How to add fork? (E.g. eth->etc)

I have a wallet that spanned the ETC fork in 7/20/2016

In CoinTracker, I added the wallet. Then I manually added a transaction for the “Fork” with the date (but no timestamp), the correct wallet selected, and the number of coins. I did not enter in any USD amounts.

Then I set all previous transactions to “ignore”.

The problem I am having is that there is no income or basis adjustment being recorded. How do I do that? Is there an automatic way to automatically get those values?

Hi @payton,

To clarify, you want to enter in the basis for the ETH you received at the fork right? On the manual receive fork transaction you created, you should be able to edit the basis to the value you desire. The income amount will be reflected under Forks on the 2016 tax center.

I was under the impression that I could make the argument that I maintained a position in ETH, and recieved ETC as income. ETH was created by a foundation and that foundation dictates what “ETH” is, and “ETC” was some rogue effort (even though it actually maintained the same software, and ETH changed the software). The fact that post-fork ETH mostly held a similar value to the pre-fork value adds support to the idea that this was the continuation of the original currency, and ETC was not.

Thoughts on this?

I was also hoping that CoinTracker could tell me a basis amount for the fork (airdrop?). These are the kinds of things that CoinTracker could be very good for, rather than having all of us try and figure it out ourselves. O(1) vs O(n), right?

Hi @payton,

Please see the comments inline below. As with everything on the forum, please keep in mind that this is meant as informational only, not as tax advice (you should speak with a tax advisor for specific tax advice).

I was under the impression that I could make the argument that I maintained a position in ETH, and recieved ETC as income. ETH was created by a foundation and that foundation dictates what “ETH” is, and “ETC” was some rogue effort (even though it actually maintained the same software, and ETH changed the software). The fact that post-fork ETH mostly held a similar value to the pre-fork value adds support to the idea that this was the continuation of the original currency, and ETC was not.

Thoughts on this?

>> I’ve never heard of this argument being made before, but ultimately it depends on the facts and circumstances. It’s likely a more aggressive position than the conservative position that the original chain that was unmodified is ETC. If you want to take this position, just make sure you have the evidence to support your argument and that you run it by your accountant. You won’t need to show this evidence at the time of filing, but you will need to prove your case if the IRS questions your treatment.

I was also hoping that CoinTracker could tell me a basis amount for the fork (airdrop?). These are the kinds of things that CoinTracker could be very good for, rather than having all of us try and figure it out ourselves. O(1) vs O(n), right?

>> Yes! We try to automatically do this whenever you have a receive transaction (e.g. airdrop or fork). If you aren’t seeing that happen, please let us know at feedback [at] cointracker.io with a screenshot of the transaction.

>>As with everything on the forum, please keep in mind that this is meant as informational only, not as tax advice (you should speak with a tax advisor for specific tax advice).

Do you offer tax advice at some price? That seems like a more lucrative business than what CoinTracker seems to be in its current form.

Where can I get solid, affordable tax advice?

>> I’ve never heard of this argument being made before, but ultimately it depends on the facts and circumstances. It’s likely a more aggressive position than the conservative position that the original chain that was unmodified is ETC.

I believe I’ve heard that Shehan thinks this more-aggressive stance is a decent. Maybe with different justifications. I don’t recall.

Hi @payton,

We can connect you with a crypto tax advisor if you complete this form. The above view was from Shehan. We’ll directly connect you with him or someone else depending on your responses on the form.