Safely park your funds tax free
using our like-kind exchange
The first blockchain-based qualified intermediary for legally deferring capital tax gains on your cryptocurrency investments.
What is Swapper?
Swapper is a service known as a Qualified Intermediary that allows digital currency investors to defer paying capital gains taxes on their profits through the use of the 1031 "Like-Kind" exchange.
Swapper is a service known as a Qualified Intermediary that allows digital currency investors to defer paying capital gains taxes on their profits through the use of the 1031 "Like-Kind" exchange. This is the service
- Deferred Tax Payment
A like kind exchange allows you to "park" your crypto investments for up to 6 months with zero tax liability.
- Like Kind Exchange
We offer a strategic timing option allowing you to ride out highly volatile market conditions.
- Asset-Neutral Smart Contracts
We can quickly and safely move your crypto and other investments into fiat. Real Estate, Business Assets, Aircraft, Artwork, Intellectual Property etc, all can be exchanged.
What is a 'Like Kind' Exchange?
Internal Revenue Code Section 1031 allows you the opportunity to defer capital gains taxes owed upon the sale of investment or income property by exchanging the property for other like-kind property. The IRS states specific guidelines that must be followed and a Qualified Intermediary provides for a safe harbor exchange.
How Swapper works
The Swapper platform is a legally registered Qualified Intermediary service that will allow digital currency investors to carry out 1031 like-kind exchanges on your cryptocurrency with all the benefits of blockchain technology. While traditional Qualified Intermediary services rely on e-mail, snail mail and require burdensome paperwork, Swapper will allow instant transactions designed for volatile conditions, privacy through encryption and robust security. At the same time, Swapper will generate a record of transactions on the blockchain that will make it easier for investors to properly track, prepare and file their necessary paperwork.
To put it simply, the process of a tax deferral using Swapper would look like this:
Alice buys 1 Bitcoin on 1-1-2015 for $100.00. Bitcoin increases in value to $200.00 on 1-2-2016. Alice wants to sell her Bitcoin. Alice is a top income earner and calculates that she is subject to 35% capital gains tax rate on her profit of $100.00, or $35.00.
Scenario 1: Alice sells her Bitcoin on 1-2-2016 for $200.00 pays $35.00 to the IRS. This leaves Alice with $165.00. On 2-2-2016 the price of Bitcoin crashes back to $100.00 and Alice wants to re-invest. She logs into Coinbase and makes the purchase and receives 1.65 Bitcoins in her wallet.
Scenario 2: Alice decides to sell her Bitcoin on 1-2-2016 for $200.00 and chooses to defer taxes on her gains and engages Swapper to be her Qualified Intermediary to facilitate the transaction. Alice / Swapper sells her Bitcoin for $200.00 with the full $200.00 credited to her escrow account on Swapper. On 2-2- 2016 the price of Bitcoin crashes back to $100.00 and Alice wants to re-invest. She logs into Swapper and makes the purchase and receives 2 Bitcoins in her wallet.
Initial Token Offering: DECEMBER 4th - JANUARY 2nd