Ledgible can produce several different report types to help you in your tax filings.
Individuals, partnerships, and corporations file Form 8283 to report information about noncash charitable contributions when the amount of their deduction for all noncash gifts is more than $500.
This article is a brief guide to the IRS 8283 form produced by Ledgible tax for your cryptocurrency transactions.
The form contains 2 main sections for reporting of the donated assets:
Section A. Donated Property of $5,000 or Less and Publicly Traded Securities—List in this section only an item (or a group of similar items) for which you claimed a deduction of $5,000 or less.
Section B. Donated Property Over $5,000 (Except Publicly Traded Securities, Vehicles, Intellectual Property or Inventory Reportable in Section A)—Complete this section for one item (or a group of similar items) for which you claimed a deduction of more than $5,000 per item or group (except contributions reportable in Section A). Provide a separate form for each item donated unless it is part of a group of similar items. A qualified appraisal is generally required for items reportable in Section B.
The 8283 can be used in many ways.
- It can be attached to your own personally prepared return.
- Some tax software can import the 8283 form - though it may be better to use the other Ledgible Tax reports that can be directly imported - please take a moment to review those.
- It can be sent to your tax preparer/CPA for them to include in your overall tax return.
Please note that Ledgible Tax will produce an attachment for the 8283 form so as to include all cryptocurrency transactions applicable to it. Therefore, if you have many entries in the report, please check all pages to be sure you review all of your records.
Ledgible is not a qualified appraiser and thus will not sign part IV of the form should your donation deduction be more than $5,000. Parts II, III, IV, and V are the responsibility of the taxpayer, their accountant, and the receiving charitable organization. Please consult your tax accountant to successfully complete and file the form.
To generate your form 8283, please follow the instructions outlined in this article on report creation, and select Form 8283.