Navigating IRS Revenue Ruling 2019-24: Ordinary Income and Cost Basis for Crypto Airdrops and Hard Forks

This episode examines the tax implications of receiving digital assets through airdrops and hard forks, focusing on the critical timing of dominion and control and the determination of fair market value under IRS Revenue Ruling 2019-24.\n- How does the IRS define dominion and control for newly received tokens?\n- Why is airdrop income classified as ordinary income rather than capital gains?\n- What specific records must be kept to document a hard fork event?\n- When does the holding period for airdropped assets officially begin?\n- How does Revenue Ruling 2019-24 impact current tax reporting?\n- What happens if a hard fork does not result in a new asset distribution?\n- How should promotional distributions be valued for tax purposes?\n- What are the risks of ignoring small-value airdrops on a tax return?\n\nDigital Asset Planning is hosted by Ran Chen, EA, CFP®. He is a seasoned financial professional specializing in complex cases for high-net-worth individuals and families with international backgrounds. Unlike standard crypto commentary, this podcast focuses on the intersection of digital assets and real-world financial planning—including tax strategy, estate and legacy planning, cross-border jurisdictional issues, and risk management. We help serious asset holders move beyond speculation toward long-term responsibility and protection. For more resources, visit https://digital-asset-planning.com.