Simplifying Tax Reporting for Cryptos
Engiven, the enterprise cryptocurrency donation platform, has been on a mission to transform how charitable donations are made in the digital age. In an effort to make tax reporting a breeze for both donors and nonprofits, Engiven recently announced the launch of an automated tax form and appraisal service tailored specifically for cryptocurrency donations. It’s like having a personal tax assistant – but way cooler and much less awkward!
The Nitty-Gritty of IRS Forms
When it comes to crypto donations, there’s a bit of paperwork involved. Nonprofits must file IRS Form 8282 when crypto donations exceed $500 and are converted into U.S. dollars. Meanwhile, the generous donors must fill out Form 8283 with their tax return if their donations hit that same $500 mark. Thankfully, Engiven has taken a giant leap forward by streamlining this entire process.
With the Engiven platform, donation data gets auto-magically entered into the correct IRS forms, and the completed forms are sent off to the respective nonprofits for a quick signature. This means less time at the office and more time getting back to what really matters – saving the world, one crypto donation at a time!
Sweetening the Deal with Free Appraisals
For those looking to donate a whopping $5,000 or more in crypto, Engiven has some alluring news: they’re offering free appraisals! This means if you chip in a sizable donation, you won’t just be changing lives but also getting a costly service for free.
However, it’s worth noting that, according to Tony Oommen of Fidelity Charitable, qualified crypto appraisals can range from $100 to $600. So, it’s essentially like getting the most expensive meal on the menu and having the restaurant foot the bill. Score!
Words from the Top
In the midst of tax season, Engiven’s CEO, James Lawrence, highlighted the ultimate goal of these new features: “With tax season upon us, we want to ensure that donors and nonprofits on the Engiven platform have the required, pre-filled, tax forms needed to comply with IRS regulations for cryptocurrency donations.” Talk about a win-win!
The Bigger Picture: Engiven’s Impact
Founded back in 2018, Engiven is now one of the largest crypto donation networks in the U.S., supporting over 400 nonprofit organizations, including the iconic Salvation Army. Recently, they partnered with U.S. Figure Skating, the national governing body for figure skating, allowing organizations to collect donations in cryptocurrencies like Bitcoin.
As the April 18 tax deadline looms, Engiven’s timely tools arrive just in time. According to TaxBit, those without specialized automated tax services could be shelling out thousands for crypto tax compliance. Thankfully, with Engiven, the complexities of crypto donations are being untangled, making it easier to do good.
