U22 – This one was a Question and Answer Discussion about very basic LLC andTax Strategies
0:00
So, this, I’m gonna make this recording available on the YouTube channel privacy fight, OK, and privacy fight is one word. So, again, I’m just going to summarize again. We’re going to talk about the basics of using a limited liability company, opening accounts at the bank, and opening accounts that the exchanges. If you want to talk about more complex questions, we can certainly do that on this call, but I just thought I’d just start it that way with the basics.
0:25
So, what we can do is, um, I believe you can raise your hand here, so to speak, and then I can let you ask the question, are we can start a conversation, you can make a comment if you want, and that’ll just kinda lead the discussion.
0:36
We can’t, OK.
0:45
I just found this is Terry. I don’t know how to raise my hand, so to speak up, if that’s OK. Yeah. Hi, Terry. Fine.
0:50
Hi, hey, I’m filling out the application. I know on Gemini one of the well, and I know Coinbase did this as well. They want to know, you know, who owns a greater than a 10% of the LLC and in all cases I put nuts.
1:09
I put nobody does.
1:11
Just because I knew it would caused me to have to give them more information, so was that correct?
1:19
How I did it? Did it result in you getting the account opened?
1:23
I don’t know, because I was, like, within the last week, and I know they’re bartered, so, really been about maybe 10 days since I’ve done these, so I’m not sure, OK. My preference is to just look at what the Certificate of beneficial interest in states, that one that I provide when I open your when I create your documents. Literally, change what it says there, and most of the time, I’m going to use a PMA as 100% owner.
1:49
That means the authorized signer, right? Which is what I, what I have, is that: So, yeah. So I don’t know if I did it wrong. If I could just put I had that 100% of it. Well, let’s say they do really. It’s just like you just want to get your account open. So while that’s what I figured, too, so I could be wrong, but my thinking is to go exactly on the certificate, a beneficial interest that I wrote, because I wrote it for that reason. So you can get your account.
2:19
OK, thank you. Sure.
2:26
Yeah.
2:30
Yeah. Hey, hey, Johnny. Mike, I have a question. I think that’s when you’ve probably charge video. So let’s say I’m using like a simple swap, and I’m exchanging token.
2:51
Sorry about that, Mike. Just unmute.
2:54
Trying to clean it up a little bit.
2:56
Oh, there we go. Sorry about that. Using one token.
2:58
You said, well, like a simple swap.
3:01
But just an exchange, let’s say, an exchange, some theta into true USD.
3:08
Then I send really haven’t created a taxable event yet or, right, Or, I’m still an exodus just changing stuff around.
3:17
So so it’s not really until I send like true USD two like Coinbase and then send that into my checking account. Correct, when you trade it for dollars, then you may have a taxable reportable event. Yes.
3:32
OK, and so then I just just reported, either add, like, uh, long term capital gains or short-term. If you want to do that, my gosh, that’s the whole point of using the LLC. I mean, if you’re going to do that transaction, put it in the LLC.
3:45
Yeah, I know.
3:46
I’m trying to get the thing, but keep in mind, if you get up, I just can’t, it hard. It’s hard for me to wrap my head around it, buddy. Alright, well, just to save you an effort here, if you’re just gonna take that money out, like one thousand bucks, and just go spend it on something well, then just take it out.
4:06
I mean, you don’t have to run it through the company, so, But, but, if it’s going to be a real transaction, like buying a car or something, definitely, you want to use the LLC, and yeah, it’s hard to get your brain around that.
4:16
Like, gosh, we’ve been trained our whole lives to file returns all the time.
4:19
If I can give you a couple of examples of when you would not file a return, I mean, you can ask your accountant.
4:25
Yeah.
4:28
Man, I hate taxes. Just, look, I go to the Secretary of State’s website and scroll down, search on, um, like here in Florida, it’s called sun biz dot org, and I can search on corporations.
4:41
And, uh, if I search on A, it’s going to, it’s going to just give a age is hundreds of companies, OK, most of, which probably 90% are expired revoked charters.
4:57
But, so these are right now, for my small P brain, I’m not creating a taxable event until I send it into my checking account.
5:07
Correct.
5:09
Oh, that’s correct.
