Here at Camuso CPA, we offer CPA tax help for cryptocurrencies in Charlotte. Navigating the waters of the tax regulations for this new monetary medium can be tough. But, it is still well worth it to invest in this exciting new opportunity. In fact, there are so many people making money off of cryptocurrencies that Fidelity Charitable has reported that cryptocurrencies are their fastest growing charitable donation. We want to dive into the details of this phenomenon here a little further.
CRYPTO AND FIDELITY CHARITABLE
On February 14, Fidelity Charitable announced that it received $69 million from cryptocurrencies in the year 2017. This made it the fastest growing type of charitable donation given to the firm. Most of these donations were made with bitcoin and ether, and came from 169 separate donors. This is a full tenfold increase in cryptocurrency donations since the firm began accepting bitcoin back in 2015, putting cryptos at a 140 percent faster growth rate than other donation options like real estate and shares of LLCs.
Actually, cryptocurrencies have been using donations as a key crux to the case for their adoption since their inception. Back in 2013, BitGive began to help non profits become able to accept cryptocurrency donations, attracting a handful of big names to give the idea a trial. The very next year, Coinbase began its own service initiative to support non profits.
While Fidelity Charitable is seeing faster growth with cryptocurrency donations than other types of donations, it is an early adopter paving the way. It started accepting cryptos in 2015, but didn’t see much traction in the funding mechanism until 2017, after the firm began a huge marketing campaign to inform people cryptocurrency donation options. By November of 2017, Fidelity Charitable had gone from $11 million in donations to $22 million over a short time span, possibly coinciding with a tweet by bitcoin developer Gavin Anderson mentioning that he himself used the platform. Donations took off from there, and by the following month, the firm had seen an additional $36 million in donations.
There are benefits that cryptocurrency investors can reap through tax incentives regarding charitable cryptocurrency donations. That is because Fidelity Charitable offers an “investor managed fund”, allowing cyrpto investors to donate assets including cryptocurrency without needing to pay capital gains taxes. Because of this, the firm typically sees an increase in donations the higher the tax bracket that a donor is in. And while cryptos still haven’t taken up the lion’s share of the market when it comes to traditional donation types, they are set up to make a major impact on charitable giving in the future.
Are you looking for a CPA in Charlotte for cryptocurrency tax help? Give Camuso CPA a call today. We also offer a host of other tax services for your benefit. For more information on how our services can help you, please do not hesitate to give us a call at your earliest convenience. One of our friendly and knowledgeable representatives will be happy to answer any questions that you may have.