Proper tax treatment of airdrop gains hinges on understanding your region’s specific tax code. Often, airdropped tokens are deemed income when received, with their market value at that time forming the basis for taxation. This value serves as the cost basis for any later sale, which may lead to capital gains or losses. Keeping meticulous records—including transaction dates, token valuations, and fees—is essential. Leveraging crypto tax tools can streamline this process, and seeking advice from a tax advisor who specializes in cryptocurrencies is strongly recommended. This proactive approach ensures accurate reporting and compliance while helping you manage your overall tax liability effectively.