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.

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