Wonderful experience with the entire team. We received a full appraisal that was very thorough and included everything we needed as a nonprofit from an appraisal company to accept a donated vehicle and provide the appropriate documentation.
DIGITAL ASSET DONATIONS
Cryptocurrency Appraisal
Cryptocurrency and digital asset appraisal services for IRS Form 8283 filings and non-cash charitable deductions, prepared in accordance with USPAP. Legacy Donation Appraisers values Bitcoin, Ethereum, altcoins, and NFT donations nationwide.
- USPAP-Compliant & IRS-Qualified Appraisals
- IRS Form 8283 included
- Secure a tax deduction for your non-cash charitable donations
DIGITAL ASSETS
Selling Crypto to Fund a Gift Triggers Capital Gains
Selling appreciated cryptocurrency to fund a donation triggers capital gains tax on the increase in value. Donating coins or tokens directly instead avoids that tax, though the size of the benefit depends on how long the position was held: crypto held for more than a year is long-term capital gain property, while crypto held a year or less is ordinary income property, and the deduction is generally limited to fair market value minus the short-term gain, in practice the cost basis.
The IRS treats cryptocurrency as property, not currency, for tax purposes. IRS Chief Counsel Advice 202302012 confirms that cryptocurrency isn't readily valued property: once a claimed gift exceeds $5,000, a qualified appraisal is required, and relying on an exchange's reported value instead doesn't qualify for the IRS's reasonable-cause exception.
Wallet-to-charity transfers, exchange withdrawals, and NFT gifts each leave a different kind of transaction trail, and our appraisers document that history alongside the fair market value conclusion so your donation has the records a qualified appraisal depends on.
IRS RULES
What the IRS Requires for Cryptocurrency Donations
An Exchange Price Isn't an Appraisal
IRS Chief Counsel Advice 202302012 confirms cryptocurrency isn't readily valued property: a gift claimed above $5,000 needs a qualified appraisal, and relying on an exchange's reported value doesn't qualify for the reasonable-cause exception.
Qualified Appraisal Above $5,000
When the deduction is more than $5,000 for an item or group of similar items, the IRS requires a qualified appraisal by a qualified appraiser and Section B of Form 8283, which the appraiser signs in Part IV and the charity acknowledges in Part V.
Held a Year or Less
Capital assets held for one year or less are ordinary income property, so the deduction is generally limited to fair market value minus the short-term gain, in practice the cost basis.
The 60-Day Window
The appraisal must be signed and dated no earlier than 60 days before the contribution and received before the due date, including extensions, of the return that claims the deduction.
Over $500,000, Attach It
For donations valued at more than $500,000, the qualified appraisal itself must be attached to the return.
Similar Items Count Together
Items of the same general category, such as coin collections, paintings, books, clothing, jewelry, or nonpublicly traded stock, are added together for the $5,000 test, even when they go to more than one charity.
DIGITAL ASSET CATEGORIES
Bitcoin to NFTs: The Digital Assets We Cover
Major Cryptocurrencies
Bitcoin, Ethereum, and dollar-pegged stablecoins make up the bulk of crypto donations and have the deepest, most liquid price history to support a fair market value conclusion.
Common asset types include:
- Bitcoin (BTC)
- Ethereum (ETH)
- Stablecoins
Altcoins & Tokens
Smaller-cap coins and utility tokens trade on fewer exchanges and with thinner volume, so the appraisal has to account for that liquidity when establishing value.
Common asset types include:
- Litecoin, Ripple (XRP), Solana, Cardano
- Other altcoins and utility tokens
Digital Collectibles
NFTs and other digital collectibles rarely have a single spot price, so value depends on comparable sales and the specific collection's trading history.
Common asset types include:
- NFTs (non-fungible tokens)
- Digital art and collectibles
- Staking rewards and airdrops
DONATION ROUTES
Crypto Donations Move Through a Few Common Paths
Direct Wallet-to-Charity Transfer
Coins or tokens move straight from the donor's wallet to a charity's wallet, with the transaction hash establishing the transfer date.
Donor-Advised Funds (DAFs)
Many DAF sponsors accept crypto directly and liquidate it after the gift; the appraisal values the holding as of the donation date, not the conversion price.
Private Foundations
Foundations increasingly accept digital assets as part of a diversified charitable giving strategy, subject to the same appraisal and Form 8283 requirements.
HOW IT WORKS
Documenting a Wallet's Journey to Fair Market Value
- 01
Wallet & Transaction Documentation
Share wallet addresses, exchange statements, or transfer records showing the holding and the date it left your control.
