

If you donate crypto, treat it like giving property. Keep records of when you bought it, what you paid, and the value on the donation date. Most donations over $500 require Form 8283, and donations over $5,000 require an appraisal.