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New Member
posted Jun 1, 2019 12:01:47 PM

How do I report cryptocurrency forks (ie. bitcoin forks) and airdrops?

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3 Replies
Level 1
Jun 1, 2019 12:01:47 PM

Here is how to report cryptocurrency in TurboTax Online products:

Income and Expenses

Scroll to Investment Income 

Click show more

Select Stocks, Mutual Funds, Bonds, Other

Did you sell any investments in 2018? click "yes"

Did you get a 1099-B or a brokerage statement for these sales? click "no"

Choose the type of investment you sold, check "everything else" and "continue" 

Describe as cryptocurrency, add profits and date of sale

For more information:  TurboTax on Cryptocurrency


New Member
Jun 1, 2019 12:01:51 PM

Please note that I received a small amount of several of the bitcoin forks which occurred in 2018 and a couple of free coins (airdrops) for holding certain coins either on exchanges or in cryptocurrency wallets. Please also note that I have not sold any of the bitcoin forks or airdrops.

Level 1
Jun 1, 2019 12:01:53 PM

There are two current thoughts on forks. One is that you report as I directed above as if it were a sale. The other is that you delay reporting. The IRS has not issued an opinion on the subject. From my additional research, I think you are fine to not report anything on your tax return because there is so much sentiment against the reporting and we remain without IRS guidance. For more information, follow this link: <a rel="nofollow" target="_blank" href="https://www.cpajournal.com/2019/01/24/the-taxation-of-cryptocurrency/">https://www.cpajournal.com/2019/01/24/the-taxation-of-cryptocurrency/</a>