In the US, if you donate cryptocurrency to an IRS-recognized tax-exempt charity (e.g., 501(c)(3) organization), you are not required to pay capital gains on the transaction and can deduct the donation based on the fair market value on the donation date.
Additionally, if you’ve held the crypto for over a year, you can deduct the fair market value on the donation date. If you held the crypto for one year or less, the deduction is limited to the lesser of the fair market value on the donation date or the cost basis. This allows you to donate appreciated crypto without triggering capital gains taxes.
You can change the transaction category to Donation in CoinTracker from the Transactions page.
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