Video Summaries for Privacy Fight Ultimate - U50 to U74
U50 – Thursday Evening Chat August 5, 2021 – Watch Now
This executive summary relates to a recorded chat from the U50 event held on Thursday evening, August 5, 2021, on the topic of “Privacy Fight.” The host, John Jay, begins by inviting the audience to access more content on the Privacy Fight’s website and YouTube channel. He also mentions the introduction of a helpdesk on their platform.
The conversation pivots to discussing various aspects of cryptocurrency investments. The host explains that rewards earned from staking, for example, Litecoin, are not considered taxable income. However, selling the staked cryptocurrency for dollars makes it a taxable event. He raises questions about tax obligations related to transferring cryptos to a wallet one doesn’t own, which he finds nonsensical.
John then delves into the benefits of a two-member LLC for personal protection, emphasizing that personal debts cannot intrude upon the company assets. He continues to speak about the process of taking profits from a cryptocurrency investment through an LLC, and explains the importance of understanding tax laws associated with such transactions.
Several audience members ask questions ranging from transferring personal crypto holdings to an LLC, setting up an LLC, integrating crypto investments with real estate or other businesses, and handling of 10-99 K forms. The discussion also covers the legality of holding driver’s licenses from other countries, and the merits and demerits of holding assets in an LLC versus a trust.
John emphasizes the versatility of an LLC, allowing for easy incorporation of partners and simplified transaction processes. Additionally, he addresses the concerns of setting up bank accounts for an LLC and potential delays faced by members while dealing with certain financial institutions.
In summary, this chat focuses on the complexities of managing cryptocurrency investments, emphasizing privacy, the role of LLCs, the tax implications of cryptocurrency transactions, and the importance of understanding financial and legal nuances associated with personal and business finance.
U51 – Fla LLC Discussion – Watch Now
The recording you provided centers around a discussion between two individuals planning to establish a Florida Limited Liability Company (LLC) via the Secretary of State’s website, sunbiz.org. The pair walk through the registration process together, providing step-by-step commentary on how to complete the necessary forms and highlighting important considerations along the way.
Initially, they select the option to file a new company, defining the business as “Virtuous Living Ventures” and providing a principal address in Brandon, Florida. They discuss that the company’s address won’t necessarily determine where it receives mail, which instead depends on where they direct people to send mail.
They stress the importance of correctly registering the company’s mailing address and the registered agent, who is chosen as Charles Homuth for this case. The agent’s address should ideally be where legal documents and official notices are expected to be received. The dangers of providing an inaccurate address are underscored as it could lead to unintentional default on legal proceedings.
In defining the company structure, the individuals choose a single managing member model, with Homuth serving as the registered agent. They also decide to include an optional provision that the individual members are not liable for the company’s debts or obligations, further delineating personal and business liabilities.
The session concludes with the individuals acknowledging the flexibility offered by the LLC structure, stating that one could add more members or assign them specific roles, such as CEO or Secretary, if desired. They indicate that if a situation arises where more than a few members are needed, a corporation might be a better option.
U52 – How to Open LLC Account – Watch Now
The video, “U52 – How to Open LLC Account – Privacy Fight,” by John Jay, discusses the strategies and benefits of using a Limited Liability Company (LLC) for various purposes. He emphasizes that LLCs can provide a reliable method for minimizing personal risk and ensuring privacy.
In the video, Jay gives insights into the challenges faced when opening an LLC account in a bank, specifically regarding the friction caused by the Private Membership Association (PMA) in this process. Despite these challenges, he stresses the importance of persistence, as he believes it is ultimately possible to open an account.
John also discusses his approach to managing these challenges by ensuring that the LLC’s articles of association remain the principal governing documents, irrespective of the information given to the bank. He suggests that the information given to the bank can be modified, as the bank’s forms and records do not override the articles of association, which he believes should always remain the controlling factor.
He also elaborates on the flexibility of LLCs in managing various types of assets and investments, such as cryptocurrencies, stocks, real estate, and precious metals. He notes that one LLC can manage all these assets, making it an effective tool for risk management.
John provides examples of scenarios where an LLC could be used, including when selling coins or purchasing property. He emphasizes the importance of making sure the property’s title is in the name of the LLC, not the individual, to avoid potential tax implications.
Towards the end of the video, Jay demonstrates how to create a lien, using a mortgage contract as an example. He explains that one can use a government website to obtain these documents and suggests using an amortization calculator to calculate reasonable numbers for these documents.
Finally, he gives advice on using an LLC to own property and place a lien on a vehicle, stating that an LLC can be used for both purposes but advises against placing the vehicle and house in the same LLC due to liability risks.
U53 – Thursday Evening Chat September 2, 2021 – Watch Now
“U53 – Thursday Evening Chat September 2, 2021 – Privacy Fight” is a transcript of a chat session led by John, discussing topics of privacy, corporate structuring, tax implications, and investment strategies.
