Do I have to pay taxes on my crypto wealth? Can I donate it?
There are lots of things you can do if you have crypto wealth. One is sell it. So many people talk about the next-big-thing, so let me tell you what’s really happening with blockchain and cryptocurrency right now: the ICO market is overhyped, overpromised, and underdelivered. There are very few big upcoming ICOs that pose a material threat to incumbents in the industry right now, but they do exist. Meanwhile, most startups work with traditional financing instead of getting money from crowdsales. But if your startup does choose an ICO model for funding at some point, understand what you’re getting into first before spending any time or resources on building out their team or product (note: this doesn’t apply to something like OmiseGO where their model was completely disruption-ready). And don’t give them any equity either; treat it as debt since they can file for an IPO anytime they want after changing their terms through an amendment agreement (read more advice here). (That said, if you simply agree that they can amend these terms without consulting with other members on the board then that might be okay.) Crypto wealth involves things like mining bitcoins and litecoins where there are no taxes due because Congress has deemed cryptocurrencies as commodities not currency. The IRS considers it income so long as its related to maintaining computers used for mining