Bitcoin Appraiser for IRS
For Bitcoin donations in excess of $5,000 the IRS requires a signature on Form 8283 which is included with the donors tax filing by a qualified appraiser.
IRS publication 561 defines a qualified appraiser.
A qualified appraiser is an individual with verifiable education and experience in valuing the type of property for which the appraisal is performed.
4. The individual is not an excluded individual.
Excluded individuals. The following individuals cannot be qualified appraisers for the donated property.
My Bitcoin appraisals are prepared under the AICPA standards as a CPA and other CPAs have peer reviewed my work. One of my clients has valued art for the IRS for many decades and I have used him as a resource as well. For the last 5 years I have been performing Bitcoin and crypto donation valuations because of my interest in charity and virtual coin tax compliance.
If you are considering a Bitcoin donation or virtual currency donation over $5,000 please contact Randy Tarpey CPA to assist with completion of form 8283 including an independent qualified appraisal. This article is not intended as legal, tax, financial or other advice. So check with your adviser on how the rules may apply to you.
Randy Tarpey CPA