SumoPowerful
Thu Aug 29 2024
|
7 answers
1554
Can a crypto-to-crypto trade be treated as a like-kind exchange?
Good day, I have a question regarding cryptocurrency transactions. In the realm of finance, we often encounter the concept of a like-kind exchange, where assets of similar nature are swapped without triggering taxable events. Now, with the increasing popularity of cryptocurrency, I'm wondering if a trade between two different cryptocurrencies, let's say Bitcoin for Ethereum, could potentially be considered as a like-kind exchange under certain circumstances? How would tax authorities view such a transaction, and are there any legal precedents or guidelines that could shed some light on this matter? Thank you for your insights.