John starts the conversation by addressing some technical difficulties due to a storm in his location in Florida, which might cause interruptions. The main topic of the chat is addressing queries and concerns from participants, most of them regarding financial, legal, and investment issues.
One of the key points discussed is the importance and usage of Form W-9 in the process of establishing a new LLC, for which he explains the intimidating nature but necessary utilization. He mentions the idea of having control over clearing funds without necessarily needing a W-9 form.
John further talks about the importance of maintaining good standing for an LLC, even if it may require some nominal fees, unless it’s too old, where starting afresh might be more cost-effective. He provides guidance on diversification in investment, encouraging participants to allocate their investments in real estate, gold, precious metals, and small businesses, depending on market conditions and individual knowledge.
He highlights the importance of listening to experts like Kathryn Austin Fitts, emphasizing the importance of knowing more about the market before making an investment decision. Moreover, he advises participants to invest in things they love or are efficient in.
The conversation continues with questions about the percentage of investment in gold or silver, in which John provides a humorous but practical approach. He then discusses the administrative and legal aspects of LLCs and trusts, providing detailed guidance on how to handle various documents and procedures.
Furthermore, John elaborates on the creation and use of a Private Membership Association (PMA) as a means to document and protect wealth, operating separately from one’s personal estate. He also covers the importance of IRS form 1099, offering anecdotal evidence of his experiences handling debt collections and the implications of its use or misuse.
The session wraps up with a variety of additional queries, with John providing advice on everything from managing brokerage accounts, handling business operations within marital communities, to evaluating potential investment opportunities in businesses or real estate, and the importance of robust record-keeping.
U54 – The PMA and it’s applications Part I – Watch Now
In “U54 – The PMA and its applications Part I – Privacy Fight,” John Jay delves into the concept and implications of the Private Membership Association (PMA), drawing from his personal experiences and understanding of the matter. He presents the PMA as a tool used by his mother, a healer operating within the bounds of law, through her guise as a massage therapist. As he progressed through the early 2000s, he recognized the PMA concept was more prevalent than he had previously believed.
Jay presents PMAs as a solution for professionals seeking to organize their practices, sharing that he has assisted physicians to establish PMAs in recent years. This allows them to work within the bounds of legality and confidentiality, providing healing services. He also explains that the PMA has implications in the business world, sharing a personal anecdote about an investment arrangement he has with his brother which operates within the PMA structure.
As the presentation continues, Jay discusses the many forms associations can take, such as homeowners associations, professional societies, or even families. PMAs, he argues, can be run democratically with a governing body elected by the association members. He emphasizes the importance of the operation and management of these associations, as the way they function is more significant than the governing documents themselves.
Jay further explores the potential of PMAs in estate management, arguing that PMAs can operate outside of the often expensive and exploitative court system. He argues that such associations can keep control within the association, only engaging with the court system when absolutely necessary. He also discusses the possibility of using a PMA to manage divorce agreements outside the court system.
Finally, Jay introduces the concept of using a PMA within the realm of cryptocurrency exchanges, highlighting its potential in providing a layer of privacy for users. Despite being a newer application of the PMA concept, Jay asserts its viability and effectiveness. His exploration of PMAs showcases the wide-ranging applications and the potential of these associations in various facets of life, including professional, personal, and financial arenas.
U55 – The PMA and it’s applications Part II – Watch Now
“U55 – The PMA and its applications Part II – Privacy Fight” focuses on the discussions about the implementation and potential benefits of Private Membership Associations (PMAs) in various contexts. The speaker, John, introduces listeners to PMAs and their potential uses, indicating that people are often already members of several associations, such as family, work, or clubs. He explains the roles within these associations and highlights their importance in defining the structure of a PMA.
John proceeds to detail how the recognition of an association’s structure can be used to implement PMA mechanics. He uses examples such as families and homeowner associations, stressing the importance of having an identifiable name for these associations. Furthermore, he mentions the inclusion of various age demographics, emphasizing the importance of protecting the rights of all involved, regardless of age.
The presenter explains that PMAs allow for the setting up of structures to protect property rights in a manner that doesn’t conflict with conventional property law. He touches on banking in relation to PMAs, discussing challenges he has faced in trying to open bank accounts for PMAs and how he navigates these issues.
The discussion also covers disability and the document set up to cater to those needs. Furthermore, John addresses how PMA naming works, stating that while the PMA will appear on public records, one can utilize different strategies for naming PMAs for privacy or legal protection.
Lastly, John discusses how to build credit for an LLC, which is seen as a separate legal entity. He explains that one must be careful not to act as a personal guarantor in this process. The session ends with John addressing specific questions and issues raised by the participants, emphasizing the need for direct communication for urgent inquiries.
