Crypto Tax Basics: A 101 for Beginners

Another scenario that causes lots of confusion and pain is airdrops. Airdrops are typically taxed at fair market value of receipt. So if you were airdropped 10 BTC for a total price of $100,000 on November 10, your taxable income would go up by that amount immediately. Even if you sold those 10 BTC the next day for $90,000, you would still report income of $100,000 and a capital loss of $10,000. Since the IRS only allows you to deduct $3,000 of capital losses every year, in this scenario, you can roll over the remaining $7,000 in future years.