Bitcoin owners donated $70 Million to charity Last Year.Do you know why? Tax.

Following Bitcoin's spectacular rise in value, crypto currency traders had a good year in 2017.This reflected favourably on charities as almost $70 million was received as donations in Bitcoin and other Crypto currencies.
Some of these donation could be normal attempts to spread the wealth among as many people as possible but according to a report, donating your Crypto can give you an advantage with the the tax man.
It's no secret that the IRS has kept an eye on the wildly popular cryptocurrency, ruling that bitcoin and others like it are considered property for tax purposes. This means that if you cash out, you're likely on the hook to report capital gains to the Tax Man – and those gains can be substantial, particularly if you bought bitcoin back in 2010 when one unit was worth less than a dollar.
There's a solution to that: Give your cryptocurrency to charity via your donor advised fund – an account that you can fund with highly appreciated assets and use for making grants to charities -- instead of cashing out.

This way, you unload assets that could face steep capital gains taxes and you collect a charitable contribution deduction for your 2017 taxes.

But rapid fluctuations in bitcoin and other cryptocurrencies present charitable organizations with an interesting problem: How do they capture the value of a volatile asset?
"It's interesting how volatile cryptocurrency can be in 24 hours," said Eileen Hesiman, president and CEO of the National Philanthropic Trust. "One gift lost about 12 percent of its value in a 36 hour period. Our policy is to sell as quickly as we can."

A lot of Crypto holders seem to have figured this out and many more will take this route in the days ahead.
Bitcoin has experienced a very good run in the last few days and the crypto traders are emitting positive outlooks on the Crypto market.


Watch this tax form video.