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I suspect some of the OG crypto millionaires like to give away small amounts of their fortune to charities The Catholic Foundation, which is part of the Archdi

I suspect some of the OG crypto millionaires like to give away small amounts of their fortune to charities The Catholic Foundation, which is part of the Archdiocese of Denver takes crypto, and has a whole page about the tax benefits: https://thecatholicfoundation.com/crypto/ https://thecatholicfoundation.com/crypto/ "Donating cryptocurrency is a non-taxable event. Donors do not owe capital gains tax on the appreciated crypto that is donated and can typically deduct the fair market value of the donation on their taxes."

tgsovlerkhgsel 3y ago
Just to be clear, this does not mean donating crypto leaves you with more money than keeping/selling it: If you have $1000 worth of crypto that you bought for $100 and donate it, you have $0 worth of crypto (because you gave it away) and e.g. $400 (assuming a 40% marginal tax rate) worth of tax savings. If you sell the crypto instead and keep the money, you pay e.g. 33% (20% federal + 13% California) taxes on it, and you have $0 worth of crypto (because you sold it) and $670 worth of cash after taxes.
- gene91 3y ago
  Nitpicking the numbers. If you're assuming 13% California, that's $1M annual income. You should assume 37% marginal federal tax rate for deductibles, and assume 23.8% federal tax rate (due to NIIT) for long-term capital gains. Therefore, donation generates $497 of value (37%+13.3%=50.3%) whereas selling and keeping generates $632 of value (23.8%+13%=37.1%). Therefore, the difference ($135) is quite a bit smaller than your math ($270).
  - londons_explore 3y ago
    Numbers like this explain why charities are such big business. If I earn just 13 cents on the dollar of benefits from a charity (for example in freebie gala meals or networking events), then even selfish rich me would do well to give to charity.

3 ms·

I suspect some of the OG crypto millionaires like to give away small amounts of their fortune to charities The Catholic Foundation, which is part of the Archdi

by reaperducer 3y ago

tgsovlerkhgsel 3y ago
Just to be clear, this does not mean donating crypto leaves you with more money than keeping/selling it: If you have $1000 worth of crypto that you bought for $100 and donate it, you have $0 worth of crypto (because you gave it away) and e.g. $400 (assuming a 40% marginal tax rate) worth of tax savings. If you sell the crypto instead and keep the money, you pay e.g. 33% (20% federal + 13% California) taxes on it, and you have $0 worth of crypto (because you sold it) and $670 worth of cash after taxes.
- gene91 3y ago
  Nitpicking the numbers. If you're assuming 13% California, that's $1M annual income. You should assume 37% marginal federal tax rate for deductibles, and assume 23.8% federal tax rate (due to NIIT) for long-term capital gains. Therefore, donation generates $497 of value (37%+13.3%=50.3%) whereas selling and keeping generates $632 of value (23.8%+13%=37.1%). Therefore, the difference ($135) is quite a bit smaller than your math ($270).
  - londons_explore 3y ago
    Numbers like this explain why charities are such big business. If I earn just 13 cents on the dollar of benefits from a charity (for example in freebie gala meals or networking events), then even selfish rich me would do well to give to charity.