Bitcoin hard fork tax consequences


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To begin with this post is directed at those of us who do, in fact, carefully track and pay our taxes on bitcoin.

Every time I buy bitcoin I carefully track my cost basis and when I bought the asset, to determine my taxable gains when I sell and whether or not it qualifies as long or short term capital gains.

In the event of a hardfork that ends up producing two viable tokens, both with a market value, how do you take that into account.

Which one is the 'real' original token? Who decides? I mean I bought BTC core not BTU, so which one is considered the 'new' asset?

How do I determine cost basis for the new token? Is it 'free' or a percentage of the original cost basis of the token before the split?

What is the acquisition date of the new token? At the date of the split? Does that reset the clock on long term capital gains?

Presumably tax paying owners of ETC/ETH have had to deal with these questions. What did they do?

Strange times indeed.

submitted by /u/jratcliff63367
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247 BTC

Bitcoin News Search

1 News - 247 News - 247 Bitcoin - 1 Search


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