[krrrh]

It isn’t 100% clear because there hasn’t been an explicit ruling from the IRS but it’s very unlikely that crypto to crypto would be considered a 1031 like-kind trade. They didn’t even allow trades between precious metals or gold coins with different grades of gold to qualify.

I think the bigger issue for US taxpayers is that the IRS doesn’t allow individuals to carryback losses. From what I’ve read, corporations in the US and individual taxpayers in Canada can carry back losses for up to 3 years. The way the crypto market exploded up until late Dec, and then has crashed hard since then could leave some traders with a big tax liability from 2017 that they could end up having to work off for years. The good news is that they might be able to carry 2018’s losses forward to offset future capital gains, but that could be cold comfort to the kids that lost it all on leverage when the bubble popped.

IANAA IANAL, seek professional advice.

[jmalicki]

As of 2018 it's now statute that it's not a like-kind trade, for 2017 it's still uncertain.

[krrrh]

Yes, I should have stated that more clearly. I’d also clarify that for 2009-2017 it’s still uncertain.

I still wouldn’t hold my breath.