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Glossary

Qualified appraisal: US charitable gifts of bitcoin

A formal valuation by a qualified appraiser that US tax law requires before a large deduction for a gift of property, including bitcoin.

Education only

Definition. A valuation required by 26 U.S.C. 170(f)(11) for a charitable deduction of more than $5,000 for property. The IRS has said this applies to cryptocurrency.

How it works

This is a US term. Section 170(f)(11)(C) of the Internal Revenue Code requires a qualified appraisal for a contribution of property where a deduction of more than $5,000 is claimed, and section 170(f)(11)(D) requires the appraisal to be attached to the return where the deduction is more than $500,000. Noncash contributions are reported on Form 8283.

How the IRS applies it to bitcoin

IRS Chief Counsel Advice 202302012 concluded that a cryptocurrency donation over $5,000 needs a qualified appraisal, and that relying on an exchange price instead did not meet the reasonable cause exception. Readily available market prices are not a substitute for the appraisal the statute asks for. Chief Counsel Advice cannot be cited as precedent, but it shows how the IRS reads the rule.

Why it matters for a company

A C corporation that gives bitcoin to a charity and claims more than $5,000 without a qualified appraisal risks losing the deduction. The appraisal has to be arranged around the time of the gift, so it belongs in the plan from the start, alongside the charity's acknowledgement, the transaction ID and the cost records. Our judgement, not a rule: agree the timetable with the appraiser and the charity before any bitcoin moves.

Example only, fictional. A US corporation plans to give bitcoin worth more than $5,000 to a public charity. It engages an appraiser first, sends the bitcoin to the charity's address after a small test payment, and keeps the appraisal, the acknowledgement and Form 8283 with the return.

In the UK

The UK has no equivalent requirement for company gifts, but the tax treatment differs: see the UK section of the charity guide.

Common mistakes

Sources

Primary sources only. Each link was checked on 9 November 2026. Rules change, so confirm the current version with your adviser.

  1. govinfo (US Code)26 U.S.C. 170: charitable contributions, including (b)(2) corporations, (d)(2) carryover, (e)(1) reductions and (f)(11) appraisals
  2. IRSChief Counsel Advice 202302012: qualified appraisal required for cryptocurrency contributions over $5,000 (PDF)
  3. IRSAbout Form 8283, Noncash Charitable Contributions
Education, not advice.

This is general information and education only. It is not financial, investment, tax, accounting, legal or regulatory advice, and it is not a recommendation to buy, sell or hold bitcoin or any other asset. It does not take account of your circumstances or those of your company. You must obtain your own official professional advice to confirm this information is correct before acting on it.

Rules change. This information is correct to our understanding at the last-reviewed date, but it may be incomplete or out of date, and official sources take precedence. Bitcoin is volatile. A company that buys it could lose some or all of the money it puts in.

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