Technology,
Tax
Jun. 30, 2021
IRS says more cryptocurrency transactions are taxable
On June 18, the IRS released Chief Counsel Advice 202124008, asking and answering a question: Does an exchange of (i) Bitcoin for Ether, (ii) Bitcoin for Litecoin, or (iii) Ether for Litecoin qualify as a like-kind exchange under Section 1031 of the tax code?
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.
If you swapped one kind of crypto for another before Jan. 1, 2018, was it tax free? You didn't get cash, so there shouldn't be any income or gain for the IRS to tax, right? As the IRS mines all the crypto data it is getting and audits you, will they allow it? The tax law was changed by statute to say that starting Jan. 1, 2018, crypto trades are taxable. By implication, doesn't that mean they were tax-free in 2017 and before?
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