Oh yes it does, according to the IRS: > Q16. Will I recognize a gain or loss if I exchange my virtual currency for other property? > A16. Yes. If you excha

Oh yes it does, according to the IRS: > Q16. Will I recognize a gain or loss if I exchange my virtual currency for other property? > A16. Yes. If you exchange virtual currency held as a capital asset for other property, including for goods or for another virtual currency, you will recognize a capital gain or loss. For more information on capital gains and capital losses, see Publication 544, Sales and Other Dispositions of Assets. Source: https://www.irs.gov/individuals/international-taxpayers/frequently-asked-questions-on-virtual-currency-transactions https://www.irs.gov/individuals/international-taxpayers/freq...