There are specific criteria a transaction needs to meet to qualify for a tax-deferred exchange. Full details in this TaxBuzz Guide.

Business-Investment Property - Both the property given, and the property received must be held for business or investment purposes.

Like-Kind - The properties exchanged must be like-kind (similar in nature, but not necessarily of the same quality). Real estate must be exchanged for real estate. Real estate includes residential, commercial, storage buildings, warehouses, land, manufacturing plants (improved or unimproved qualifies).

Certain Pre-2018 Cryptocurrency Exchanges Don’t Qualify for Sec 1031 Treatment – According to a Chief Counsel Advice, if completed prior to January 1, 2018, an exchange of (i) Bitcoin for Ether, (ii) Bitcoin for Litecoin, or (iii) Ether for Litecoin does not qualify as a like-kind exchange under § 1031. The CCA concluded these cryptocurrencies were not of like kind. This CCA does not address any other cryptocurrencies, or any other analyses not discussed in the advice, so no inferences should be made based on this CCA that are not explicitly set forth in this advice. Further, this CCA may not be used or cited as precedent. (CCA 202124008)