716/22, 5:18 PM section 1 Realize Your Potential: H&R Block Test Crypto and Other Virtual Currency (2022) Question 1 of 10. Juno, who files single, holds several crypto wallets with large account balances. Her adjusted gross income (AGI) is expected to be around $450,000. If she decides to sell off some holdings, which of the following techniques can she use to lessen her tax impact? Each wallet is treated as a separate business entity. She can sell a little from each and it won't impact her taxes at all. If she reinvests her proceeds in a Qualified Opportunity Fund within 180 days, she may defer paying any tax on her gains. This will enable her to spread the tax impact over several years. By selling her short-term holdings she will avoid capital gains, and she can pay ordinary income rates on the gains. Since the market always rises, she can sell first-in, first-out and will always be selling the lowest basis coins first. Mark for follow up Question 2 of 10. Nuno purchased five crypto coins for $1,000 in October of 2020. He sold two of the coins for $375 in May of 2021. He later sold the remaining three coins for $720 in September of 2021. What is his net gain or loss on the coins? $25 short-term loss. $95 short-term gain. $120 short-term gain. $145 short-term gain. Mark for follow up Question 3 of 10. Laslo received crypto coins from an airdrop. How will he determine his basis in the coins? O Coins received in an airdrop are only treated as ordinary income. There is no basis for them. Laslo's basis is equal to the fair market value (FMV) the day before the airdrop. loss. Laslo's basis is equal to the FMV on the date he disposes of them. Therefore, coins received in an airdrop never show a gain Laslo's basis is equal to the FMV at the date and time he constructively received the coins. Mark for follow up