Solved: For the past few days I've been researching the tax code 1031 and how it can't be used w/ cryptocurrency in 2018 ... So what will it be taxed as? Income, capital gain..?
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aussildoiron
New Member

For the past few days I've been researching the tax code 1031 and how it can't be used w/ cryptocurrency in 2018 ... So what will it be taxed as? Income, capital gain..?

A bunch of articles (including one on here) were saying, day trades for cryptocurrency would be taxed as income, while long-term investing with it is taxed as Capital gains. I am trying to figure out if that is in regards to 2018. 

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TaxGuyBill
Level 9

For the past few days I've been researching the tax code 1031 and how it can't be used w/ cryptocurrency in 2018 ... So what will it be taxed as? Income, capital gain..?

Besides definitely not qualifying as a 1031 Exchange, nothing changes in 2018 in regards to cryptocurrency.  The same rules apply.

If you are not sure of what those rules are, you need to provide as much detail as possible for exactly what you do with the cryptocurrency.
https://www.irs.gov/pub/irs-drop/n-14-21.pdf

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aussildoiron
New Member

For the past few days I've been researching the tax code 1031 and how it can't be used w/ cryptocurrency in 2018 ... So what will it be taxed as? Income, capital gain..?

@TaxGuyBill thank you very much for that quick response.  That is exactly what I was looking for.
TaxGuyBill
Level 9

For the past few days I've been researching the tax code 1031 and how it can't be used w/ cryptocurrency in 2018 ... So what will it be taxed as? Income, capital gain..?

Besides definitely not qualifying as a 1031 Exchange, nothing changes in 2018 in regards to cryptocurrency.  The same rules apply.

If you are not sure of what those rules are, you need to provide as much detail as possible for exactly what you do with the cryptocurrency.
https://www.irs.gov/pub/irs-drop/n-14-21.pdf

View solution in original post

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