When can a 1031 exchange be a transition rule?
Could you elaborate on when a 1031 exchange could potentially serve as a transition rule in the realm of cryptocurrency and finance? Are there specific scenarios or market conditions where this tax-deferred treatment might be particularly beneficial for investors looking to shift their portfolios or explore new opportunities in the digital asset space? Additionally, what are the key considerations and potential drawbacks that one should be aware of when contemplating such a strategy?