- 02
Fair Market Value Research
We pull pricing from reputable exchanges at the date and time of the donation, using volume-weighted pricing for less liquid tokens.
- 03
Chain-of-Custody Review
We document the specific transaction history so the reported holding period and transfer date are clearly supported.
- 04
USPAP-Compliant Report
We prepare a written appraisal report stating fair market value and the methodology used to reach it.
- 05
Form 8283 Part IV Completed
Our appraiser signs the Appraiser Declaration in Part IV so your donation is ready to file with Section B.
Donating Crypto Above $5,000?
An exchange price isn't a qualified appraisal, per IRS Chief Counsel Advice 202302012. Get the appraisal before you file.
PRICING
What Determines the Cost of a Cryptocurrency Appraisal
Number of Wallets and Holdings
More wallets, exchanges, or distinct coins mean more individual valuations to research and document.
Token Liquidity
Major coins with deep exchange volume price faster than thinly traded altcoins or tokens.
NFT Comparable Research
NFTs and digital collectibles require comparable-sales research against a collection's trading history, which adds scope beyond a simple spot-price lookup.
Completeness of Transaction Records
Wallet addresses, exchange statements, and transfer records that clearly show the transfer date speed the work; gaps mean more research to fill in.
Number of Transactions
A single transfer prices faster than a donation made up of many separate transactions, staking rewards, or airdrop events, each of which may need its own valuation date.
Your Deadline
We confirm timing up front, including whether expedited service is available for your filing date.
CLIENT VOICES
What Donors and Advisors Say About Our Appraisals
We had a very unusual appraisal request for merchandise valued at over half a million dollars, and the team handled it quickly and thoroughly. We will definitely return for any future appraisal needs and highly recommend them to anyone in need of appraisal services. – TGBA, Inc., Tampa, FL
Very thorough and professional — great communication and outstanding service. Highly impressed with their work!
APPRAISAL STANDARDS
Every Appraisal Follows USPAP Standards
Every cryptocurrency and digital asset appraisal is prepared in accordance with USPAP, the standard published by The Appraisal Foundation.
The Appraisal Foundation (USPAP)
RELATED SERVICES
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Business Valuation for Charitable Donation
USPAP-compliant valuations of closely held business interests donated to charity.
Inventory Appraisal for Charitable Donation
USPAP-compliant appraisals of donated retail, wholesale, and manufacturing inventory.
DIGITAL ASSET QUESTIONS
Cryptocurrency Donation Appraisal Questions
Do I need a qualified appraisal to donate cryptocurrency?
Yes. The IRS treats cryptocurrency as property, and IRS Chief Counsel Advice 202302012 confirms it isn't readily valued property. Once the fair market value of a donated digital asset exceeds $5,000, a qualified appraisal prepared in accordance with USPAP is required, even though the coin trades on a public exchange.
Can I just use the exchange price as my appraisal?
No. Per IRS Chief Counsel Advice 202302012, relying on an exchange's reported value doesn't qualify for the reasonable-cause exception, and a screenshot or broker quote does not satisfy the qualified appraisal requirement. The appraisal has to be prepared and signed by a qualified appraiser under Part IV of Form 8283, Section B.
How is fair market value determined for NFTs?
NFTs are valued using comparable sales of similar tokens, the specific collection's trading history, and creator or collection reputation, since there is no single spot price the way there is for major cryptocurrencies.
Are staking rewards or airdrops included in the donation value?
Yes, if they were received before the donation date and are part of the transferred holding. Each reward or airdrop may need its own valuation based on its receipt date and fair market value at that time.
Does it matter how long I've held the crypto before donating it?
Yes. Crypto held for more than a year is long-term capital gain property, and the deduction is generally based on its fair market value. Crypto held a year or less is ordinary income property, so the deduction is generally limited to fair market value minus the short-term gain, in practice the cost basis.
Is there a deadline for when the appraisal has to be signed?
Yes. The qualified appraisal must be signed and dated no earlier than 60 days before the date of the contribution, and it must be received before the due date, including extensions, of the return on which the deduction is first claimed.
How much does a cryptocurrency donation appraisal cost?
Fees are quoted as a fixed fee before any work begins, never hourly. Scope depends on how many holdings, tokens, or wallets are involved and how complete your transaction records are.
How long does a crypto donation appraisal take?
Turnaround depends on the complexity of the holdings and how many separate assets or transactions are involved. Tell us your deadline and we'll confirm up front whether we can meet it.
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Request Your Crypto Appraisal
A transparent, fixed fee, confirmed before we start.