A new non-profit organization has been approved with the goal of funding education and research to develop bitcoins for a specific tax case and providing incentives to donors.

Brink, which launched this fall, has been approved as a 503 (c) (3) organization according to a February 10 blog post. This situation exempts Brink from federal taxes and provides some interesting benefits for donors, especially considering their use of bitcoin.

Donations to 503 (c) (3) organizations in the United States have always accounted for significant tax depreciation, but given the long-standing confusion with the IRS, it looks like bitcoin users should pay capital gains tax on bitcoin. Brink says in his ad that he offers an alternative:

“Donations of long-term valuable assets such as Bitcoin are generally not subject to capital gains tax and can be claimed as a tax deduction at full fair market value.”
Brink, led by John Newbury, a major Bitcoin developer, provides scholarships and education programs for new developers. Newberry told Cointelegraph that Brink researched the name from the beginning: “We always planned to use 501c3, and the company’s internal rules are fully consistent with this name.”

The 503 (3) (c) nonprofit legal status will also open up Brink to new disclosure requirements that could contribute to Bitcoin’s internal transparency.

However, it looks like the BTC address that Brink is announcing on Twitter is not being used. Newberry told Cointelegraph that the wallet is for a one-time donation, and said that those who wish can now donate bitcoin and currency here. The company’s bitcoin donation window actually leads to the Open Node API. Open Node offers instant conversions from cryptocurrencies to digital currencies, which begs the question: Does Brink really have BTC to BTC donations?

Newberry did not respond to Cointelegraph’s request for a wallet address.

Confusion over the need to pay capital gains tax on any payment in bitcoin has led many to demand a minimum value for these payments before tax authorities can receive them.

Source: CoinTelegraph

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