IRS sets new rules on crypto charity deductions, details holding period, appraisal limits

The Internal Revenue Service treats cryptocurrency donations as property rather than currency, which means a crypto gift to charity is generally considered a noncash contribution. Whether a donor qualifies for a federal tax deduction and the amount allowed depend on several factors, including the type of recipient, how long the asset has been held, valuation methods, and the relevant tax documentation. To be eligible for a tax deduction in the US, crypto donations must be given to a qualified charitable organization. Contributions made directly to individuals, regardless of need, are not recognized as deductible charitable donations under IRS rules. For digital assets held for more than one year, donors are typically allowed to deduct the fair market value as of the date of the donation.

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