ETax847 Posted December 28, 2017 Report Posted December 28, 2017 "The IRS says cryptocurrency is property not currency, so you might think you could qualify. But whether 1031 applies to cryptocurrency is debatable." Does anyone have a definitive answer on the treatment of exchanging cryptocurrency for 2017? Quote
BulldogTom Posted December 28, 2017 Report Posted December 28, 2017 What would be the like kind property? Another cryptocurrency? Tom Modesto, CA Quote
ETax847 Posted December 28, 2017 Author Report Posted December 28, 2017 Yes, if you exchange bitcoin for another cryptocurrency. I've read mixed things on the treatment of taking such action and was looking for some clarity. Quote
BulldogTom Posted December 28, 2017 Report Posted December 28, 2017 If the IRS says it is "property", that clears one hurdle. It must be held for investment purposes, so if it was ever used as a means of payment, especially for something personal, you may have a hard time clearing that hurdle. Finally, it must not be an "other security". Not sure how the IRS defines that term, but I think that would be the hardest hurdle to clear. Because it is being traded like a stock or a commodity, I think this is where the analysis would fail. You can't exchange gold for silver or diamonds. I would think this is the reasoning the IRS would apply. I think I would agree with them. Just my humble opinion. Tom Modesto, CA 1 Quote
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