Vaughn purchased and traded for various parts of crypto coins throughout 2020 and 2021. He has decided to sell some of his holdings to pay for a home renovation. How can Vaughn decide which coins to sell first for tax purposes?

1. All crypto holdings are sold on a last-in, first-out (LIFO) basis. Vaughn must sell the newest coins first.

2. All crypto holdings are sold on a first-in, first-out (FIFO) basis. Vaughn must sell the oldest coins first.

3.Vaughn can choose to sell on a last-in, first-out (LIFO) basis or specific identification, as long as he knows the date and time obtained, basis and fair market value (FMV) of each unit at the time he obtained them, date and time disposed, and FMV when disposed.

4. Vaughn can choose to sell on a first-in, first-out (FIFO) basis or specific identification, as long as he knows the date and time obtained, basis and fair market value (FMV) of each unit at the time he obtained them, date and time disposed, and FMV when disposed.

Answer rating: 100% (QA)

1 Lastin firstout LIFO trading is used to sell every cryptocurrency holding T... View the full answer