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Yes you can, but read the rules below.

You can only claim a tax deduction for gifts or donations to organisations that have a status as a deductible gift recipient (DGR). The DGR status of an organisation can be checked at ABN Look-up: Deductible gift recipients. The gift must be greater than $2.

If you receive a raffle ticket, dinner attendance, event entry, chocolates, or anything like that, then your donation can’t be claimed as a deduction. Basically, if you receive something because of your donation, then you can’t claim the donation as a tax deduction.

What is a gift?

  • There is a transfer of money or property
  • The transfer is made voluntarily
  • The donor does not expect anything in return for the gift
  • The donor does not materially benefit from the gift.

Who can claim?

A tax deduction for a gift is claimed by the person or organisation that makes the gift (the donor). A donor can be:

  • An individual
  • A company
  • A trust
  • Another type of taxpayer.

CGT consequences

Because crypto assets are property, a donation of crypto assets may also result in capital gains tax (CGT) consequences. Donating a crypto asset is a CGT event, similar to any other disposal of a CGT asset.

However, the ATO has advised that you will not have to pay CGT when donating crypto assets to DGRs for:

  • gifts made under a will (testamentary gifts) — you cannot claim a tax deduction for these gifts
  • property donated under the Cultural Gifts Program
  • personal use assets

If CGT applies to a gift of crypto assets, they are valued at the market value of the asset at the time of the CGT event.

Tax loss

A deduction for a gift or contribution cannot add to or create a tax loss. However, you can choose to spread the tax deduction for a gift or contribution over a period of up to five income years. A special form called  “Election to spread gift deduction” needs to be completed in order to do this.

 

If you have any specific questions relating to your particular situation, please contact us at questions@accoladeaccounting.com.au or phone us (08) 6263 4466 or (03) 9524 3145