Can I get a tax deduction in Australia?
Yes. BUT you must meet the ATO requirements.
- The ATO classifies cryptocurrency as Property
- Property can be gifted to Backpack Bed for Homeless.
- To be tax deductible, a donor's gift must be:
How does the tax deduction / gift process work?
- You gift your cryptocurrency to the charity.
- Backpack Bed for Homeless will provide you with a receipt that describes the gifted Property (e.g. 2 Ether (ETH)).
For tax deductible gifts:
- If you owned the cryptocurrency for less than 12 months
- You will need to keep your records of the Property purchase.
- You are responsible to value your donation in $AUD and keep any records of how you did this.
- If you think your donation is valued at over $5,000 you need to get a valuation from the ATO:
- You will need to complete the Request for Valuation form on the ATO website.
- You will need to complete the Certificate of Donation form on the ATO website. Backpack Bed for Homeless will also sign this form after you have completed it (before ATO submission).
How do I make my cryptocurrency donation?
- Backpack Bed for Homeless has a crypto wallet. Once you complete the form above you will be provided the charities unique wallet payment address and QR code to complete the transfer.
- You can donate Bitcoin (BTC), Ether (ETH), Litecoin (LTC) + more.
- If you wish to donate any other cryptocurrency please contact us as we can arrange to accept more cryptocurrencies.
- Once we receive your cryptocurrency donation we will provide a receipt, unless you choose to donate anonymously.
- If you also need to get the ATO to value your donation (valued at over $5,000) we will also sign the Certificate of Donation form you submit to the ATO.
Can I make an anonymous Crypto donation?
Yes - however, if you would like a tax deduction the ATO requires us to record your name and email or for the donor to claim a deduction by using other records.
Capital Gains Tax (CGT) on gifted Cryptocurrency.
The ATO website says “A capital gains tax (CGT) event occurs when you dispose of your cryptocurrency. A disposal can occur when you gift cryptocurrency”.
Therefore, gifting cryptocurrency could also produce a CGT gain or loss for the donor. Please consult with your financial adviser to determine how this effects you.
What if I mine cryptocurrency?
If you did not purchase the Property or if you create or produce the donated Property the ATO does not classify the donation as tax deductible.
Tax Information
Swags for Homeless Ltd trading as Backpack Bed for Homeless is a registered DGR (item 1) charity. The information provided here is of a general nature only and has been prepared without taking into account your relevant personal or legal circumstances. Please consult with your financial adviser to determine your tax benefits.
Please contact us if you have further questions.
