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Crypto Currency and the IRS Part 3 of 3
- Finally in October 2019, the IRS issued Rev. Rul 2019-24 dealing with hard forks and air drops. A hard fork is when there is a protocol change to crypto currency analogues to a stock split. There is not a new ledger of bitcoin cash which resulted when Bitcoin split between the original Bitcoin and a new ledger called Bitcoin cash. A hard fork is a split in the Blockchain, e.g. you get a differen currency for your Bitcoin. Do you have constructive receipt when you get this? Depends on whether you can spend and so forth.
- FAQs came with the 2019 ruling that answered many questions but many remain (e.g. was sale and 1031 remain open).