An Appreciated Asset, an Appreciated Gift
If you own Bitcoin or another digital currency, it may now be worth more than you paid for it. Bitcoin is one of the best-performing assets over the past five to 10 years. Many investors have a very low cost basis and should evaluate the tax implications before cashing in.
One impactful option that can save you on taxes is using cryptocurrency to support the University of Massachusetts Amherst and our students.
How it Works:
- Discuss using your cryptocurrency to make a gift to UMass Amherst with your financial advisor to see if it is the best option for you.
- Transfer your cryptocurrency. Contact Joseph K. Jayne at email@example.com or 413-577-1418 to learn how to make the transfer via our online wallet tool.
When you give Bitcoin or another cryptocurrency you have held for more than a year to support UMass, you:
- Qualify for an income tax deduction for its fair market value, up to 30% of your adjusted gross income (AGI) with a five-year carryover.
- Avoid the capital gains tax you would have paid if you sold it.
- Make an impact on UMass Amherst students today.
An Example of How it Works
Jeff purchased Bitcoin years ago for $400,000 that today is worth $1,000,000. He wants to make a gift to support his alma mater, UMass Amherst so he spoke with his financial advisor and decided to use his Bitcoin to fund his gift.
By giving his Bitcoin directly to UMass Amherst instead of selling it and then donating the money, Jeff does not have to pay long-term capital gain taxes, which would have been $120,000. He is also eligible for an income tax charitable deduction of $1,000,000 in the year he makes his gift. He is happy to know that UMass Amherst students will benefit from his generosity.
- Seek the advice of your financial or legal advisor.
- Contact Joseph K. Jayne at 413-577-1418 or firstname.lastname@example.org to learn more about using cryptocurrency to support UMass Amherst and our students.
- If you make a gift to the University of Massachusetts Amherst, please use our legal name and federal tax ID.
Legal Name: University of Massachusetts Amherst
Address: 134 Hicks Way, Amherst, MA 01003-9270
Federal Tax ID Number: Please contact us for our federal tax ID number.