I thought in the US the law is, that crypto currencies are not regarded as the "same of a kind". This would mean, as soon as you do any exchange to another crypto currency (independant whether it is into Tether or any other crypto currency) you would need to declare your gains. In general I highly recommend to consult a tax expert related to this topic.
Yes, previously Section 1031 allowed like-kind exchanges in a variety of asset types (though it was somewhat ambiguous about what assets actually qualified for it, investments were generally considered to be among the permissible personal property that was eligible).
However, the Tax Cuts and Jobs Act of 2017 amended that section of the Code and repealed its applicability on anything other than real property (i.e. land, buildings, etc.)
Under this reading of the Code, each individual transaction is evaluated for a capital gain. This is why it's important to work with a tax professional to determine the best cost basis method for each transaction, this will minimize your taxable gains.
We need cryptocurrency to have legal status as currency. That would make things so much easier. Tokens are a different story (with its own set of complexities), but true cryptocurrency should be treated the same as Yen, Euro, or Dollars, etc.
Best,
Ben
[Not tax or any other kind of advice. Ask your doctor if cryptocurrency is right for you. I am not your accountant, go talk to him or her.]
