An airdrop is an acquisition of crypto assets, generally to promote the awareness/use of a new asset. For a more detailed definition of airdrops, click here.
Transactions that are identified as an airdrop will:
Create an income event at Fair Market Value (FMV) at the time of the airdrop
Create an acquisition event with an FMV cost basis at the time of the airdrop
To mark a transfer as an airdrop, select Airdrop (Income & Acquisition) from the "Treatment" column on the "Sub Ledger" screen.
For more information, please review the IRS guideline on addressing airdrops and cryptocurrency.
NOTE: Lukka does not provide tax advice. The statements above are general in nature and do not address how the application of the tax rules can vary based on a taxpayer’s actual facts. Please consult a tax professional on how the tax rules apply to your specific facts.