The IRS deems cryptocurrency to be property. The SEC would likely identify some ico tokens to be securities
The following are not able to be used in a Section 1031 "like kind" exchange
Inventory or stock in trade
Stocks, bonds, or notes
Other securities or debt
Partnership interests
Certificates of trust
But, bitcoin, litecoin, ethereum, are clearly not securities, but rather digital assets that provide for a participation right in a particular economy or market
Thus, could one defer speculative bitcoin trading gains in a Section 1031 exchange?
*maybe* is my thought, but perhaps a tax expert can weigh in: https://youtu.be/D6Crr-Ov2Cs
**not tax advice, of course
The following are not able to be used in a Section 1031 "like kind" exchange
Inventory or stock in trade
Stocks, bonds, or notes
Other securities or debt
Partnership interests
Certificates of trust
But, bitcoin, litecoin, ethereum, are clearly not securities, but rather digital assets that provide for a participation right in a particular economy or market
Thus, could one defer speculative bitcoin trading gains in a Section 1031 exchange?
*maybe* is my thought, but perhaps a tax expert can weigh in: https://youtu.be/D6Crr-Ov2Cs
**not tax advice, of course
From what I've been told was that you could liken cryptocurrencies like gold. You can't do a 1031 exchange for gold or other precious metals, and can't do it for cryptos. Of course I'm not a tax lawyer and am still wading through that quagmire of legal red tape of the government not knowing what to classify cryptos as and trying to classify it as all. It would be nice if the U.S. government actually figures out what to classify cryptos as and keep it there.