Is Bitcoin CASH regulated in any way?

[Sumarokov]

Because I hold Bitcoin, I was given about the same amount in Bitcoin Cash at one point.

I was also given some Stellar (XLM) for free.

Does anyone know if this is regulated in any way regarding taxation? My Bitcoin emerged out of fiat. But this came out of nothing!

[Lucius]

Interesting question, so even though it is more or less known that the tax is paid only in the case when the owner sells a certain cryptocurrency - how to treat something that the user receives literally as a gift (because of the fork), and then just hold it? Personally, I have never been interested in this issue because fork coins are not something I see any value in. Maybe those who have been in a situation to sell fork coins can say a little more about it.

For anyone interested in a little more detail on this issue, here are a few thoughts :

A taxpayer controlling the credentials to bitcoin prior to either chain-split will control a corresponding number of bitcoin cash or bitcoin gold after the chain-split. Thus, for example, a taxpayer having 10 bitcoin prior to the Bitcoin Cash chain-split will have 10 bitcoin cash, along with his 10 bitcoin, after the chain-split. No payment of money or exchange of property occurs, nor does the taxpayer give up any rights. Taxable income is realized if the owner of pre-split bitcoin exercises dominion and control over the corresponding chain-split coins; and The income realized will be equal to the value of the chain-split coins at that time.The character of income realized, other tax considerations (including applicability of the tax on net investment income), and effects of more complex transactions will be discussed in the future.

[LeGaulois]

It depends on your country's tax system, it's not something universal and can be different than ours.

But I can tell you that in my country we're also taxed on the forks. These bastards are robbing every penny they can.
The value of the fork represents a capital gain, you're so taxed on this, like any capital gain. Let's say you got $10,000 from a fork you're taxed 30% ($3,000).


That's unfair to me, capital gains mean an investment has been done earlier and it's not really the case with a fork.
Soon if you find a banknote on the street you will have to pay a tax too

[Darker45]

Not from nothing in the strict sense. You invested in Bitcoin. Out of Bitcoin, there came Bitcoin Cash. Whether it was expected or not, it came from your Bitcoin investment. You wouldn't have gained it had you not invested in Bitcoin in the first place. So, in a way, it is a gain from your Bitcoin investment, an unexpected one at that. Therefore, I think it will have to be taxed also once you sell it. This is a just an opinion, though. I'm not a tax professional.  

And, of course, we don't necessarily share the same set of tax laws and regulations, as LeGaulois has pointed out. So the best answer to your question would definitely come from a professional accountant in your locality.

[dothebeats]

It surely varies from country to country, but from where I'm at it'll be considered as a direct result of the initial investment, ergo making it taxable since it still came from the initial investment that I placed my money on. You cannot consider it as a gift or anything on the same line as you wouldn't have gotten it had it not been for your ownership of bitcoin. Though perhaps other countries might be forgiving and lax about this, but I highly doubt that.

[Harlot]

What I am posting right now still has no clear answers since IRS for the US hasn't given a clear answer yet but based on what I have read in the past yes hard forked coins are taxable but the real question is what kind of tax will it be applied on? And the answer to that will always be dependent on the duration on how long you have held it, for people after the hard fork happened and they hold their Bitcoin Cash immediately they are subject to pure income tax while for people who have held it in a longer period they will be subject to capital gains tax as they have recognized their hard forked coins as an investment rather than some kind of income at the time they have received it, they cited a case related to this but it is about stocks and I think it has a precedent regarding this.

[davis196]

Because I hold Bitcoin, I was given about the same amount in Bitcoin Cash at one point.

I was also given some Stellar (XLM) for free.

Does anyone know if this is regulated in any way regarding taxation? My Bitcoin emerged out of fiat. But this came out of nothing!

Tax regulations cover all cryptocurrencies.It doesn't matter if its BTC,ETH,Stellar or Bitcoin cash.
The rules are the same for all coins.Coins,that were created after a hard/soft fork are no different than mined or bought coins(at least in the eyes of the tax agencies,that might consider forked coins to be a capital gain),so they are taxable as well.
In which country do you live OP?
You say that you were given Stellar for free.Maybe this can be considered as a donation and deducted from your taxes.I'm not an expert.Perhaps you should talk to a professional accountant.

[Sumarokov]

Thank you for the replies. Right now, I happen to be in Germany, where you do not pay tax if you have held your crypto for over a year.

However, in any case, I do not plan to turn it into fiat soon.

I have since sold my BCH for XBT anyway. I still have a tiny bit of Stellar. I have still not gone about acquiring the tiny amounts of Bitcoin Gold I would be entitled to.