You might find this interesting:
https://steemit.com/money/@cryptotax/cryptocurrency-like-kind-exchanges-what-can-we-learn-from-gold
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You might find this interesting:
https://steemit.com/money/@cryptotax/cryptocurrency-like-kind-exchanges-what-can-we-learn-from-gold
I did brother.
Read it a few days ago, upvoted, and then posted link on Facebook. I had never seen a writer collect the gold coin rulings in one place, and I think you did a great job. Although I think the IRS is really splitting hairs on those gold exchanges, as you point out we have to remain aware that the Service might disallow the Crypto 1031 Exchanges using the same reasoning .
I commented somewhere else that I recall the 30-year veteran IRS agent at UCLA pointed out that the Service is looking at the bottom line of the exchange - "Deed for deed," or "Title for Title." He said this to explain why there were crazy examples of 1031 exchanges approved by the IRS.
The IRS will decide whether to split hairs with the cryptocurrencies, or follow the more general "Deed for deed" general rule. As representatives, with little IRS guidance, our job is to make the best case for the 1031 Exchanges, keeping in mind the different fates of the gold coins.
Thanks, appreciate it! I will have to look into this deed for deed concept!
I am thinking:
Blockchain code for blockchain code.
Matrix position for Matrix position.
Virtual fantasy for virtual fantasy.
Offspring of Satoshi Nakamoto for offspring of Satoshi Nakamoto.
Haha good point. For academic purposes, here is my counter: both gold and silver are offspring of the earth, but for 1031 not like-kind.
Right, but joking aside, here is where I am coming from.
I am a new Enrolled Agent who is studying for the Tax Court Exam. My job is to win the 1031 Exchange argument on Audit, in Appeals, and ultimately in Tax Court.
I am hoping that you and the Steemit community can help with reasoning that is pro like-kind exchange for cryptocurrencies.
We know the IRS opened the door by saying that virtual currencies are property, and that the new tax bill basically says no 1031 Exchanges for virtual currencies starting with tax year 2018.
We are only trying to win on 1031 Exchanges for tax years 2017 and earlier, but this is going to be a critical win. (The Service just pulled 14,000 Coinbase accounts.)
There are tax professionals posting that they are giving up on 1031s, partially because of the SEC thing.
Because I believe it may be a grave injustice for the IRS to disallow all 1031s for cryptos, I am going to stay on this.
@cryptotaxadvisor one thing to consider is how the blockchain governance models could be used to disallow 1031 exchanges based upon financial interest exclusions. Tokens which have Proof of Stake (POS ) and Delegated Proof of Stake (DPOS) could potentially be construed as financial interests. I think you may have a shot with Proof of Work (POW) coins, but POS and DPOS might be a problem.
Ouch LP. Since I don't understand what you just wrote, I think you just gave me a difficult homework assignment.
At the 101 Level, here is what I am thinking.
Coinbase has 11.7 million users. There you can only move between Bitcoin, Bitcoin Cash, Ethereum, and Litecoin. If EAs could successfully argue 1031 Exchanges between those four only, that would be a great victory. (Maybe take out Bitcoin Cash, and win on the top three.)