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.
Wealth Strategies Journal 