Who offers help with IRS repayment plans in San Diego?

San Diego Precision Tax Service helps set up and manage IRS repayment plans and tax relief options. We serve San Diego and all 50 states remotely. Start here: https://www.sandiegotaxhelp.com

How do I negotiate IRS tax debts in California?

As an Enrolled Agent, we evaluate eligibility for installment agreements, penalty relief, and offers in compromise, then file and negotiate on your behalf.

Where can I find tax relief services in San Diego?

We provide tax relief services including payment plans, offer-in-compromise screening, and audit/notice help. Consultations are available online for clients statewide.

Can I hire a tax professional in San Diego for IRS issues?

Yes. You can hire San Diego Precision Tax Service (Enrolled Agent) to represent you before the IRS, prepare filings, and communicate with the IRS on your case.

How to choose a tax professional in California?

Look for licensure (EA/CPA), relevant experience with your issue, transparent pricing, and secure document handling. We meet these standards and work statewide.

2025 Year-End Tax Strategies for Crypto Investors - Donate Crypto to Charity

Viktoriya Barsukova, EA, MBA
Nov 12
4 min read

Donate Crypto and Double Your Tax Benefits - 2025 Year-End Tax Strategies for Crypto Investors

(Part 4 of the 2025 Year-End Tax Strategies for Crypto Investors series)

In earlier parts of this series, 2025 Year-End Tax Strategies for Crypto Investors, we discussed how to step up your basis, harvest losses, and take advantage of the wash-sale exception.

In this article, we’ll explore another powerful move for 2025—donating appreciated crypto to charity. Done right, this strategy eliminates capital gains while giving you a full charitable deduction.

Donate Crypto to Charity

If (a) you’re charitably inclined and (b) you itemize your deductions, donating appreciated crypto to charity is a great tax strategy. You’ll not only help a charity but also get two terrific tax benefits:

You avoid the capital gains taxes on your appreciated crypto donation.
You obtain a charitable contribution deduction equal to the value of the crypto at the time of the donation.

To get the charitable deduction, you must donate your crypto to a Section 501(c)(3) charitable organization. There are several directories for such organizations.4 Many charities accept crypto donations directly. You also have the option to make donations through online cryptocurrency platforms such as The Giving Block.

Alternatively, you can set up and contribute cryptocurrency to a donor-advised fund (DAF). This way, you can deduct your entire contribution in 2025 and then distribute the money to any number of charities over any number of future years.5 You need to open a DAF account with a sponsoring organization and gift your crypto to it. Not all DAF sponsors accept crypto, but many do—including FidelityCharitable, the nation’s largest DAF.

To benefit from your charitable contributions, you must itemize your personal deductions on Schedule A. If you don’t itemize, you get no tax benefit from a donation. You should itemize only if your total personal deductions (charitable contributions and other personal deductions such as mortgage interest and property taxes) exceed your standard deduction, which (for 2025) is $15,750 for singles and $31,500 for marrieds filing jointly.6

When you donate crypto directly to charity, you do not recognize income, gain, or loss from the donation. Instead, you get to deduct the value of the crypto, which is treated as a donation of property, similar to donating stocks or other securities.

*If you’ve held your crypto for more than one year, you may deduct its fair market value on the date of the donation.7

*If you’ve owned the crypto less than one year, your charitable donation is limited to the lesserof the crypto’s basis or fair market value.8 Thus, if crypto held less than one year has appreciated, your donation is limited to its basis.

There is an annual limit on your deduction for charitable contributions. For appreciated crypto, the limit is 30 percent of your adjusted gross income (AGI).9

Example. Jane purchased one Bitcoin for $20,000 three years ago. She donates it to the Red Cross. On that date, its fair market value is $110,000. Jane gets a $110,000 charitable deduction, which she can fully deduct from her $350,000 AGI.

The $110,000 deduction saves Jane $38,500 in income tax at her 35 percent marginal tax rate.
The donation allows Jane to pay zero taxes on the $90,000 capital gain ($110,000 - $20,000).

Key point. This one donation by Jane triggers two tax benefits: the tax deduction and no tax on the profits.

If Jane wishes, she can use the tax savings to purchase more Bitcoin.

When you donate crypto, you need to obtain a written acknowledgment from the charitable organization, in which the organization sets forth10

· the organization’s name,

· the date and location of the donation,

· a description of the donation (e.g., “Bitcoin”), and

· a statement that no goods or services were provided in return for the donation (if that is the case).

If you donate more than $5,000 in crypto (including to a DAF), you must obtain an appraisal from a qualified appraiser and attach it to your tax return along with IRS Form 8283, Noncash Charitable Contributions.11 (You can find crypto appraisers online.) The charitable organization must acknowledge receipt of the crypto and confirm it is a qualified organization, by completing and signing Part IV of Section B of Form 8283.12

Stay tuned: additional articles in this series will continue exploring advanced year-end crypto tax planning opportunities.

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✉️ viktoriya@sandiegotaxhelp.com