What is a Qualified Appraisal?

Understanding IRS requirements for cryptocurrency donation appraisals and why they matter for your tax filing.

The Basics: Why Appraisals Matter

When you donate cryptocurrency to a qualified charity, you may be eligible to claim a charitable deduction on your tax return. For donations of property (which includes cryptocurrency) above certain thresholds, the IRS requires specific documentation to support your claimed deduction.

A qualified appraisal is an independent assessment of the fair market value of your donated property. It must be conducted by a qualified appraiser and meet specific requirements outlined in IRS regulations.

Important Note

Tax rules are complex and subject to change. This page provides general information for educational purposes only. Always consult with a qualified tax professional or CPA regarding your specific situation and the requirements that apply to you.

When You Generally Need a Qualified Appraisal

For non-cash charitable contributions (which includes cryptocurrency), the IRS generally requires:

1

Donations Over $500

You must complete IRS Form 8283, Section A, and maintain records of the donation including how you acquired the asset and its cost basis.

2

Donations Over $5,000

You must obtain a qualified appraisal and complete Form 8283, Section B. The qualified appraiser must sign the form.

3

Donations Over $500,000

You must attach the complete qualified appraisal to your tax return.

What Makes an Appraisal “Qualified”?

According to IRS guidelines, a qualified appraisal must meet several requirements:

  • Conducted by a qualified appraiser (with relevant education and experience)
  • Made not earlier than 60 days before the donation and not later than the due date of the return
  • Includes specific information about the property, appraiser, and valuation method
  • States the fair market value of the donated property on the date of contribution
  • Includes the method of valuation and the basis for the valuation
  • Contains the appraiser's declaration that they are qualified and independent

Cryptocurrency-Specific Considerations

Cryptocurrency presents unique valuation challenges:

Volatility

Cryptocurrency prices can change significantly in minutes. The appraisal must reflect the value at the exact time of donation.

Multiple Exchanges

Prices can vary across different exchanges. A proper appraisal considers pricing from major, reputable sources.

Form 8283 Explained

IRS Form 8283 is the form used to report noncash charitable contributions. It has two sections:

Section A: Noncash Contributions Under $5,000

For donated property valued between $500 and $5,000. Requires basic information about the donation but does not require a qualified appraisal.

Section B: Noncash Contributions Over $5,000

For property valued over $5,000 (including most crypto donations requiring an appraisal). Requires a qualified appraisal and the appraiser must sign the form.

Our Appraisal Process

Here's how we help you get the documentation you need:

  1. 1

    Submit Your Information

    Provide details about your donation including the cryptocurrency type, amount, and exact date/time of the donation.

  2. 2

    We Analyze the Market

    Our team gathers pricing data from major exchanges and determines the fair market value using our established methodology.

  3. 3

    Receive Your Report

    You receive a comprehensive PDF appraisal report with all required documentation, including support for Form 8283.

Important Disclaimers

This is not tax or legal advice. The information on this page is provided for general educational purposes only. Tax laws are complex, change frequently, and may vary based on your specific circumstances.

Consult a qualified professional. Always work with a qualified tax professional, CPA, or tax attorney regarding your specific situation, filing requirements, and the deductibility of your charitable contributions.

Our role is valuation only. CryptoAppraisal Pro provides independent appraisals of cryptocurrency value. We do not advise on tax strategy, filing requirements, or whether your donation qualifies for specific tax treatment.

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