In what way exactly?
Discussion
Gotta move to an exchange to sell, assumedly. Hard to dump forks p2p in large chunks because of illicit KYC
Im more concerned by the IRS considering the new coins to be an income event that require a dump sale because there's no other way to pay the taxes before the price discovery causes one fork to go close to zero rapidly
you always have the option to hodl.
Not if the new timechain coins are an income event, e.g., let's say you have 1 btc presently and there is a new fork the presumptive initial price of both forks will be equivalent which means the new fork will be considered to be an income event equal to 1 newbtc so if its 95k, you just "earned" 95k and will have to pay income taxes on that new coin requiring you to sell it immediately before one of the forks starts to go toward zero or risk being unable to sell to cover your income event. This is separate and apart from realize or unrealized gains, I suppose if it goes way down the realized loss might offset the tax consequences of the original income event. Im not a tax lawyer but its something Ive been thinking about.
Ooo. Interesting. Was this the case with the Bcash fork?
I actually don't know but here is my source (look at Q23-25) https://www.irs.gov/individuals/international-taxpayers/frequently-asked-questions-on-virtual-currency-transactions
When the chain splits you will get coins on both. Most folks want to dump the inferior chain ASAP and are likely to do so via KyC exchanges. When they do the exchange can associate the UTXOs.