How crypto hard forks are taxed
When a blockchain splits and you receive a new coin (think Bitcoin Cash from Bitcoin), that new coin can be taxable income — depending on whether you actually receive and control it, and on your country. This guide covers the essentials and how CryptaTax handles it.
General information, not tax advice. Fork rules differ by country — verify against your country's guidance or a qualified tax advisor.
What a hard fork is
A hard fork is a permanent split in a blockchain that creates a separate chain — and often a new coin distributed to existing holders. The tax question is whether receiving that new coin is income.
The general rule
In the United States, when you receive new coins from a hard fork and gain dominion and control over them (typically when they're credited to you and you can transfer or sell them), you have ordinary income equal to their fair market value at that time. That value becomes your cost basis, so a later sale produces a capital gain or loss.
A key point: if you don't actually receive or control the new coins (for example, your exchange doesn't support them), there's generally no income until you do. US crypto tax →
Other countries vary — some don't treat the receipt as income and instead tax only the eventual disposal, sometimes from a low or zero cost basis. Check your country guide.
Forks vs airdrops
Forks and airdrops are closely related and often handled the same way — both involve receiving tokens you didn't buy. Airdrop tax →
How CryptaTax handles hard forks
- Identifies forked coins received in your wallets and exchange accounts
- Values them at their fair market value on receipt (as income where your country requires)
- Tracks the cost basis so your later disposal is calculated correctly
Income report → · Import your exchanges & wallets →
FAQ
In the US, yes. New coins are ordinary income at their value when you gain control of them, then a capital gain or loss when you sell. Some countries tax only the later disposal.
Where it is income, generally when you receive and can control the new coins, valued at that moment. If you never receive or control them, there is usually no income yet.
Where you reported income on receipt, that value is your cost basis. A later sale is a capital gain or loss versus it.
Often, yes. Both involve receiving tokens you did not buy and are frequently treated alike.