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Do altcoin trades count as like-kind exchanges? (Deferred capital gains tax)
Just a thought because this is a really good question: Would the buying and selling of blockchain based digital currency,   using other blockchain based digital currencies, be subject to like   kind treatment and exempt from capital gains until exchanged for a   non-blockchain based good or service (or national currency) Suppose someone sells 1 bitcoin to buy 100 monero.  Monero's price and bitcoin's price then change to where the 100 monero are 3 bitcoins.  The person gets their bitcoin back and has 66.67 monero remaining. This scenario could be: Suppose someone sells 1 bitcoin at $1000 to buy 100 monero at $10.  Bitcoin crashes 80% to $200 while monero crashes to only $6 per monero.  $6 times 100 is $600 and if the person gets their bitcoin back (at $200 per bitcoi), they still lost money when measured in US Dollars if they move that bitcoin back to US dollars. In reading the IRS on bitcoin, they only care about the US dollar value of bitcoin or monero and in this example, the US dollar value is less.  The person may have more bitcoins, but they still lost money if they sell.