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What? The IRS gave guidance for this in 2014! It's right there under item Q-6 in Notice 2014-21. https://www.irs.gov/pub/irs-drop/n-14-21.pdf https://www.irs.go
by 1053r 9y ago
What? The IRS gave guidance for this in 2014! It's right there under item Q-6 in Notice 2014-21. https://www.irs.gov/pub/irs-drop/n-14-21.pdf https://www.irs.gov/pub/irs-drop/n-14-21.pdf
"Q-6: Does a taxpayer have gain or loss upon an exchange of virtual currency for
other property?"
"A-6: Yes." (quote continues, but there you go).
I have no idea how folks came to the conclusion that 1031 swaps were ever acceptable, but it's always been clear that the IRS did not think they were.
TL;DR Don't get your tax advice from Reddit. (Or random commenters on hacker news, for that matter.)
- gojomo 9y agoThat would have been so much clearer if they'd just written "…upon an exchange of virtual currency for other property, including other virtual currency." But they didn't, and thus the 'other' can easily be read as "other kind of property" – leaving 'virtual currency' to 'virtual currency' unaddressed.