Discussed in other thread but felt needed thread of its own. https://www.forbes.com/sites/robert...031-exchanges-of-cryptocurrency/#1d011dabf58f Whether you can make a tax-free swap of cryptocurrency is controversial. A 1031 exchange is a swap of one business or investment asset for another. Under the tax code, most swaps are taxable as sales. That's why the IRS says bartering is taxable to both sides, whether for goods or services. Section 1031 is an exception to the rule that swaps are generally fully taxable. If you can manage to come within 1031, you can change the formof your investment without (as the IRS sees it) cashing out or recognizing income. But can you swap one cryptocurrency for another, or for other property?
Can you swap one asset for another w/o cashing it out? If the answer is mostly negative, then Section 1031 makes more sense. B/C with cryptocurrency it's easier to do & the Section 1031 does not make much sense here.
Sure it does.. If the IRS has ruled it an asset, then asset rules should apply, including like for like exchanging.
Eventually... Point is by doing like for like, you don't incur capital gains anytime you swap a coin.