Crypto ICO Token Tax Guide for Initial Coin Offering (2026)
Understand ICO token taxes: initial coin offering taxation, token purchase, ICO investment, and token tax treatment.
Summary
ICO tokens have specific tax treatment. This guide explains purchase taxation, holding, and sale rules.
Key Steps
- 1ICO purchase: buying tokens is like any crypto purchase, establish cost basis.
- 2Token type matters: utility tokens vs security tokens may have different treatment.
- 3Holding period: same capital gains rules apply based on holding duration.
- 4Airdrops from ICOs: additional tokens received may be taxable as income.
- 5Failed ICOs: loss deduction available if tokens become worthless.