Inaccessible Crypto Tokens Can’t Be Sold, but Can Be Donated for Tax Benefits
Key Points:
- Conceptual artist and legal scholar, Brian Frye, explains the rules governing the sale and donation of inaccessible crypto tokens.
- Inaccessible crypto tokens are those held in digital wallets that cannot be accessed due to lost passwords, misplaced keys, or other technical hurdles.
- Frye argues that while these tokens cannot be sold, they can be donated for tax benefits.
- By donating inaccessible tokens to a charitable organization, individuals may be eligible for significant tax deductions.
- These tax benefits arise from the difference between the current market value of the donated tokens and their initial cost.
- The Internal Revenue Service (IRS) expects taxpayers to accurately evaluate the fair market value of the donated tokens.
Hot Take:
Don’t let lost passwords or misplaced keys bring you down in the world of crypto! Brian Frye has found a silver lining in the form of donating inaccessible tokens for sweet tax benefits. It’s like turning a crypto frown upside down! So, if you can’t sell your tokens, why not spread some crypto cheer and donate them? Just make sure to accurately calculate their value, or you might end up with an IRS headache. With this creative solution, even the most unfortunate crypto mishaps can have a silver lining.
Read full article at https://www.coindesk.com/consensus-magazine/2023/11/22/1-way-to-revive-dead-nft-wallets/?utm_medium=referral&utm_source=rss&utm_campaign=headlines