Quote from: REalSmartCrypto on Today at 04:50:49 PM

Thanks for your response using quotes to follow easily. I’m not that sophisticated yet on here to do that.

The most important issue is your premise that “exchanging” is the same thing as “investing” - I don’t think that’s true. I’m not saying that BTC would get exchanged into membership interest. It would be invested as BTC into the LLC. I know you would be getting membership in “exchange” but your asset denomination is still BTC.

I'm not sure why the same "asset denomination" affects anything. If I "invest" USD into an LLC, and get a membership interest, by your logic I would still have an "asset denomination" (of the LLC membership) of USD; and this is obviously a taxable event despite that perspective. I don't think tracking whether the "asset denomination" is usually relevant to this type of discussion.

Quote from: REalSmartCrypto on Today at 04:50:49 PM

That’s what I mean about investing in that currency. Exchanging would be going from BTC to ETH for example (different currency). If it stays BTC and gets invested as such into the LLC, I really don’t think that’s a taxable event. Although, it might be. That’s the key though. If it’s not than you should be able to invest gains tax free given it would be like kind. I’m asking CryptoTaxGirl right now - https://cryptotaxgirl.com/

No, unfortunately I don't think your chain of reasoning makes sense. By your logic if I "invested" USD into a LLC and then "invested" USD into a different LLC this would not be taxable.

Quote from: REalSmartCrypto on Today at 04:50:49 PM

I’m asking CryptoTaxGirl right now - https://cryptotaxgirl.com/

That's the right path. Interested in whether she say's it's not taxable on its face (I mean, if it's a tax-advantaged entity doing the "invest"ing, then something is different, but even then it's still not at all obvious there would not be potential gains / transfers).