Bitcoin Cash Received From Hard Fork Is Taxable, IRS Says

Law360 (April 9, 2021, 5:16 PM EDT) -- Cryptocurrency received from a so-called hard fork that altered Bitcoin's underlying ledger to result in a split that generated bitcoin cash is considered taxable gross income, the IRS said in a memorandum from the Office of Chief Counsel released Friday.

The memorandum, which the Internal Revenue Service said cannot be cited as precedent, responded to a request about the tax consequences for someone who received bitcoin cash as a result of the Bitcoin hard fork in August 2017. The question focused on whether the receipt of bitcoin cash after the hard fork was considered taxable income under Section 61 of the...

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