Finally in October 2019, the IRS issued Rev. Rul 2019-24 dealing with hard forks and air drops. A hard fork is when there is a protocol change to crypto currency analogues to a stock split. There is not a new ledger of bitcoin cash which resulted when Bitcoin split between the original Bitcoin and a new ledger called Bitcoin cash. A hard fork is a split in the Blockchain, e.g. you get a differen currency for your Bitcoin. Do you have constructive receipt when you get this? Depends on whether you can spend and so forth.
FAQs came with the 2019 ruling that answered many questions but many remain (e.g. was sale and 1031 remain open).
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