I beg to differ. IRS considers air drops and crypto earnings as a taxable event. You should enter $0 for what you paid and the fair market value at the time of the receiving it (for example: you received 1 EOS, which at the time of the event was worth $65). Then IRS will tax you for this $65. It's like winning lottery or receiving prize money.
This on the other hand raises another question: how much will IRS tax me when I sell this EOS. I believe then you should enter the $65 (the cost basis) and the current EOS price at the time of sale($165 for example) Then IRS is supposed to tax the gain($100)*.
*Many tax professionals are still confused about crypto. Last time I asked for advice (Turbotax), it turned out I knew more than specialist (no offense), lol. This doesn't mean I know everything, just I believe I'm right about this particular topic.
