And thus according to the IRS, those who automatically received this diabolical free airdrop owe income tax at the market value on the free Core tokens airdrop at the time of the said timestamp. The market value will be whatever nosebleed BTC price before Craig starts his posited (and warned) SegWit donations attack
Upon receipt of any forked coin the forked coin is initially valued at zero. You assume that you have been gifted a zero value token. When you finally sell or exchange that token for something of value you then compare the gifted value (zero) with the value of what you receive upon exchange/sale and you then pay capital gains at that time.
It is akin to receiving a baseball card of little to no value as a gift. But then after 10 years that baseball card is now worth $1 million. You must now pay capital gains on $1 million worth of gains. If you hold that baseball card until your dying days, even though it has a lot of value, you would never need to pay any tax on it.
This can happen when coins hit a high water mark of price discovery right after the airdrop event and the heavy selling could sink the price to a level from which is never recovers, he said.
The IRS says the fair market value at the time of the fork event as recorded on the blockchain:Q23. How do I calculate my income from cryptocurrency I received following a hard fork?
A23. When you receive cryptocurrency from an airdrop following a hard fork, you will have ordinary income equal to the fair market value of the new cryptocurrency when it is received, which is when the transaction is recorded on the distributed ledger, provided you have dominion and control over the cryptocurrency so that you can transfer, sell, exchange, or otherwise dispose of the cryptocurrency.
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A24. If you receive cryptocurrency from an airdrop following a hard fork, your basis in that cryptocurrency is equal to [
] the fair market value of the cryptocurrency when you received it. You have received the cryptocurrency when you can transfer, sell, exchange, or otherwise dispose of it, which is generally the date and time the airdrop is recorded on the distributed ledger.
When a taxpayer receives property that is not purchased, unless otherwise provided in the Code, the taxpayers basis in the property received is determined by reference to the amount included in gross income, which is the fair
market value of the property when the property is received.
The IRS says that fair market value is the published price on indices aka basket of exchange prices:A26. If you receive cryptocurrency in a peer-to-peer transaction or some other transaction not facilitated by a cryptocurrency exchange, the fair market value of the cryptocurrency is determined as of the date and time the transaction is recorded on the distributed ledger, or would have been recorded on the ledger if it had been an on-chain transaction. The IRS will accept as evidence of fair market value the value as determined by a cryptocurrency or blockchain explorer that analyzes worldwide indices of a cryptocurrency and calculates the value of the cryptocurrency at an exact date and time. If you do not use an explorer value, you must establish that the value you used is an accurate representation of the cryptocurrencys fair market value.
The IRS says that if theres no exchange markets for the token, then the reasonable fair market value applies:Q27. I received cryptocurrency that does not have a published value in exchange for property or services. How do I determine the cryptocurrencys fair market value?
A27. When you receive cryptocurrency in exchange for property or services, and that cryptocurrency is not traded on any cryptocurrency exchange and does not have a published value, then the fair market value of the cryptocurrency received is equal to the fair market value of the property or services exchanged for the cryptocurrency when the transaction occurs.
There has been no major forked airdrop token that was trading at $0 the instant it appeared on an exchange. So the IRS will never agree that the fair market value is $0. When BCH forked off from Bitcoin, the value of BCH was the first exchange prices recorded for the token.
When Core forks off from Bitcoin, then since Bitcoin Core is currently the official Bitcoin, then the exchange price of BTC will apply at the moment of the fork. This is likely why the powers-that-be which created Bitcoin and this diabolical 666 plan for it, also funded Blockstream. You go research the banksters who provided the funding for Blockstream aka Core. Educate yourself son.