Ripple (XRPUSD)

[Molonlabe461]

You’ve probably already read some about this but I have the same concerns as you. From what I was reading last night and this morning I think the SOLO airdrop falls under the ordinary hardfork airdrop, this site has decent info about that and tax info for defi, wrapping tokens, earnings, And token payouts also.

So unless the solo AirDrop is kind of a hybrid between the defi taxable events, and the hard fork taxable events then it looks kind of risky for me, I don’t know? I’m not currently informed enough about solo right now to make that determination.

If the solo drop falls under the regular hard fork rules that sucks, because it will be taxed as ordinary income and there’s no way to create a loss out of that if we’re given it and take possession and then price drops. We will owe tax at whatever it was worth at the moment we took possession of it in our accounts.

With the XRP I hold at the current price mark for SOLO that’s $40,000 in regular income that I would owe tax on, which also pushes me into a new tax bracket.

Not sure I can afford to come up with the taxes I will owe on $40,000, especially if everyone dumps their airdropped SOLO tokens and the price tanks? Such BS should be taxed as ordinary capital gains. so then I have a cost basis of $40,000 but will only be taxed capital gains on gains since you can’t take a loss on $40,000 of ordinary income. At least that’s how I understand it?

Freaking greedy IRS jumping the gun making laws before they even know how this
works. So frustrating.

Unless there is a loophole or I participate and then sell it immediately, regrettably dumping SOLO myself to make sure I have enough money to cover the tax, then it may be too risky for me to participate.

https://tokentax.co/blog/how-crypto-hard-forks-and-airdrops-are-taxed/

I really want to participate though, Just don’t want to screw myself!