Do I have income when a soft fork of cryptocurrency I own occurs?

No.  A soft fork occurs when a distributed ledger undergoes a protocol change that does not result in a diversion of the ledger and thus does not result in the creation of a new cryptocurrency.  Because soft forks do not result in you receiving new cryptocurrency, you will be in the same position you were in prior to the soft fork, meaning that the soft fork will not result in any income to you.

  • income, cryptocurrency, soft fork
  • 0 Users Found This Useful
Was this answer helpful?

Related Articles

What is Virtual Currency?

Virtual currency is a digital representation of value that functions as a medium of exchange, a...

Tax Consequences

The sale or other exchange of virtual currencies, or the use of virtual currencies to pay for...

How is virtual currency treated for Federal income tax purposes?

Virtual currency is treated as property and general tax principles applicable to property...

What is cryptocurrency?

Cryptocurrency is a type of virtual currency that uses cryptography to secure transactions that...

How do I determine if my gain or loss is a short-term or long-term capital gain or loss?

If you held the virtual currency for one year or less before selling or exchanging the virtual...