Bitcoin core non-profit gets approved for tax exemption, perks for donors
The new nonprofit, which aims to fund education and research on bitcoin development, has been granted special tax status that offers benefits to donors.
Brink, which launched in the fall, was announced as a new product, according to a blog post from the 10th. February recognized as a 503(c)(3) organization. This status exempts Brink from federal taxes and offers attractive benefits to donors, including the use of bitcoin.
Donations to 503(c)(3) organizations in the U.S. have traditionally been a significant tax deduction, but given the prolonged confusion at the IRS, it appears that bitcoin users will have to pay capital gains taxes for any use of bitcoin as a means of payment. In his announcement, Brink says he’s offering an alternative:
Donations of long-term assets, such as. B. Bitcoin, are generally not subject to capital gains tax and can be deducted up to the full market value from income tax.
Brink is led by John Newberry, developer of the bitcoin core, and offers scholarships and educational programs for newcomers. The legal status of 503(3)(c) nonprofit will also open Brink up to new disclosure requirements that could be facilitated by Bitcoin’s innate transparency.
However, the BTC address Brink provides in his Twitter feed appears to be unused, suggesting that his donations from existing backers such as the Human Rights Foundation and Square Crypto go through other channels or are not used at all. Newberry did not respond to Cointelegraph’s request for comment at the time of publication.
The confusion that capital gains taxes must be paid on every bitcoin payment has led many people to claim de minimis fees for these payments before the IRS takes over.