Taxes for Hard Forks
For Hard Forks like Bitcoin Cash or Bitcoin SV, the sell or exchange is an taxable event.
According to the IRS’ cryptocurrency tax guidance from October 9, 2019 you will have ordinary income equal to the fair market value of a cryptocurrency received from a hard fork. This is provided you have have dominion and control over the cryptocurrency so that you can transfer, sell, exchange, or otherwise dispose of the new cryptocurrency.
If the hard fork cryptocurrency is subsequently sold or exchanged, the amount realized on the day of the sale or exchange is 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.
Hard Fork Taxation Example