Whether you'll be able to build a nontaxable swap of cryptocurrency is polemic. A 1031 exchange may be a swap of 1 business or investment plus for one more. beneath the tax code, most swaps ar subject as sales. that is why the agency says bartering is subject to each side, whether or not for product or services. Section 1031 is Associate in Nursing exception to the rule that swaps ar typically totally subject. If you'll be able to manage to come back inside 1031, you'll be able to modification the shape of your investment while not (as the agency sees it) cashing out or recognizing financial gain. 
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however are you able to swap one cryptocurrency for one more, or for alternative property?
The agency says cryptocurrency is property not currency, therefore you may suppose you'll qualify. however whether or not 1031 applies to cryptocurrency is debatable. Some tax advisers say no, whereas others supply additional positive views, that in some cases 1031 will apply, only if you're careful. however this discussion might not be relevant for much longer. each the House account and therefore the Senate account propose to limit 1031 exchanges to property. the $64000 estate business is respiratory a sigh of relief that 1031 exchanges ar being unbroken for them.
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Most exchanges should just be of “like-kind.” amazingly, you'll be able to exchange Associate in Nursing residence for raw land, or a ranch for a sales outlet. Classically, Associate in Nursing exchange involves a straightforward swap of 1 property for one more between 2 folks. however the percentages of finding somebody with the precise property you wish WHO needs the precise property you've got ar slim. For that reason, the overwhelming majority of exchanges ar delayed or “Starker” exchanges (named for the tax case that allowed them). in an exceedingly delayed exchange, you wish a middleman WHO holds the money when you “sell” your property and uses it to “buy” the replacement property for you.