Crypto Airdrop Tax Guide for Free Token Income (2026)
Report crypto airdrop tax: free token income, fair market value, receipt timing, and promotional cryptocurrency taxation.
Summary
Airdrops create taxable income. This guide explains FMV at receipt, income recognition, and promotional token reporting.
Key Steps
- 1Understand airdrop: free tokens distributed to wallet addresses.
- 2Report as income: airdrop tokens taxable at fair market value when received.
- 3Determine FMV: value when tokens become accessible and tradeable.
- 4Track cost basis: FMV at receipt becomes basis for future sale.
- 5Document all airdrops: date, platform, amount, market value at receipt.