Marvin A. Kirsner (Greenberg Traurig LLP): IRS Says No Tax-Free Exchange Treatment for Swaps of Bitcoin, Ether, and Litecoin (June 22, 2021)

Marvin A. Kirsner, of Greenberg Traurig LLP, has made available for download his article, “IRS Says No Tax-Free Exchange Treatment for Swaps of Bitcoin, Ether, and Litecoin”, published in Greenberg Traurig Tax. The article begins as follows:

The IRS has published guidance stating that pre-2018 swaps among Bitcoin, Ether, and Litecoin are not eligible for 1031 tax-free exchange treatment. This means that investors who made swaps among these three cryptocurrencies before 2018 are liable for income tax on the gains realized. This guidance only applies to swaps before 2018, because the Tax Cuts and Jobs Act of 2017 eliminated § 1031 tax-free exchange treatment for personal property beginning after 2017, so that all cryptocurrency exchanges beginning in 2018 would be subject to income tax.

Click here to see the full article: “IRS Says No Tax-Free Exchange Treatment for Swaps of Bitcoin, Ether, and Litecoin”

Posted by Marin Larkin, Associate Editor, Wealth Strategies Journal.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s