Donate Crypto to Charitable Foundation

[John Kram]

Hi all,

I was advised some time ago to move my crypto assets to my charitable foundation,
Prices are down, so might be the best time to do it.

Anyone could confirm the idea

and do you have a form, or process how you do the donation?
Thanks
John

 

[Martin Everson]

I think your trolling :-(

 

[John Kram]

I think your trolling :-(

and again, I have no idea what is your problem.

I have crypto assets on "my name", I have an IBC owned by a foundation, need to donate the crypto to the foundation when prices are low, so any capital gain is happening in the foundation and not on my name. Every wealthy ppl does the same, question how you do it legally, If you can help, pls help, if you just troll, pls just leave me alone, thanks!

 

[Martin Everson]

Your question is undefined. You need to provide more details i.e where the foundation is located and also the IBC. You see the problem with your question..lol? It is not a question one can answer if you give no details That's why I think your trolling.

Why not ask the person who advised you before also..lol ;-)

 

[John Kram]

sure, I asked them as well, just takes time to get the reply, and as always, I need second opinions as well
Does it make a difference? if it does, IBC Belize, Foundation Seychelles.

 

[Martin Everson]

Absolutely where the charitable foundation is based makes a difference. If for example you said I have a Netherlands Foundation I would give a different answer to if you had a Bahamas IBC and Bahamas Foundation. Tax treatment is vastly different as you can imagine. i.e one has no tax and the other potential tax liabilities if not done correctly.

In a zero tax environment why does capital gains matter...lol? The picture is not complete you also have not said where you are resident. Tax treatment on donations varies across countries. You also need to consider if the charitable foundation is recognized and accepted as such in your home country.

You see the issue? Anybody reading this is like how do you begin to answer such an undefined question.....he must be a troll or incompetent to not give the most important factors needed to answer the question ;-) and you wonder why you get no replies :-(

 

[John Kram]

hey, thanks much! It makes sense now, regarding how complex the issue. I was under the impression it does not matter where I reside for charitable donations. If I dont want to use it in the resident country to reduce my tax liabilities anyway.

I am resident in the UK right now, but I bought crypto when I was not yet resident in the UK. To make it more complex, I am planning to move to France or Portugal next year, so might be better to stay put and do nothing in this regard?

btw, Do I have to declare any crypto holdings in the UK?

Thanks much!

 

[John Kram]

what triggered me to act is that literally the donation I would make dropped to 40% due to the ongoing crypto crash.

 

[Martin Everson]

The UK Finance Act of 2010 covers tax relief on gifts not only to UK HMRC registered charity but also to EU registered charities. Unfortunately a Seychelles Foundation does not fall under either of those criteria's so is pointless in your case. You get no tax advantages by giving to a Seychelles Foundation. In fact if you did so HMRC will give you problems.

In terms of declaring crypto you hold while resident in UK. Yes you must absolutely declare ownership on your tax return if you are UK resident. If you bought and held crypto and never sold any then no tax is due but HMRC will still wants to know.