How to account for hard forked coins with Catax?

Sachin Mishra

Last Update vor 10 Monaten

In order to properly recognize income as well as to establish the correct cost basis for coins received in a hard fork, it’s important that you enter in the hard forked coins in Catax cryptocurrency tax software.

- Go to the Catax Accounts. Click on Add Transaction screen. Set the transaction type to “income” and in the buy amount and buy currency columns, enter in the crypto that you received in the hard fork.

- For the date, enter the date when you came into control of the hard forked asset.

- For exchange, you can enter whatever helps you remember the transaction, e.g. “BCH Fork.”

After adding in any income transactions, you’ll see the total income amount for the tax year reflected on your dashboard. Any sales of that hard-forked asset will account for the proper cost basis.

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