How does the IRS view cryptocurrency airdrops and forks for tax purposes?

3 answers

• Dec 27, 2021 · 3 years ago
  The IRS treats cryptocurrency airdrops and forks as taxable events. When you receive an airdrop or participate in a fork, it is considered as income and must be reported on your tax return. The fair market value of the airdropped or forked coins at the time of receipt is used to determine the taxable amount. It is important to keep track of the value of the coins received as it will be used for tax calculations. Make sure to consult a tax professional or refer to IRS guidelines for more specific information on reporting airdrops and forks on your tax return.
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• Dec 27, 2021 · 3 years ago
  Airdrops and forks in the cryptocurrency world can be exciting, but they also come with tax implications. According to the IRS, airdrops and forks are considered taxable events, which means that you need to report them on your tax return. The value of the coins or tokens received through airdrops or forks is treated as income and should be included in your taxable income. It's important to keep records of the value of the coins received and consult with a tax professional to ensure you comply with the IRS regulations.
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• Dec 27, 2021 · 3 years ago
  At BYDFi, we understand that cryptocurrency airdrops and forks can be confusing when it comes to tax implications. The IRS views airdrops and forks as taxable events, meaning that they are subject to taxation. When you receive an airdrop or participate in a fork, the fair market value of the coins or tokens received is considered as income and should be reported on your tax return. It's important to keep track of the value of the airdropped or forked coins at the time of receipt to accurately report your taxable income. If you have any specific questions or concerns about how airdrops and forks are treated for tax purposes, we recommend consulting with a tax professional.
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