U56 – Australian LLC — How to Register – Watch Now
“U55 – The PMA and its applications Part II – Privacy Fight” focuses on the discussions about the implementation and potential benefits of Private Membership Associations (PMAs) in various contexts. The speaker, John, introduces listeners to PMAs and their potential uses, indicating that people are often already members of several associations, such as family, work, or clubs. He explains the roles within these associations and highlights their importance in defining the structure of a PMA.
John proceeds to detail how the recognition of an association’s structure can be used to implement PMA mechanics. He uses examples such as families and homeowner associations, stressing the importance of having an identifiable name for these associations. Furthermore, he mentions the inclusion of various age demographics, emphasizing the importance of protecting the rights of all involved, regardless of age.
The presenter explains that PMAs allow for the setting up of structures to protect property rights in a manner that doesn’t conflict with conventional property law. He touches on banking in relation to PMAs, discussing challenges he has faced in trying to open bank accounts for PMAs and how he navigates these issues.
The discussion also covers disability and the document set up to cater to those needs. Furthermore, John addresses how PMA naming works, stating that while the PMA will appear on public records, one can utilize different strategies for naming PMAs for privacy or legal protection.
Lastly, John discusses how to build credit for an LLC, which is seen as a separate legal entity. He explains that one must be careful not to act as a personal guarantor in this process. The session ends with John addressing specific questions and issues raised by the participants, emphasizing the need for direct communication for urgent inquiries.
U57 – Thursday Evening Chat October 7, 2021 – Cryptos and Basics – Watch Now
In the Thursday Evening Chat on October 7, 2021, titled “U57 – Cryptos and Basics – Privacy Fight,” John Jay discusses a range of financial topics from cryptocurrency management to asset protection.
Jay begins the chat reminiscing about his experience handling debt issues, such as IRS problems, credit card debt, and mortgages since the mid-nineties. He mentions his work with small businesses and consumers, handling over 30,000 different debt collection cases.
Moving on to the topic of cryptocurrencies, he discusses the challenges associated with tracking transactions and calculating tax liabilities on crypto gains. He simplifies this process, suggesting it’s basic algebra, factoring in the initial purchase cost and fees, and comparing it against the coin’s value when sold. He emphasizes that when cryptocurrencies are sold for traditional currency, it may create a taxable, reportable event.
Jay then delves into more advanced topics like asset protection, discussing how title transfers and beneficial interest changes can help protect assets in scenarios involving creditors. He explains the concept of the “innocent party” and the need for such a party to avoid common liabilities like married couples may have.
He continues by explaining the importance of the LLC structure in asset protection and the additional layer of protection provided by trusts or PMAs. He emphasizes the importance of correctly establishing these structures, with the right relationships and documentation.
In the context of real estate, Jay suggests placing each asset in separate LLCs for better asset protection. He notes that this could even be done without registering the LLCs, making them essentially untraceable to the owners.
The chat continues with discussions around tax considerations, where Jay emphasizes that correctly structured entities do not have a tax obligation. He mentions specific scenarios around international partnerships and LLCs, explaining how these structures can be used for tax and asset protection purposes.
Lastly, Jay talks about how cryptocurrencies are treated for tax purposes globally, pointing out that as of the date of the chat, only El Salvador recognized Bitcoin as legal tender. He concludes by discussing client-specific titling strategies for assets, reinforcing the importance of precise documentation and asset structuring.
U58 – IRS Crypto News Items How to Research – Watch Now
“U58 – IRS Crypto News Items How to Research – Privacy Fight” is an in-depth recording by John Jay aimed at educating the public about recent developments and regulatory changes related to cryptocurrency and tax evasion. Jay provides insights on how to accurately follow the news about cryptocurrencies, highlighting the importance of understanding beyond just the headlines. He critically examines recent news items related to the government’s crackdown on crypto-related tax evasion and raises skepticism about the government’s motives.
Jay explores the process of tax reporting and the potential for IRS crackdowns on cryptocurrency holdings. He discusses several important legal frameworks, such as the use of Rule 27 in court proceedings, the IRS audit process, and the application of the United States Code and Code of Federal Regulations in crypto-related cases. This understanding allows listeners to navigate the legal landscape and helps in countering potential IRS claims.
Jay also presents a unique perspective on stablecoins and how they may be exploited in potential tax evasion schemes. He points out that the IRS primarily sees people as employees or employers, thereby highlighting potential blind spots in its oversight mechanisms.
The recording continues with a deep dive into the IRS’s internal processes, particularly how they build cases and their perception of cryptocurrency activities. Jay shares detailed knowledge of various IRS manuals, legal statutes, and regulatory mechanisms. He provides real-life case studies to elucidate these complex topics further.
Finally, Jay wraps up the discussion by providing practical advice on establishing a Limited Liability Company in states with favorable conditions like Ohio, New Mexico, and Pennsylvania. He provides insight into obtaining an Employer Identification Number (EIN) and discusses potential options for avoiding annual fees.
