A taxable event is typically a sale or disposition of an asset. With cryptocurrency, a taxable event occurs when a coin is traded for cash (also known as fiat) or another cryptocurrency, or when cryptocurrency is used to purchase goods or services. Transferring cryptocurrency from one exchange to another (i.e., moving BTC from Coinbase to Bittrex) is not a taxable event. Converting one currency to another (BTC to ETH to an ICO) is considered a taxable event. It's also now explicitly forbidden to try to 1031 exchange your ICO holdings. Consult your tax professional as you make these decisions to decide how aggressive or conservative you wish to be, and how to appropriately provide the right documentation and pay taxes on events of this nature to create a record.

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