3 ms·
> 6. One of your coins forks I've been advised to report these as regular income, using the value of the asset on the day you received it. For example, if you
by defen 9y ago
> 6. One of your coins forks
I've been advised to report these as regular income, using the value of the asset on the day you received it. For example, if you were holding 1 Bitcoin on August 1 (and therefore received 1 Bitcoin Cash due to the fork) you would report regular income of $294.60 (value of Bitcoin Cash at time of fork). If you eventually sell it, your cost basis is then $294.60.
- panarky 9y agoWhat if there's no active market at the time of the fork? For example, on October 24, 2017 for Bitcoin Gold, or on December 12, 2017 for UnitedBitcoin, there was no market. What do you do? What if there's an illiquid market with crazy prices at the time of the fork. Do you use that market price even if you're physically unable to sell your forked coins on that market?
- sushid 9y agoI'm not a CPA either but considering it income on the day of the fork is assured not a burden on you. That means you have tax obligations on all potential future forks, regardless of whether you know it or do anything with that information. IIRC the suggestion I found online was to pay capital gains tax on the full amount you sold or exchanged the coin for.