Overall, this discussion seeks to demystify the complex interplay between cryptocurrencies, tax regulations, and legal frameworks. It equips listeners with the tools to better understand and navigate this rapidly evolving landscape.
U59 – Isolating Risk – Watch Now
“U59 – Isolating Risk – Privacy Fight” presents a comprehensive guide on managing financial risk and safeguarding personal assets. It discusses the concept of isolating risk in financial matters by identifying liabilities and protecting one’s assets against potential judgments or claims. The speaker emphasizes that individuals can insulate their assets by adjusting property rights through various structures, like LLCs, stocks, or vaults.
In cases of stock ownership, the speaker explains that there are ways to limit liability and protect assets by changing the ownership or title of the stocks, particularly through stock transfer agreements. For gold in vaults, one strategy to protect assets is to change the account holder from the individual’s name to an LLC. Moreover, in relation to property like vehicles, vessels, and aircraft, the title can also be altered for protection.
The speaker underscores the importance of carefully managing assets and liabilities. Assets that often lead to negative cash flow, like real estate and vessels, should be treated with caution, and borrowing money against these assets could be a viable option. Also, utilizing credit can help manage cash flow in business operations. Moreover, the speaker emphasizes the benefits of using other people’s money, especially in real estate investments.
Lastly, the speaker underlines the significance of financial education and how it should be integrated into wealth inheritance. Leaving vast amounts of money to the unprepared can be damaging, suggesting that understanding how to handle money is crucial before gaining substantial wealth. Furthermore, he criticizes endowment contracts and their influence on the education system, implying the importance of being vigilant in making legal agreements. In conclusion, risk isolation is a multi-faceted process involving strategies in asset ownership, credit management, and financial education.
U60 – The Need for Captive Insurance – Watch Now
The video titled “U60 – The Need for Captive Insurance – Privacy Fight” dives deep into the concept of captive insurance and the importance of understanding and employing it, especially for investors amidst an uncertain future due to geopolitical and economic scenarios. The speaker emphasizes that the real estate investors and others must consider the future risks, and highlights the concept of captive insurance as a potential way to offset such risks.
The speaker provides a historical context and discusses the evolution of banking and economic systems. They talk about the move away from gold and precious metal-backed currencies towards script and the role of global entities such as Vanguard and Blackrock in owning a substantial part of global assets. They raise concerns about a cabal of families controlling major world assets and influencing global policy.
Discussing the current state of affairs, the speaker notes the shift towards a corporate guardianship government system and suggests that such a system is controlled by an elite few. The speaker emphasizes that these influential families have potentially been in control for centuries.
The main argument presented is the need for a shift towards managing risk through self-established systems like captive insurance, which are separate from the current banking system. This is seen as a way to create and manage assets independently, allowing the investor to retain more control over their financial future.
The speaker also delves into the potential of cryptographic currency, arguing that while it could lead to destruction, it can also save and sustain economies. They note the importance of managing and controlling access to resources and emphasize the importance of commerce and competition.
Lastly, the speaker discusses the concept of captive insurance in more depth, detailing how it could serve as a potential solution for risk management. The speaker posits that while captive insurance is a part of the existing banking system, investors do not necessarily need to be part of this system to make use of the concept.
The speaker believes that captive insurance could help investors reallocate and manage their assets and risks effectively. They close the discussion by emphasizing the importance of understanding the concept of captive insurance and its role in future investment planning.
U61 – Opening Accounts with group owners of LLC Part I – Watch Now
The speaker begins by discussing the concept of Private Membership Associations (PMAs), a topic he has previously covered in depth in another video. He notes recent issues with PMAs being rejected by the banking system, suggesting a collaborative effort between banks and state Secretaries of State.
He addresses this issue by proposing changes to their approach. He suggests starting the LLCs as single-member LLCs, if the banking system poses too much difficulty, and then amending the articles as needed. He also presents the option to inform the bank what they want to hear.
He further explains the concept of a PMA and its utilization. The speaker has used PMAs since the late nineties and emphasizes that PMAs are essentially groups of people – associations – that include individuals, corporations, and other trusts. He stresses that if one has difficulty with the bank, it is essential to tell them whatever they want to hear.
The speaker addresses the possibility of pushback from the banks by arguing that they don’t need to be informed about everything, such as the internal workings of the PMA. He encourages listeners not to blindly comply with the bank’s instructions, arguing that they are managing risk in a specific way, which may not be understood by the banks.
He closes by proposing a method for managing the risks associated with ownership and LLCs: divesting exclusive rights into a group, creating an “innocent party” that doesn’t have liability. He concludes that this method would protect the individual, while still maintaining the structure and benefits of a PMA.
