$*****$

Cryptocurrency Transactions

Wages: Michael $($$$80,000)$

Sold cryptocurrency $($held for over a year$)$ with the following:

Proceeds: $$35,000$

Cost Basis: $$12,000$

Purchased new cryptocurrency: $$10,000$

Received cryptocurrency worth $$2,500$ as payment for freelance work.

Itemized Deductions: $$27,000$

Allowable deduction for self$-$employment tax: None

Calculate:

AGI, Taxable Income, and Total Tax Liability $($consider tax treatment of the various crypto transactions$)$