Plain English
In the US, an airdrop is taxable as ordinary income at the fair market value on the date you gain dominion and control of the tokens (Rev. Rul. 2019-24). That value becomes your basis for future capital-gain/loss calculation. Hard-fork tokens get the same general treatment.
How it actually works
Dominion-and-control typically means the airdrop is in your wallet and freely transferable. If the airdrop sits in a claim contract you have not yet executed, the timing is debated — many practitioners apply receipt-on-claim. Once claimed, value flows to your income; subsequent sale is capital gain/loss.
What it means for you
For HNW recipients of large airdrops (ARB, OP, JTO, ETHFI), the ordinary-income hit can be significant in the year of receipt — even if you have not sold. Plan to liquidate enough at receipt to cover the tax, especially for volatile tokens that may decline before tax filing. The mistake to avoid: holding the full airdrop through a bear market and still owing tax on the higher value at receipt.
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Educational content only. Not investment, tax, or legal advice.