U62 – Opening Accounts with group owners of LLC Part II – Watch Now
This appears to be a transcription of a discussion about using Limited Liability Companies (LLCs) and trusts to manage and protect personal assets. The speaker, presumably an expert in the field, discusses several strategies for structuring an LLC to protect personal assets. The topics covered include the benefits of having a single-member LLC, the process for changing LLC members, and using trusts as members for further asset protection.
The discussion also covers the use of a Private Membership Association (PMA) trust and its benefits when opening bank accounts. In this strategy, the PMA trust is the managing member of the LLC, which may offer advantages in terms of liability and tax consequences. The speaker also discusses the importance of maintaining congruence between the address of the EIN applicant and the signer’s address for smooth banking operations.
The speaker cautions about potential issues related to bank consolidations and advises not to overly rely on banks. He then addresses several questions about managing profits from cryptocurrencies, using trusts for owning real estate, and managing personal expenditures from the trust. He notes that a well-written operating agreement is crucial to preventing anyone from “piercing the corporate veil” and accessing personal assets.
In the concluding part, the speaker describes the process of amending the articles of an LLC and provides a brief walkthrough of how to make these changes, demonstrating how to add a new managing member to an LLC. Finally, he discusses potential issues and strategies related to subpoenas and court orders.
U63 – Amending LLC Articles WA & VA – Watch Now
In this discussion, the speaker focuses on the process and importance of documenting and amending the articles for a Limited Liability Company (LLC). The articles, which can be published in a newspaper or recorded via the Secretary of State’s office or the provincial office in Canada, carry detailed information about the company, its affiliations, the owner’s name, and the registered agent.
The speaker underscores the role of the registered agent, who is responsible for receiving legal documents in case of lawsuits or official processes and forwarding them to the board of directors or owners. The speaker also notes the role of organizers in setting up an LLC, emphasizing that they carry no liability towards the company.
A case study of the amendment process in the State of Washington is presented, detailing how a state-provided form is used to make changes such as the name of the LLC, the registered agent, and office address. The process in Virginia is also touched upon, where, unlike Washington, a specific form is not provided, but instructions are given as to what information is needed for an amendment request.
Finally, the speaker demonstrates an example of amending LLC articles in Virginia, discussing how to add or remove members and change the managing member. The speaker highlights that the amendment process may need approvals from members or organizers, depending on the LLC’s structure, and concludes by emphasizing the binding nature of these articles as they are public records.
U64 – Residency, Eligibility & Liability – Watch Now
The lecture discusses the implications of residency on various liabilities, focusing largely on tax liabilities, regulatory compliance, and claims against an individual or an entity. The speaker establishes the importance of understanding the concept of residency and how it can be leveraged to navigate potential liabilities, specifically regarding taxation. The concepts of liability and residency are tied to benefits – the example given being eligibility for a driver’s license being a benefit of residency, which in turn establishes a liability for adhering to certain regulations.
The lecture then discusses ways to mitigate these liabilities, with disclaiming liability or changing residency as possible approaches. The speaker introduces the concept of using LLCs to manage liability, detailing the use of LLCs to divest exclusive rights and reduce tax liabilities. This process essentially involves designating the ownership of the LLC to a non-residential group which does not carry the same tax obligations as an individual resident.
The speaker then provides examples from US and Israeli laws, and the nuances of managing LLCs under these laws. The discussion dives deep into the tax implications of pass-through entities like LLCs, and how taxes are calculated based on whether the income remains within the LLC or is distributed. It is clarified that certain government authorities might challenge the legitimacy of an LLC as a shell organization to avoid taxes, but such instances are relatively rare.
The lecture concludes by highlighting the importance of understanding the impact of residency on eligibility and the resultant liabilities. It also emphasizes the need for clear communication between parties involved in any financial arrangements to avoid misunderstandings regarding liability. The speaker stresses that understanding these concepts allows for more effective tax and liability management.
U65 – Reviewing An Investment Or Biz Opportunity – Watch Now
In this analysis, the speaker discusses a potential business investment opportunity involving a company that sells stainless steel water bottles. Marketed to a niche audience that prioritizes environmental conservation, the company has been operating for two years and reports a profit margin of 25%, though the speaker questions this figure given the limited monthly revenue of $1000. Additionally, the lack of disclosure concerning gross income raises further skepticism about the company’s performance.
The speaker also highlights issues regarding the company’s large inventory, valued at $5000, suggesting possible overstocking or poor sales management. In any negotiation for this business, the speaker advises excluding this inventory cost from the asking price. Instead, it should be dealt with separately, ideally paying for it at the acquisition cost.
The speaker observes that the stainless steel water bottles may be more suited for promotional use or to be sold in bulk to businesses for branding, questioning the effectiveness of targeting individual consumers. Furthermore, potential supply chain issues are noted due to the likely importation of these products from countries such as China, Taiwan, or Vietnam.
