How Is a Hard Fork or Airdrop Generally Treated for Tax Purposes?

The general tax treatment for a hard fork or airdrop is that the received coins are considered ordinary income at their fair market value on the date and time the taxpayer gains dominion and control over them. There is no capital gain or loss event at the time of receipt.

A capital gain or loss will only be realized later when the taxpayer sells or disposes of the newly acquired coins.