$*******$

Scenario $2$: Cryptocurrency Complexities

Michael invested in various cryptocurrencies throughout the year. Here's a breakdown of his activity:

Sold Bitcoin $($held for $2$ years$)$ at a $$15,000$ gain.

Mined Ethereum, generating $$4,000$ worth of ETH.

Used some cryptocurrency to purchase goods online $($cost basis of the crypto was $$500,$ value at the time of purchase was $$800).$

Received an airdrop of a new token worth $$1,200$ at the time of receipt.

Wages: $$72,000$

Interest and Dividend Income: $$600$

Itemized Deductions: $$20,000$

Allowable deduction for self$-$employment tax: None

Questions:

How are each of these cryptocurrency transactions taxed?

Calculate AGI, taxable income, and total tax liability.

Are there any additional forms or schedules Michael may need to file?