Crypto Like-Kind Exchange Guide for Tax Treatment History (2026)
Understand crypto like-kind exchange tax treatment: pre-2018 rules, current prohibition, historical reporting, and tax reform impact on crypto swaps.
Summary
Like-kind exchange treatment ended for crypto after 2017. This guide explains historical rules, current prohibition, and tax reform impact.
Key Steps
- 1Understand historical rule: crypto-to-crypto swaps possibly 1031 before 2018.
- 2Tax reform change: TCJA 2017 ended 1031 for crypto, only real property qualifies.
- 3Track pre-2018 transactions: may need historical cost basis for old holdings.
- 4Current treatment: all crypto swaps taxable events, no 1031 deferral.
- 5Document swap history: maintain records for pre-2018 basis tracking.