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Airdrops – Coins you received from Airdrops

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Some blockchain projects form their community by giving away their coins to token holders of existing coins. There are also Airdrops as part of marketing campaigns. If a deposit is actually a credit of coins from an Airdrop, then classify it as an “Airdrop”. The airdrop virtual currency will be taxed as ordinary income on the date of receipt and the holding period will begin on that day.

The basis of the airdrop virtual currency and the amount recognized as ordinary income will be the fair market value of the virtual currency on the day it is received.

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