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Taxes for Hard Forks

Taxes for Hard Forks

The reasonable approach, supported by tax advisors and the American Bar Association, assigns the original cost basis with the original coin and a $0 basis for the new coin on the day the hard fork occurs.

If the hard fork cryptocurrency is subsequently sold or exchanged, the amount realized on the day of the sale or exchange determined . Accordingly, the holding period for the forked cryptocurrency will start the day the hard fork occurs. Logically, the holding period of the original cryptocurrency remains, or is tacked

 

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