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IRS: Coins From Crypto Hard Forks Create Taxable Income

Is a Hard Fork Really Income?Outside of the already established rules for declaring short-term or long-term capital gains, the IRS believes coins originating in a hard fork created taxable income for the year in which the coins were received.IRS cryptocurrency guidance!"If a hard fork is followed by an airdrop and you receive new cryptocurrency, you will have taxable income in the taxable year you receive that cryptocurrency.”More to come as we digest— Neeraj K. Agrawal (@NeerajKA) October 9, 2019Twitter commenters immediately noted that the IRS misinterpreted hard forks, which do not lead to an airdrop. Instead, the owner is immediately in control of assets on a new chain. The IRS, however, has put up a condition for recognizing income from airdropped coins. The taxable event...