Are airdrops taxable?

Are Airdrops Taxable?

Airdropped tokens are generally treated as income or as an asset you received. They may be taxable when you receive them (at fair market value) or when you sell them. The 30% VDA rate may apply. Keep records of the airdrop date and the token's value at that time. When you sell, your gain may be sale value minus value at receipt. The exact treatment can depend on the facts and future guidance. Report airdrops and their disposal in your return; consult a tax advisor if needed.