How does the concept of like-kind exchange apply to cryptocurrency trading?

1 answers

• Dec 16, 2021 · 3 years ago
  At BYDFi, we believe that the concept of like-kind exchange can be applied to cryptocurrency trading. By exchanging one cryptocurrency for another similar cryptocurrency, traders can potentially defer their capital gains taxes. However, it's important to consult with a tax professional or accountant to ensure compliance with the relevant tax laws and regulations. Additionally, it's worth noting that the IRS has not provided clear guidance on whether like-kind exchange applies to cryptocurrencies, so there is some uncertainty surrounding its application in the cryptocurrency trading space.
  595298