Big news from the IRS that we’ve been waiting on for a while — how will charitable donations of virtual currency be treated for tax purposes? Forbes summarizes things for us:

The Internal Revenue Service (IRS) has issued guidance for donors (and charities) on the FAQ page of its website. The IRS addressed whether gifting virtual currency to a charity could result in income, gain, or loss. The IRS confirmed that if you donate virtual currency to a charitable organization, you will not recognize income, gain, or loss from the donation. That’s the same result as giving stock or other appreciated assets, which are also characterized as capital assets.

The IRS also explained how to calculate the value of a gift of virtual currency to a charity; addressed the charity’s responsibilities for gifts of virtual currency; and reviewed charity reporting requirements to the IRS.

Also a reminder that back in 2014, the IRS clarified that virtual currency is treated as a capital asset, provided it is convertible into cash.

More here: IRS Confirms Tax Treatment Of Virtual Currency Charitable Donations – Forbes