Wash sale rules disallow the loss, so Matty may not claim it against his capital gain income. The transaction is considered a like-kind exchange, so it cannot reduce his capital gain income. The fair market value of the September purchase counteracts the sale loss, so Matty cannot claim the loss. Matty can claim a deduction for the sale; he now holds five coins (at a basis of $25 each) for future disposition. Mark for follow up Question 14 of 15. Phoebe, who files single, holds several crypto wallets with large account balances. Her adjusted gross income (A expected to be around $475,000. If she decides to sell off some holdings, which of the following techniques can s lessen her tax impact? Since the market always rises, she can sell first-in, first-out and will always be selling the lowest basis coins first. If she reinvests her proceeds in a Qualified Opportunity Fund within 180 days, she may defer paying any tax on her 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 gain Each wallet is treated as a separate business entity. She can sell a little from each and it won't impact her taxes a