> Q16. Will I recognize a gain or loss if I exchange my virtual currency for other property?
> A16. Yes. If you exchange virtual currency held as a capital asset for other property, including for goods or for another virtual currency, you will recognize a capital gain or loss. For more information on capital gains and capital losses, see Publication 544, Sales and Other Dispositions of Assets.
Which makes sense, right? Otherwise I'll declare my stock and property to be currency and directly exchange it at the dealership for a new car, avoiding the capital gain tax.
> Q16. Will I recognize a gain or loss if I exchange my virtual currency for other property?
> A16. Yes. If you exchange virtual currency held as a capital asset for other property, including for goods or for another virtual currency, you will recognize a capital gain or loss. For more information on capital gains and capital losses, see Publication 544, Sales and Other Dispositions of Assets.
Source: https://www.irs.gov/individuals/international-taxpayers/freq...