Bitcoin, Cryptocurrency Trades Face New Liability in Tax Bill

The sweeping GOP tax bill includes a provision that would increase tax liabilities for investors looking to exchange bitcoin, ether, and other virtual currencies that have soared in value.The legislation would eliminate the ability of investors to defer taxes when they exchange one virtual currency for another if the original currency has appreciated in price. The impact stems from a provision in the measure that limits tax deferments for so-called like-kind exchanges of property to only include exchanges of real estate property.

The tax shift comes as the Internal Revenue Service (IRS) ramps up investigations of individual tax returns for ...