If you donate cryptocurrency to a charity, you may need a qualified appraisal, depending on the amount of the gift. In Chief Counsel Advice, the IRS denied a taxpayer’s charitable deduction of a cryptocurrency contribution because she didn’t obtain a qualified appraisal. The taxpayer argued that no appraisal was necessary for the $10,000 donation she claimed on her tax return because crypto “had a readily ascertainable value based on the value published by the cryptocurrency exchange.” The IRS disagreed, stating that a qualified appraisal was required because the taxpayer claimed a charitable deduction of over $5,000 for the donated cryptocurrency. (CCA 202302012)
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