Fork: what it means for crypto tax
A fork is a split in a blockchain that can leave you holding a new asset. The tax treatment of coins from a hard fork varies, some jurisdictions treat them as income on receipt, others assign a zero cost basis until disposal.
General information, not tax advice. Crypto tax rules differ by country and change over time, verify against your country's guidance or a qualified advisor.
An example
A hard fork drops new coins into your wallet; whether that is income now or simply a zero-basis holding depends on your country.
Why it matters for your tax
Because forked coins arrive without a purchase, they are easy to miss, and their treatment is one of the more jurisdiction-specific areas of crypto tax.
CryptaTax handles this automatically across your wallets and exchanges, so the concept is applied consistently without you tracking it by hand. Try the crypto tax calculator →
Related terms
See the full crypto tax glossary for every term, or the crypto tax guides for how they fit together.
FAQ
A fork is a split in a blockchain that can leave you holding a new asset. The tax treatment of coins from a hard fork varies, some jurisdictions treat them as income on receipt, others assign a zero cost basis until disposal.
See the crypto tax glossary for related terms, or the crypto tax guides for worked examples. Rules differ by country, so check your country's rules.