New U.S. tax bill amends "like-kind" exchanges to clarify that it applies to real estate only and may force FIFO
Credit to /u/panek for formatting this.
9 SEC. 13303. LIKE-KIND EXCHANGES OF REAL PROPERTY. 10
(a) IN GENERAL.-Section 1031(a)(l) is amended by
11 striking "property" each place it appears and inserting 12 "real property".
https://www.washingtonpost.com/apps/g/page/business/read-the-senate-tax-bill-released-friday/2264/ See Page 172
ALSO VERY IMPORTANT -- FIFO MAY BE FORCED UPON US: See Page 254/255
(a) IN GENERAL.-Section 1012 is amended by adding at the end the following new subsection:
"(e) COST BASIS OF SPECIFIED SECURITIES DETERMINED WITHOUT REGARD TO IDENTIFICATION.
"(l) IN GENERAL.-Unless the Secretary permits the use of an average basis method for determining cost, in the case of the sale, >exchange, or other disposition of a specified security (within the meaning of section 6045(g)(3)(B)), the basis (and holding period) of such security shall be determined on a first-in first-out basis.
"(2) EXCEPTION.-In the case of a sale, exchange, or other disposition of a specified security by a regulated investment company (as defined by section 851(a)), paragraph (1) shall not apply.".
Section 1012 deals with taxation of property:
https://www.law.cornell.edu/uscode/text/26/1012
Section 6045(g)(3)(b) defines a "specified security"
https://www.law.cornell.edu/uscode/text/26/6045
(B) Specified security
The term “specified security” means—
(i) any share of stock in a corporation,
(ii) any note, bond, debenture, or other evidence of indebtedness,
(iii) any commodity, or contract or derivative with respect to such commodity, if the Secretary determines that adjusted basis >* reporting is appropriate for purposes of this subsection, and
(iv) any other financial instrument with respect to which the Secretary determines that adjusted basis reporting is appropriate for purposes of this subsection.
Note the last clause:
This is likely a direct shot at crypto. This means that government can and likely will force FIFO upon crypto. Tread carefully.
Very interesting information! Thank-you for your time to share your knowledge with us!
Congratulations @adrewski! You received a personal award!
You can view your badges on your Steem Board and compare to others on the Steem Ranking
Vote for @Steemitboard as a witness to get one more award and increased upvotes!