Stretching Section 1031 Beyond Its Breaking Point?

I’ve been a qualified intermediary, facilitating section #1031 exchanges for nearly two decades. During that time I’ve helped thousands of clients complete successful exchanges of real estate and other business and investment property. I’ve also watched with interest as cryptocurrencies, like Bitcoin, grab a toehold around the world.

But until I saw this recent article, I didn’t imagine that section 1031 and cryptocurrency would be strung together in the same sentence. Let alone paired up.

But that’s exactly what one company is trying to do. The company is called Swapper and it is betting that such a coupling can work and be seen as legit in the eyes of the US government. And it all hinges on the fact that the IRS declared cryptocurrencies as “property.”

Read more about the effort behind extending “like-kind” exchanges to include cryptocurrency here. The jury remains out on the feasibility and, more importantly, demand for this type of product. But I’ve learned over the years that anything is possible.

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