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It's not that clear-cut. The IRS does specifically state that 1031 exchanges don't apply to stocks or "securities of indebtedness" (bonds), or to personal prop
by panarky 9y ago
It's not that clear-cut.
The IRS does specifically state that 1031 exchanges don't apply to stocks or "securities of indebtedness" (bonds), or to personal property.
1031s are for property held for use in a business or for investment.
It's not just real estate. People use 1031 exchanges to defer taxes on artwork, collectibles, boats and commodities.
BTC and ETH aren't stocks and they're not "securities of indebtedness". The matter isn't settled.
Here's the IRS's statement on what's excluded: https://www.irs.gov/newsroom/like-kind-exchanges-under-irc-code-section-1031 https://www.irs.gov/newsroom/like-kind-exchanges-under-irc-c...