5:10
Even if let’s say I took a big chunk and put it into exodus wallet on true USD this year but didn’t send my checking account till next year, then that’s the taxable event.
5:22
That would be for next year. Right? There’s no taxable event.
5:25
You didn’t realize again, And, going from coin to coin, didn’t change the beneficial interests.
5:32
So, yeah, there’s no gain. OK, appreciate it, thanks, I’ll explain later on, I’ll explain what exactly how do you determine that.
5:39
Karen want to ask a question?
5:41
I think you just unmute it, John.
5:45
Taking cashing out, and I want to go into another asset.
5:52
Would it be under another LLC of the same LLC?
5:55
when you show that that cash out of it?
6:00
You could use the same LLC, you could have a crypto account with an LLC, and then sell some of your kryptos for dollars into the LLC, and then buy a car with it, and then you can title the card in the name of the LLC.
6:16
I want an LLC.
6:17
A lot of different asset classes.
6:21
And I set up another LLC for that.
6:24
Do I, would that be a taxable event, just one LLC, and put it into the other? No, it would not. And there is the issue of beneficial interests, not changing, but then it doesn’t really matter about beneficial interests.
6:39
You can move from one company to another, and then it depends on the accounting and reporting practices of the company. So if they’re both your company, well, then your beneficial interest stay the same.
6:50
And sometimes you do want a separate company if you want to isolate risk. So if it’s an asset with, let’s say, another partner, you may not want to take your site LLC, that’s, you know, your Bitcoin account.
7:00
Yeah, all right, and then the second one with a partner, I don’t know.
7:05
Buying real estate.
7:06
I’m guessing that would be a standard taxable event putting cash into it but its own operations.
7:15
What would be taxable? It would do as a partner, that one.
7:18
Would that be, buy a house or property with a partner under that second LLC?
7:25
That would file, assuming the partner, no, not comprehend, what’s going on here, and cash being put into that LLC. What does that, is that? That’s what you still have.
7:36
the option when it becomes reportable and taxable, is when you file a tax return.
7:41
So if you, if you take on a partner and you decide you want to use your company and file a return in a certain way, well then, yes, it becomes taxable at that point. But you still have the option not to do that. I’ve done partnerships with people before, and I just let them file a return for the company. You can do that if you want.
8:03
It’s up to you though. Yeah. And you can work it out with the partnership. What what?
8:09
When you’ve done that, you know, cash put it into that LLC and partners files for that. So that means you’re on the hook for it to, correct.
8:20
If the company files, you could separate it out where the your partner gets a disbursement and he’s happy with the money.
8:29
And you can retain your whatever.
8:31
You can have your text situation different than your partners, but if you file collectively with the company, then whatever interest you have in the company is subject to that whatever filing you choose.
8:43
All right, and last thing is the tax boards.
8:45
I’m taking the cache and putting it in there from crypto.
8:49
So, not, not the, I don’t know, capital gains from selling a house or anything like that, but just taking from LLC, one, taking the crypto gains, … with a partner. Just that move into L two with the partner. No, that’s not, OK I thought would not be taxable, That’s like contributing to accompany. That’d be like, if you set up a new company, is in fact, exactly, like funding a company, or buying an investment, or buying stock. So, buying an interest in something that’s not taxable. Question is, what about the company?
9:18
Because the company is receiving money and yeah, you, the company again has the choice to, to determine if that’s gonna be a tax situation, and it doesn’t have to be that way, I can, I can move money, I could, I could sell coins for a million dollars and then move it to three different companies in one day.
9:33
That’s not going to create a tax liability.
9:37
I don’t even have to have a reason for that.
9:40
Yep.
9:48
And if you guys love me, I’ll just keep on talking, so I’m just kinda giving you the opportunity to guide this conversation.
9:54
I’ll just start telling these stories.
9:58
My purpose was to just cover the basics. I mean, we can, we can get into this, how to do some transactions too, if you want.
10:05
Does anybody have other questions? Go ahead.
10:08
Yeah. So you are talking about, an example, a little bit ago about buying a car was like no funds from your company. So, say, I have like, I had crypto, and I wanted to buy a car LLC.
10:24
Know, it’s, it’s, it’s owned by an LLC, What tax risk do I have with data and reporting requirements or anything along those lines well, your LLC can take an asset and and sell it for dollars So let’s start there. So it’s going to sell coins, or it’s going to sell gold.
