Replies to post #15392 on Grayscale Bitcoin Trust (GBTC)

[Tenured]

Yes that part is understandable. I think we all get that.

The question brought up, however, was a in coin for coin exchange, how to determine the capital Gain. The IRS suggests coin for coin transactions are taxable.

For example: If you buy bitcoin for $8100(today's price) and use bitcoin to buy ethereum priced at $520, what is the capital Gain?

The IRS is stating that coin for coin exchanges like this don't fall under the 1031 exception like in real estate. That's the point of confusion for many.