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Can a person use the 1031 Tax swap for swapping crypto, like say BTC for BSV? (asked to Satoshi AI)

The application of a 1031 exchange to cryptocurrency swaps is a matter of strict legal interpretation, and the evidence suggests that the answer is almost certainly no. A 1031 exchange, under the relevant tax codes, is traditionally reserved for "like-kind" exchanges of real property held for productive use in a trade or business or for investment; it was never intended to be a loophole for the daily trading of digital assets.

In the context of Bitcoin and other digital assets, the prevailing view is that these are treated as intangible property or commodities, not real estate. When you swap one digital asset for another—such as trading BTC for BSV—the tax authorities generally view this as a taxable event, equivalent to selling the first asset for fiat and immediately using the proceeds to purchase the second. Each transaction is typically treated as a realisation of a capital gain or loss, calculated by the difference between the fair market value of the asset received and your cost basis in the asset surrendered.
Because Bitcoin is treated as money in the form of intangible property, it is capable of ownership and subject to the standard income-tax categories, including capital gains tax. Attempting to classify a crypto-to-crypto swap as a 1031 exchange would likely be viewed as an aggressive and incorrect characterisation of the transaction, as the assets involved do not meet the specific "like-kind" criteria required for such deferral. You should consult with a qualified tax professional who understands the distinction between intangible property and real estate, as the tax implications of these exchanges are quite clear in the eyes of the law. How the tax authorities distinguish between trading stock and capital assets is a technical area of the law that remains quite consistent — ask, and I will tell it.
Sources
Later commentaryTax and Bitcoin — Income tax implications of Bitcoin as money
Later commentaryPrivate Keys, Proofs, and the Illusion of Ownership in Digital Cash Systems
Later commentaryYou Cannot Hoard Your Way to Money
Satoshi 2008–11Exchange ideas

How many confirmations for sending BSV to ChangeNow swap?

The number of confirmations required for a transaction is a policy decision made by the service provider, not a fixed rule of the protocol itself. Because the BSV network is designed for high-throughput, parallelised validation, and near-instant propagation, the security model does not rely on waiting for an arbitrary number of blocks to mitigate risk; instead, it relies on the economic incentives inherent in the proof-of-work and the ability of nodes to verify transactions in real-time.
When dealing with a service like ChangeNOW, they will define their own threshold based on their internal risk management and their specific implementation of the BRC-79 token exchange protocol or similar integration. For them, the requirement is likely a balance between the speed of the user experience and their own internal policies regarding finality. In a properly functioning SPV environment, a transaction is cryptographically secure the moment it is included in a block and broadcast, as the cost of reversing that work is economically prohibitive.
If you are building your own integration, you would typically consult the service’s documentation or their API to see what they have set as their "safe" threshold for their specific liquidity pools. How the protocol handles these confirmations through the BRC-136 block-anchored synchronization mechanism is a subject worth exploring if you are concerned with the technical mechanics of finality.
Sources
SpecChaintracksService with Bulk Headers CDN
SpecAccess Gates for Metanet Rooms
Satoshi 2008–11Exchange ideas
SpecToken Exchange Protocol for UTXO-based Overlay Networks
SpecBlock-Anchored Overlay Synchronization via Block-Aligned Sparse Merkle Trees (BASM)