10:43
And the money goes to the company, and then that company can turn around and buy something, a car.
10:49
And the card title can be in a different name, like, you can make up a trust name, or a new LLC, or that same company that sent the money for the car, can be the title holder.
10:58
Does that answer your question?
10:59
Because I got more for you.
11:02
Yeah. That was the tax consequence.
11:05
No? No tax consequences, right? Because I know in the past and other interviews, you’ve stated something to the effect that, you know, when you use your LLC, to purchase a car, for example, that you want to, like, set up a scenario where you’re paying your car payments, or something. So, that was my next example.
11:22
If I want to put the car my name, maybe it’s easier for insurance or something.
11:27
So if I put the car in my name, I want to put a loan on it. So the way I do it, is I just tell the dealer.
11:34
I’m buying this car and I have a loan already established, it’s ready to go.
11:39
Just tell me where to send the money, and the dealer will will record the certificate of title with the DMV, in the name of the lender and due to what it always does, It’ll send the lender, the title documents, and it’ll send you the loan payment documents, or whatever. You know, have you work it out.
11:58
And so the way you document that is, show, You have to, just, you want to keep records showing that you’re making those card payments, whatever it is. And you can decide what those are, because you’re the lender, basically, you get to decide.
12:08
But just make sure that you document those payments, OK? You can just see, you can make, like, you know, $200 a month payments. But there’s really no defined line as to when you stop making those payments or how would I would do work? I would just make it a typical loan.
12:24
Like if I’m going to if I’m gonna go to the trouble of getting a loaner vehicle the car I’m going to drive. I’m going to make it a 3 or 5 year loan.
12:31
And, got it! I will already know my terms.
12:34
So what I’ll do, is I’ll go on the Internet, and I’ll do an amortization for 60 months.
12:40
For a real interest rate that I would probably qualify for, like me, probably is going to be 9%. I don’t know if that’s highest, probably 12%, I don’t know, it’s going to be high. So, I would do an amortization because my credit is bad.
12:52
So, then I would get the numbers.
12:55
I would get my monthly payment, I would already have that written down and have it calculates.
12:59
So, now, I can just go into the dealer and say here, you know, here’s the loan terms, he’ll write up the documents and put the names in the right places.
13:08
Got one more question for you. In the past, you’ve talked about, like, I think it’s called a whole life policy where, you know, you have a certain, you know, like, I don’t know if windfall, or certainly a lot and amount of money and that you can work it.
13:23
We’re like, you pay the interest upfront and then after a certain point when that policy matures, you can start getting like quarterly payments or whatever is specified within the terms of your situation. So, I was from the perspective of like say like I’m getting like a monthly income from passive income, from a crypto or something like that. What recommendations would you have?
13:53
Cause receiving monthly money, are like, I would probably be receiving an initially lived in, a stable coin of some sort, right? So if I wanted, or needed to turn that into dollars, or some sort of what recommendations would you make up for the monthly situation to kind of limit your tax liability, or, if possible, not have one? Are you contributing each about contributing to the insurance contract?
14:23
If well, I was just kind of articulating a scenario that, I remember you talking before.
14:30
Are you saying that maybe monthly income is contributing to that same policy?
14:37
You could do that.
14:39
If you’re funding a policy, you can do it with regular premium payments, or a single payment, I’m not sure, I understand your question. You want to fund an insurance policy, and you can just do that.
14:53
OK, I guess, I guess what I’m really trying to get out is if I’m receiving a monthly pass, OK, and I have a passive or not a stable coin. What What options do I have to limit my tax liability?
15:14
OK, well, that’s not taxable, Just receiving stable.
15:17
No, no, no, Yes, I’m sorry. I should have completed when I, if I need to turn that stable coin into no liquidity or you want Do you want to get stuff alright.
15:28
So, you can say OK, anything personal so anything personal is going to be denominated in the dollar. So, whoever however that gets paid is considered your income.
15:41
So, whatever that looks like, any, any personal obligation you have that gets paid by anybody or anything, even if you barter it is going to be considered your income.
15:51
So, OK, So that, so that means I need to, know, file your tax forms and whatnot with the IRS and not kind of thing. Yeah, just add up Hearing Fellows.
