Bitcoin Core nonprofit receives approval for tax exemptions and donation benefits

A new not-for-profit organization to fund research and education in the field of bitcoin development has been approved for the special tax status granting benefits to donors.

Brink, which started in the fall, was approved as a 503 (c) (3) organization, according to a blog post on Feb.10. The status exempts Brink from federal taxes and brings some interesting benefits to donors, especially given his use of Bitcoin.

Donations to 503 (c) (3) organizations in the US have always been a huge tax loss, but given the long-term confusion about the IRS that apparently requires Bitcoin users to pay tax on capital income for any use of Bitcoin as payment. In his ad, Brink says he offers an alternative:

“Donations of long-term valued assets such as Bitcoin are generally not subject to capital gains taxes and are eligible for full market value income tax deductions.”

Bitcoin Core nonprofit receives approval for tax exemptions and donation benefits
Bitcoin Core nonprofit receives approval for tax exemptions and donation benefits

Led by leading Bitcoin developer John Newberry, Brink offers educational and scholarship programs for new developers. The legal status as a non-profit association according to 503 (3) (c) will also open up Brink to new disclosure obligations, which can be simplified by the innate transparency of Bitcoin.

Yet, The BTC address Brink is promoting on his Twitter account does not appear to be in use, suggesting that his donations were received from existing supporters like the Human Rights Foundation and Square Crypto through other channels or even through Fiat. Newberry did not respond to Cointelegraph’s request for comment at press time.

Confusion about having to pay capital gains taxes on every payment in Bitcoin has led many to require a de minimis assessment of the value of those payments before the IRS can intervene.

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