How do I enter crypto donations?

[j1232123]

How do I enter cryptocurrency donations into TurboTax.

[LoganathanB]

You enter them in schedule A under Charity.

The cryptocurrency is treated as property. You must first determine the property's fair market value to figure out the amount of a charitable contribution deduction. Fair market value is the price that a property would sell for on the open market.

For cryptocurrencies that are traded on a public exchange, the fair market value will be equal to the spot price at the time of the donation.

Click on the link for more information

Cryptocurrencies

[j1232123]

Yes, but how do I enter that in TurboTax? When I click on donations there are only the four options:

• Items
• Money
• Stock
• Mileage and travel expenses

Which ones of these will end up on the right form? Stock gives me the option to enter cost basis and purchase info which is helpful when determining if the donation qualifies for short or long term value and "items" has multiple options for property:

• Household items
• Car, boat or airplane
• Collectibles
• Business equipment
• Business inventory
• Art - not self-created
• Art - self-created
• Publicly traded stock
• Non-Publicly traded stock
• Securities (not stock)
• Intellectual property
• Real property - not conservation property
• Other personal property
• Other intangible property

Which option am I supposed to select?

[JohnB5677]

As LoganathanB stated, it is considered property.

So you first select Items,

and then select  Other personal property

You would then enter the value in USD at the time of the gift.

[j1232123]

Thanks. This is unclear from the original reply since as stated there are multiple items which are labeled "property." There's no need to be condescending. Also for other people who find this answer, I'm not sure it's entirely true that you just enter the fair market value. All other information I've seen indicates that there is a difference in what you are allowed to claim depending on if you donate long-term and short-term holdings but of course as with everything else, DYOR.

[DianeW777]

You are correct. As our tax expert @LoganathanB indicated, you must determine fair market value (FMV) to figure out your allowed donation. The amount of the donation depends on whether it was held short term or long term and whether it has increased or decreased in value (See IRS Publication 526).

Giving Property That Has Increased in Value

If you contribute property with a fair market value that is more than your cost basis in it, you may have to reduce the fair market value by the amount of appreciation (increase in value) when you figure your deduction. Your basis in property is generally what you paid for it. If you need more information about basis, see IRS Publication 551.

Different rules apply to figuring your deduction, depending on whether the property is:

• Ordinary income property, or (held one year or less)

• Capital gain property (held more than one year)

Giving Property That Has Decreased in Value

If you contribute property with a fair market value that is less than your basis in it, your deduction is limited to its fair market value. You can't claim a deduction for the difference between the property's basis and its fair market value.  Your basis in property is generally what you paid for it. 

• Received as a gift or inheritance;

• Used in a trade, business, or activity conducted for profit; or

• Claimed a casualty loss deduction for.

How do I enter my donations in TurboTax?

• The Form 8283 is completed automatically by TurboTax if the combined value of all the property you donate is more than $500.  

  All you have to do is enter all of your charitable contributions and this form will be included in your tax return, if required.