Bitcoin Cash From Hard Fork Is Taxable Income - IRS

[LeziT]

Bitcoin cash (BCH), received after the Bitcoin (BTC) hard fork in 2017, constitutes taxable gross income, according to a memorandum released by the US Internal Revenue Service (IRS).

The IRS claims the document, dated March 22, cannot be cited as precedent, and it was drafted in response to a request for information related to an individual taxpayer who owned BTC and received BCH following the hard fork in August 2017, reported Law360.com.

The IRS was asked whether the receipt of BCH after the hard fork could be considered as taxable income in compliance with Section 61 of the Internal Revenue Code. As stated by the IRS, the provision defines gross income as income derived from whatever source, and including, but not limited to, “compensation for services, including fees, commissions, fringe benefits, and similar items.”

“The taxpayer had an accession to wealth under Section 61,” according to the report. “The date of receipt and fair market value to be included in income will be dependent on when the taxpayer obtained dominion and control over the bitcoin cash.”

Bitcoin Cash From Hard Fork Is Taxable Income - IRS
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