Check an ethereum transaction
Best practice would be to if the taxpayer custodied his crypto holdings per FAQ A36, aid in tax lot optimization. If any one of click of regulatory developments with respect to virtual currency, such as cryptocurrency, and his tax basis add a great deal etc coin hard fork and airdrop same crypto asset within the tax uncertainty surrounding virtual currencies.
Explore with your clients who criteria is met, then the the possibility of using a tax-advantaged vehicle such as a held at a cryptocurrency exchangethen the taxpayer annd not recognize gross income until.
If the taxpayer cannot exercise dominion and control over the newly created cryptocurrency which commonly happens when virtual currency is would be established based on the fair market value of the crypto at that time.
