Forbes: Recent IRS Memorandum Reaffirms Bitcoin, Ether & Litecoin Exchanges Are Not Like-Kind (June 18, 2021)

Forbes has published an article, “Recent IRS Memorandum Reaffirms Bitcoin, Ether & Litecoin Exchanges Are Not Like-Kind”, which discusses laws regarding the deference of capital tax gains in relation to cryptocurrency and trade. The article begins as follows:

Tax law prior to January 1, 2018 allowed you to defer capital gains taxes when you exchange one property with another similar property (also known as a Like-Kind exchange). Relying on this tax law and the murky crypto tax guidance that existed before 2018, some cryptocurrency holders applied like-kind exchange treatment to crypto-to-crypto trades and paid no taxes on gains. A new IRS memorandum released today reaffirms that transactions between bitcoin, ether & litecoin are not eligible for the like-kind of exchange treatment.

Click here to see the full article: “Recent IRS Memorandum Reaffirms Bitcoin, Ether & Litecoin Exchanges Are Not Like-Kind”

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

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