Ultimately, the speaker regards the business as overpriced and risky. They suggest that independently buying and reselling similar products could be more profitable and efficient. Thus, potential investors should thoroughly evaluate and consider these various factors before deciding to invest in this business.
U66 – Tax Year 2021 – What to Say on Form 1040 if you have Cryptos – Watch Now
The video discusses how to disclose cryptocurrency holdings in the U.S. tax form 1040 for the year 2021. The presenter advises that unless an individual has received a 1099 form related to virtual currency, they can answer “no” to disclosing their interests in cryptocurrencies. The reason being, the IRS primarily wants to know when you disposed of cryptocurrency for dollars.
The video argues that even if one makes an error in this regard, the IRS lacks the data to proceed unless a 1099 form was received. In the event of a discrepancy discovered during an audit, the IRS would have to send a statement of underreporting, giving you the chance to amend your return or get a determination letter, which the presenter has a separate video discussing.
The presenter then touches on crypto swaps, arguing that the tax-free nature of these transactions was misinterpreted in 2015, leading many to erroneously apply tax code 1031 (related to real estate) to cryptocurrencies. This is clarified by the IRS, which stated that this tax code is not applicable to cryptocurrencies. The presenter emphasizes that the only thing that matters tax-wise is the disposition of cryptocurrency for dollars.
Lastly, the presenter challenges the prevailing understanding of on-chain and off-chain transactions. They argue that transactions on exchanges do not reflect on the blockchain but rather on an internal software program, which contradicts the common perception of these terms. The presenter also presents the idea that moving cryptocurrencies to a paper wallet or handing over the private keys to someone else does not create a taxable event according to the blockchain, which contradicts IRS rules. They conclude that dollars, not virtual currencies, are taxed, and that the banking system has forced everyone to use dollars while declaring other methods of using dollars as taxable.
U67 – Feb 17, 2022 Q&A – Watch Now
The U67 podcast episode of February 17, 2022, focused primarily on taxation, particularly as it pertains to cryptocurrency and personal income, with a spotlight on a specific IRS case. The episode starts with a discussion about how taxpayers are often unaware of the tax implications when dealing with cryptocurrencies, leading to possible overpayment of taxes. This can result in legal battles as they seek refunds.
The hosts also discuss the complexities of tax law, particularly when it comes to intangible private property, a category that cryptocurrencies can fall under. The claim is made that current U.S. tax law doesn’t necessarily tax intangible private property unless the taxpayer declares it and pays the respective taxes. A current case is highlighted where a couple is fighting the IRS for tax refund on cryptocurrency, making a point for future potential litigants.
In the course of the discussion, the podcast hosts touch on a few other topics, including lifestyle habits and personal choices related to health and privacy. They delve into the idea of personal freedoms and suggest unconventional ways of living and handling finances. One of the hosts proposes withdrawing participation from certain systems or services that infringe on personal freedoms, such as professional sports or certain technological conveniences.
The hosts also explore the intersection of privacy and technology, and how technologies like the blockchain can be used to increase individual sovereignty and wealth. They discuss the shifting landscape of global finance and banking, predicting that China might lead in the development of blockchain technology and the transformation of traditional banking systems.
In response to listener questions, the hosts provide specific advice on dealing with IRS tax liabilities, such as applying for abatement of fees and penalties and exhausting administrative remedies. They also advise on strategies for dealing with high net worth individuals, including creating an LLC for real estate holdings and operating with a minimum amount of personal income.
Towards the end, they delve into the topic of tax exemptions and possible issues arising from false declarations. They caution listeners to seek proper legal advice before making any decision related to taxes, investments, and income. The podcast episode concludes by touching on issues related to trusts and banks and how they relate to individual financial strategies.
In summary, the episode provided a nuanced look at taxes, cryptocurrency, privacy, and financial freedom, offering listeners an insight into unconventional and potentially rewarding strategies to manage their finances and lifestyle.
U68 – Investment Opportunities with Mr Tycoon – Watch Now
This transcript is a conversation between John Jay, a podcast host, and a real estate investor known as Mr. Tycoon. They discuss various topics related to real estate investment strategies, including ways to get into the real estate market, how to capitalize on foreclosure opportunities, and approaches to managing debt and leveraging cash flows.
Mr. Tycoon emphasizes that real estate investment requires a methodical approach, similar to following a recipe, and stresses the importance of buying at a discount to protect against market fluctuations. He suggests that real estate can provide an effective hedge against volatility, since, unlike other assets, rents did not decrease during the last financial downturn.
They also talk about unconventional financing options for real estate investments. John Jay was surprised to learn from Mr. Tycoon that 90% of investment deals do not involve the investor’s own cash or traditional banking services. Instead, they typically rely on external funding sources.
