Saturday, April 3, 2021

Are 2017 crypto trades subject to taxes?

Hello Everyone,

I'm in a bit of a predicament dealing with crypto taxes for previous trading years, specifically 2017 which was my highest year. I understand from 2018 forward, all crypto-crypto trades are considered taxable events, but I came across some articles suggesting that trades made in 2017 might not be subject to tax due to crypto being classified as "property" under IRC 1031.

" In real estate, a 1031 exchange is a swap of one investment property for another that allows capital gains taxes to be deferred"

I know this seems to be bit of a gray area and my knowledge is a bit lacking in this aspect and would appreciate any insight on if this holds up and how anyone else in a similar position has dealt with taxes for trades made in 2017.

Referenced Articles:

https://www.cpapracticeadvisor.com/tax-compliance/news/12380583/the-classification-of-bitcoin-and-cryptocurrency-by-the-irs

https://www.coindesk.com/owe-irs-crypto-crypto-trades

Thanks!


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