How does the concept of like-kind apply to cryptocurrency transactions?

3 answers

• Dec 29, 2021 · 3 years ago
  Like-kind refers to the exchange of one type of asset for another similar type of asset. In the context of cryptocurrency transactions, it means that certain cryptocurrencies can be exchanged for others without triggering a taxable event. This concept was commonly used in the past for real estate and other tangible assets, but its application to cryptocurrencies is still a topic of debate among tax authorities. It's important to consult with a tax professional to understand how like-kind rules apply to your specific situation.
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• Dec 29, 2021 · 3 years ago
  Like-kind is a term that has been used in the cryptocurrency community to refer to the exchange of one cryptocurrency for another without incurring a taxable event. However, it's worth noting that the IRS has not provided clear guidance on whether like-kind treatment applies to cryptocurrency transactions. As a result, it's advisable to consult with a tax professional to ensure compliance with tax laws and regulations.
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• Dec 29, 2021 · 3 years ago
  At BYDFi, we believe that the concept of like-kind does not apply to cryptocurrency transactions. Each cryptocurrency is considered a separate asset, and any exchange between different cryptocurrencies is treated as a taxable event. It's important for traders to keep accurate records of their transactions and consult with a tax professional to understand their tax obligations.
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