2020 Tax Report Issue Canada

[rcvalderrama]

I got an Airdrop last year in the fall. The value of the airdrop was $3,168.25 dollars cad. I put this into my koinly report and it says that i received this as income. To my understanding airdrops do not create taxation events until the day you sell them. I did not sell any in 2020.

My accountant is asking about this. If it says income in the report he says I would get taxed on this even though I didn’t sell. Can I get this fixed on my report?. Or am I wrong and do Airdrops create a taxation event?

[Tyson_Cooper]

Hi, I am also in Canada and was having the same issue with airdrops. To fix it, I went into the transaction view and on the relevant airdrop lines, click on the 3 vertical dots on the right side of the transaction and choose the remove the “airdrop” tag. This then just makes it as if you you aquired it for zero cost and will only trigger the taxable event when you do eventually sell it or swap it for something else. At that point it will presumably be a capital transaction vs income, so better yet from a tax perspective. Just generate the report again after to verify the income has disappeared.

[rcvalderrama]

Thank you I appreciate the help.

[krakatau]

Hi folks, have you confirmed this, that airdrops are taxable only when you sell the amount you’ve received? If so, what’s the point of the airdrop tag in Koinly? Could it be that maybe airdrops are taxed differently in other countries?