Guidance on Crypto Hard Forks and Airdrops

December 11, 2019

On October 9, the IRS issued Revenue Ruling 2019-24, which addresses the tax treatment of cryptocurrency hard forks and airdrops. Very generally, a hard fork occurs when a cryptocurrency splits into two cryptocurrencies: the original pre-fork cryptocurrency and a new post-fork cryptocurrency. An airdrop occurs when a taxpayer receives cryptocurrency on a promotional basis.

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