Purchasing property with crypto

[Dawn McComish]

I am a realtor and I have found a title company that says they can handle a crypto transaction.  They will verify the funds- transfer them to escrow and give the seller US dollars.  They are a reputable title company but they claim that the way they do the deal- it does not create a taxable event for the buyer.  Everything I have read says otherwise.  Any one have experience or knowledge?? 

[Marshall Leipprandt]

@Dawn McComish I'm not a CPA, but pretty sure that the title company is wrong and your head is in the right place. I don't have experience or knowledge with this specific scenario but I would ask the title company which IRS publication or section they are referencing in making their determination. From what I understand, IRS Publication 544 should detail the process of converting virtual currency to other property and the realized gain/loss tax implications of that transaction.

"Virtual currency is treated as property for federal income tax purposes. The general tax principles that apply to property transactions apply to transactions using virtual currency. A transaction involving...

An exchange of virtual currency for property, goods, or services;

Source below:

https://www.irs.gov/forms-pubs...