Mr. Tycoon also highlights the potential benefits of investing in underprivileged neighborhoods and helping individuals affected by credit issues or redlining. He emphasizes the potential societal benefits of such investments, along with the financial returns.
John Jay and Mr. Tycoon further discuss the impacts of debt and the strategies for managing it effectively in real estate investing. Mr. Tycoon suggests that some level of debt can be beneficial, as it allows for leverage in investments.
The conversation then shifts to the topic of commercial real estate. Given the current economic situation, Mr. Tycoon foresees a difficult recovery for the commercial sector and advises listeners to focus on residential real estate.
Finally, they cover the topic of ‘subject to’ investing, a strategy where the investor takes over the mortgage payments for a homeowner in distress, offering a win-win solution for both parties. They advise potential investors to ensure they have a proper understanding of this strategy’s legal and financial implications before embarking on it.
U69 – March 11, 2022 Discussion Crypto Exchanges Reporting & IRS Fishing – Watch Now
The discussion focuses on the implications and legality of cryptocurrencies, their tax obligations, IRS reporting, and how the blockchain can potentially benefit users. The speaker, John, discusses how cryptocurrencies function on an immutable, public, open-source accounting ledger, noting that the IRS could access these records if desired. He explores how the IRS uses information and suggests that it’s currently creating case law.
John also discusses how the IRS could possibly utilize a special task force from MIT or Google to better understand and navigate the cryptocurrency landscape. He suggests that the IRS already has access to user data and uses the gathered information to determine where to direct their resources.
The topic of tax obligations arising from interest gained on cryptocurrencies is also touched upon. John explains that it is impossible to avoid these tax liabilities and that the information regarding these transactions is discoverable, suggesting a lack of privacy in cryptocurrency transactions.
The discussion then delves into the details of how partnerships, liabilities, and tax treatments work within the cryptocurrency landscape. It is suggested that if two parties are involved in continuous transactions, they would have a subsequent liability until they dissolve their partnership or inform the IRS of changes.
Lastly, John discusses the future of cryptocurrencies and the IRS, suggesting that the agency may use blockchain technology in the future. However, he believes this will not happen until the ‘old guard’ is replaced and a new technological system is developed. The session concludes with various questions and answers about specific situations involving LLCs, trusts, tax reports, and IRS regulations.
U70 – LLC Only Gains are Taxable – Watch Now
In this discussion, the key points of interest revolve around the operations of a Limited Liability Company (LLC), and specifically how they can be owned and managed within the framework of a Private Membership Association (PMA). The idea is to utilize a PMA to own an LLC, which will facilitate the mitigation of certain legal and financial risks. The LLC could be a single-member entity if the single member is a PMA, thus negating the need for multiple members in the LLC.
The ownership of assets within an LLC was discussed, with emphasis on the transfer and sale of assets, specifically customer lists and receivables. It was mentioned that if a business is sold, the value of the customer list becomes an asset. It was highlighted that the payment processing method should be switched to the new company after the sale to transfer the asset.
In relation to tax obligations, it was made clear that dividends and profits are taxable. However, the increase in value of assets such as stocks is not taxable unless declared as income. If the declaration does not occur before the end of the tax cycle, no tax is due. The tax cycle’s end is typically December 31st for most individuals.
There was discussion about the role of an LLC in investing, specifically in relation to cryptocurrencies. If one intends to invest in cryptocurrencies via an LLC, a separate LLC should be created for this purpose. This will involve acquiring a new Employer Identification Number (EIN) and a bank account associated with the LLC.
Lastly, the protection of personal interests within a corporation was discussed. It was advised to maintain strict boundaries between personal and corporate interests to safeguard against potential legal complications. This can be accomplished through careful documentation and ensuring business operations are conducted in a legally sound manner.
U71 – Original Rule 27 & LLC Default Terms – Watch Now
The speaker begins the session by introducing the topic of discussion: Original Rule 27 & LLC Default Terms. He explains that he will elucidate on how he comes up with answers to the questions he is asked, highlighting his thought process. He then introduces Federal Rule of Civil Procedure Rule 27, which deals with depositions to perpetuate testimony.
Next, the speaker shifts to the issue of how Limited Liability Companies (LLCs) adopt default terms, emphasizing the potential issues when using standard templates for operating agreements from online publishers or attorneys. These agreements, he argues, do not focus adequately on risk management or financial risk.
Discussing the marketing of offshore structures, he emphasizes that these structures, despite their complex and seemingly attractive legal mechanisms, do not necessarily guarantee protection against claims by other parties or governments. He warns that using offshore structures may draw unwanted attention.
The speaker then talks about how LLCs can be used for asset protection. He argues against having a set schedule of distributions, which can protect the LLC from creditors. The speaker emphasizes that establishing an LLC is a good idea even if it’s a single-member LLC owned by a private membership association, unincorporated Association, or Trust.
