Crypto donation tax: what the IRS, HMRC, CRA and ATO say

The short answer

Two questions matter when you give crypto. First, does handing it over count as selling it, so that you might owe tax on any rise in value? Second, can you claim a deduction, credit or relief for the gift?

On the first question, the official guidance in all four countries treats giving crypto away as a disposal, though each has exceptions. On the second, relief is tied to the kind of organisation you give to: a charity described in the US tax code, a UK charity, a Canadian qualified donee, or an Australian deductible gift recipient (DGR). A gift to an organisation outside those categories, including Fight for Palestine, doesn't earn relief. You may still have to work out whether the disposal itself created a gain.

United States (IRS)

The IRS says that for US tax purposes, digital assets are considered property, not currency. Its virtual currency FAQs, which the IRS says generally apply to transactions completed before 1 January 2025, explain how that plays out for donations:

• If you donate virtual currency to a charitable organisation described in Internal Revenue Code section 170(c), you don't recognise income, gain or loss on the donation.
• Your deduction is generally the fair market value if you held the crypto for more than one year. If you held it for one year or less, it is the lower of your basis (what it cost you) and its fair market value.
• A deduction of $250 or more needs a contemporaneous written acknowledgment, and deductions over $5,000 involve Form 8283, which the charity generally signs.
• For a gift of digital assets to a person rather than a charity, the IRS points to Form 709, the gift tax return.

United Kingdom (HMRC)

HMRC's Cryptoassets Manual lists giving tokens away to another person as a disposal for Capital Gains Tax, unless the gift is to your spouse or civil partner. You work out the sterling value of what you gave and are treated as if you received that amount, even though you received nothing.

The same page says that if you donate tokens to charity, you won't have to pay Capital Gains Tax on them. It notes exceptions, including what it calls a "tainted donation". GOV.UK's tax relief guidance covers donations by individuals to charities and to community amateur sports clubs, so these rules don't help with a gift to an organisation outside those categories.

Canada (CRA)

The Canada Revenue Agency lists transferring ownership of a crypto-asset "by way of gift or donation" among the ways a disposition may occur. Depending on your circumstances, the CRA says income or loss from a disposal may be business income or a capital gain.

For the donation tax credit, the CRA's guidance on donations and gifts refers to gifts made to qualified donees, such as registered charities, and it keeps a list of the qualified donees who may issue official donation receipts. Check that list before you give if the credit matters to you.

Australia (ATO)

The ATO says that when you gift or donate crypto assets, you are disposing of them, and a donation is a CGT event like any other disposal. You need the value of the crypto at the time of the gift to work out whether you made a capital gain or loss.

• You can only claim a deduction for gifts to organisations with deductible gift recipient (DGR) status, and the gift must meet the ATO's gifts and donations conditions.
• Gifts through social media or crowdfunding platforms aren't deductible unless the recipient has DGR status. You can check DGR status on ABN Lookup.
• The ATO lists limited cases in which you generally don't pay tax on capital gains when donating crypto to a DGR, such as gifts made under a will. Outside those cases, you work out and report the CGT as usual.
• Keep records of the date you gave the crypto and its market value at the time.

Records to keep, and when to get advice

Whichever country you're in, keep the transaction ID (TxID), the date and time of the transfer, the amount of crypto you sent, and its value in your local currency at that moment. Keep a note of what the crypto originally cost you. These are the figures a tax return or an adviser will ask for.

Tax rules on crypto change, and the right answer can depend on how long you held the coins, whether you trade as a business, and where you are resident. A qualified tax adviser can tell you what applies to you. If a tax deduction matters to you, give to a registered charity in your own country. Our guide to donating to Gaza safely lists the official registers for checking one.