What if I never sold my airdrop tokens?

You still owe ordinary income tax on the FMV at the time you received them, even if you haven’t sold. The income tax is triggered by receipt, not sale. Capital gains tax only applies when you later dispose of the tokens.

What if the airdrop value went to zero?

You still owe ordinary income tax on the FMV at receipt. If you later sell at a loss, the loss is a capital loss that can offset capital gains (up to $3,000 against ordinary income per year). The income tax from receipt cannot be reversed.

Do I need to report airdrops even if they’re worth only a few dollars?

Technically yes — there is no minimum threshold for reporting income. In practice, many taxpayers only report material amounts, but this is a risk-based decision. When in doubt, consult a tax professional.

Does Revenue Ruling 2023-14 apply to airdrops or just staking?

Rev. Rul. 2023-14 directly addressed staking rewards only. For airdrops, the governing authority is IRS Notice 2014-21 (crypto as property) and Rev. Rul. 2019-24 (hard-fork airdrops). Most tax professionals apply the same "dominion and control" doctrine to all airdrops.

What if the airdrop had no market value when I received it?

If the FMV at receipt is genuinely $0 — no established market, no trading activity — many tax professionals take the position that no income is recognized at receipt. Your cost basis would then be $0, and any future sale proceeds become fully taxable gain. The IRS has not issued explicit guidance on $0-FMV airdrops; consult a tax professional for your situation.

When exactly does the tax event occur — deposit date or claim date?

It depends on delivery method. If tokens were automatically deposited to your wallet, the tax event is the deposit date. If you had to actively claim or opt in to receive them, the IRS "dominion and control" doctrine may push the event to the claim date. Document both dates and the FMV on each.