Tax
Nov. 16, 2017
Do cryptocurrency exchanges qualify for tax relief?
Since the IRS says cryptocurrency is property not currency, swaps should qualify as a "like-kind exchange," right?
Robert W. Wood
Managing Partner
Wood LLP
333 Sacramento St
San Francisco , California 94111-3601
Phone: (415) 834-0113
Fax: (415) 789-4540
Email: wood@WoodLLP.com
Univ of Chicago Law School
Wood is a tax lawyer at Wood LLP, and often advises lawyers and litigants about tax issues.
Broadly stated, a 1031 exchange (also called a "like-kind exchange," or a Starker) is a swap of one business or investment asset for another. Under the tax code, most swaps are taxable as sales. In fact, the IRS has actively gone after the barter community, trying to tax goods and services that are exchanged.
So, Section 1031 is an exception to the rule that swaps are generally fully taxable. If you can ma...
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