Charitable Deductions for Digital Asset Donations Act

Key Points

• This bill makes it easier for people to donate cryptocurrency to charities. Currently, the law often requires a professional appraisal to prove how much a digital gift is worth for tax purposes. This bill would remove that step for popular digital assets that already have clear market prices.
• To qualify for this easier rule, the digital asset must be widely traded. This means it must have a total market value of at least $500 million and have been available on an exchange for at least one full year. This ensures the price is easy to verify without hiring a special expert.
• The change aims to help charities receive more donations by lowering the cost and hassle for donors. Instead of paying for an expensive appraisal, donors could simply use the market price from a crypto exchange to claim their tax deduction on their yearly returns.
• The new rules would start for the tax year beginning in 2027. It also includes protections to prevent people from manipulating prices or using the rule for assets they mostly own themselves. The government would also keep a list of approved stablecoins that count as money for these rules.

Impact Analysis

Govbase has not yet run an impact analysis on this legislation.