Hi all. I am using TaxAct this year to file my taxes and have a question regarding Airdrops and what to input for “Other Income” on TaxAct.
In 2023 I received an ARB airdrop, and a month later sold/traded it to USDC. When I received the 1,750 ARB airdrop, it was valued at $1.42, which is a cost basis of about $2,485, which is what Koinly is showing as Income and what I apparently need to put in for “Other Income” on TaxAct. A month later it was valued at $1.18, and I traded 1,741 ARB to USDC equaling about $2,055; on Koinly it shows I have a -$413.36 gain because of the cost basis difference. In the CSV file I downloaded from Koinly, it put the $2,055 in the Sales Proceeds, but should it only be $413.36 as a gain?
I feel like putting the $2,485 in the “Other Income” is not correct and that it should actually be $413.36?
In this video at about 7:55, Nelly is talking about airdrops and needing to report them in the “Other Income” section.Does Koinly not factor in airdrops into gains and losses?
Thanks!