Furthermore, the speaker dives into the nuances of capital accounts in LLCs, suggesting that they can be a good idea, but noting that they can also expose company records and potentially compromise privacy. He underscores the importance of the manager’s authority to determine the amount and timing of distributions for asset protection.
Lastly, he draws attention to the importance of having an operating agreement and cautions listeners to ensure that the agreement covers all necessary aspects of the LLC. He advises against including capital accounts in the operating agreement to maintain privacy. He also mentions the importance of being careful with the terms that give members the right to receive a distribution, stressing that a specific schedule should be avoided.
U72 – DBA for LLC & Funding – Watch Now
The discussed video covers a range of topics primarily focusing on the use of Limited Liability Companies (LLCs) and doing business under a fictitious name, commonly known as a Doing Business As (DBA). The speaker underscores how LLCs and DBAs can be leveraged to manage cash flow, structure the ownership of assets, and reduce liability. He explains that altering the property rights can help legally avoid tax liability on dividends from assets or on the sale of valuable commodities like gold.
The speaker also dives into specific use cases for DBAs, which can be beneficial for brand protection and separating different business interests. DBAs allow a business to operate under a different name than the company’s official registered name, facilitating anonymity and allowing easier branding for different lines of business.
On the topic of finance and taxation, the speaker offers strategies to avoid tax liability and handle potential audits. He cautions against frivolous loan documentation to cover living expenses and advises viewers to seek counsel from attorneys primarily for research purposes, not just for their legal advice.
Regarding real estate and mortgages, the speaker outlines how loans can be used to manage assets and strip equity for asset protection purposes. He also emphasizes the importance of documenting loans for real estate and mentions some sources for acquiring mortgage or trustee documents.
The speaker concludes by discussing potential pitfalls, including the risk of being accused of fraudulent conveyance in lawsuits, which involves transferring property to avoid debt or an obligation to a creditor. Despite this risk, he asserts that creditors rarely pursue such cases due to the high cost involved. Overall, the conversation offers guidance for leveraging LLCs and DBAs, navigating financial matters, and maintaining asset protection.
U73 – IRS is Friendly & Not Going Away – Watch Now
This discussion centers around the IRS (Internal Revenue Service) and how to navigate interactions with them, especially concerning taxation. The presenter reinforces that the IRS isn’t going anywhere since it is the ‘accounting firm’ for the United States, managing tax codes and activities.
The presenter details the IRS process of tax assessment. The IRS operates on the tax returns sent by individuals and assesses tax based on these returns. The speaker suggests that the IRS is generally friendly, assuming the filer hasn’t made any significant missteps.
Further, they outline procedures for responding to tax notices. They advocate for honesty in these interactions and suggest using specific IRS forms for specific situations. The speaker also mentions the Administrative Procedures Act, which supposedly gives taxpayers more remedies than if they were to sue the IRS.
The discussion delves into the specific tax situations related to cryptocurrency, property ownership, and the implications of the state of residence. The speaker also advises caution when setting up foreign-owned businesses.
The speaker then covers potential tax implications of running money through an LLC and mentions specific precautions related to transactions in cryptocurrencies. The concept of ‘privacy’ is highlighted, suggesting that while IRS and FinCEN can see all transactions, the right strategy can still ensure privacy.
The presentation concludes with a broader conversation about the current social and economic environment. The speaker discusses topics from food preservation to auto repair shops, indicating a broader interest in self-sufficiency and survivalism. Additionally, the speaker offers a critique of the state of California’s governance and questions its long-term goals.
U74 – Q&A Financial Risk Strategies – Watch Now
The discussion centered around financial strategies, mainly focusing on the use of Private Membership Associations (PMAs) and Limited Liability Companies (LLCs). The speaker emphasized the benefits of PMAs, a structure often misunderstood by attorneys as it’s not defined by statute. A PMA allows for managing cash flow, assets, and liabilities outside of one’s personal estate.
The speaker also delved into the mechanics of setting up LLCs and the various aspects surrounding their operation. Participants were guided on how to file tax returns for new LLCs, the potential risk of claiming Schedule C income for LLCs, and the mechanics of leveraging an S-corp for income processing.
Additionally, the session highlighted the strategic advantage of accrual-based accounting for companies, especially regarding claiming business expenses and 1099 processing. The speaker cautioned about the careful treatment of stock given its 1099 implications.
The conversation also touched on real estate and cryptocurrency investments. For real estate, the speaker advised holding property under a separate entity like an LLC or a trust. For cryptocurrencies, the strategy involved opening an LLC and moving personal crypto assets to it, where the nature of the transaction defines the subsequent tax treatment.
Lastly, the speaker guided the participants on amending the Articles of Organization for an LLC to include a new member, emphasizing the role of such adjustments in mitigating financial risks. The meeting concluded with a discussion on different forms of trusts that can serve as alternative asset protection strategies.