16:01
Yeah, if your income exceeds uygur wasn’t $600 for the year, then it probably should be reported.
16:09
If you want to reduce it, I would just suggest to you, that probably the least concern, if you’re making a lot of money in kryptos, or you’re running a business.
16:16
I would not be so concerned about my personal taxes on my regular living expense income, the income I need to pay my bills.
16:24
I don’t, I don’t think that’s, I don’t think taxes should be the purpose of your decision making.
16:31
Although we can do it, I mean, we could talk about that. We can make it zero taxes, if you want, that’s easy. But really, like you mentioned, the whole life policy, that is a tool for managing risk. And so, you have to decide what risks you want to manage with it. It sounds kinda cool to put some money in an insurance policy. They borrowed out, and it’s 8% or something I’m making on it. While I’m using the money it’s after tax money because I pay the interest upfront. OK, well, what am I doing with that money? What risk am I managing?
16:54
I would say that a good risk would be the operating costs of an expense asset.
17:01
So let’s say you bought a business and it has so many operating costs and you’ve, you’ve whittled them down as far as you can. The next thing to do would be pay those costs with borrowed money from the insurance policy.
17:12
That would further lower your operating costs.
17:15
That’s a good way to use it. But certainly you can live off of it.
17:19
You can borrow quarterly or annually and pay your whole living expenses in advance with borrowed money, tax free money after tax money, and then have zero taxes. And then, yeah, not file a return, if you wanted to do that.
17:34
All right. Thank you. That answered my question.
17:36
OK, I think Terry was over there.
17:40
Want to tell you how to question?
17:43
Yeah, I just wanted to go back to the car thing, where the LLC loans you, the money to buy a car.
17:51
OK, so I Set up a payment plan, but is the LLC obligated to report that loan to some government agency?
18:01
It’s not going to do that.
18:03
OK, LLC will not do that.
18:05
No reporting, no, no, no.
18:08
Right, no one will know, but because people pay me money to tell them this stuff, I’m just going to tell you how to do it correctly.
18:12
Just keep track of it, because if you’re auditing, you don’t want, You don’t want the IRS to criticize the transaction, You don’t want to be in a situation where you can’t prove that there was an actual payment, or the interest rate was not real, and then send you a bill for imputed income tax liability that you did not report. It’s called underreporting.
18:32
So we’re just trying to avoid that situation. So, you know, if I, if I tell you this stuff and then, I’d never talk to you ever again in five Years later. You have an audit, You’ll be covered.
18:42
Great question, OK, so it’s just, it’s just me as the individual that could get ODOT. It’s not the LLC.
18:48
Yeah, the LLC is not filing, but the IRS asked, the IRS could audit you and ask about the LLC and that’s fine. I’ve seen cases like that before, and usually it doesn’t, OK. There’s nothing that really matters. The audit is intended to determine if your tax liability is correct.
19:07
OK, so does the same go, if the LLC, I take a loan out for, to pay off my house with my LLC, so the LLC, so I’d pay the LLC back.
19:19
So does that is the LLC in the case of a house? Does that have to do any kind of a reporting? No matter how big?
19:26
Now, it doesn’t matter how big you can spend $10 million out of it, 2050, it doesn’t matter, OK? Perfect, That’s what I needed to know.
19:35
Yep.
19:35
It’s an innocent party the way we’re doing this, Just creating an innocent party, OK, Interesting, OK.
19:43
Thank you, OK.
19:46
Um, You can interrupt me, but I’ll just say a couple of things. On the, you know that there’s no change in beneficial interests, if you still have the same concern about the money.
19:57
So if you’re moving money around from thing to thing, account to account, personal to LLC, to LLC, whatever, if you care about that money after you do it, the beneficial interests have not changed.
20:11
So that’s how you, that’s kinda the measurement of how you know.
20:15
And that’s a key thing. I mean, we do that for estate planning.
20:18
So if somebody wants to avoid capital gains tax on real estate or the sale of stock, that would normally be a disposition of assets. So, we make sure the disposition takes place in the pass through. Where we can pull the money somewhere and not realize again, and not be subject to tax tax reporting. So, before a sale of real estate takes place, you can literally file it quitclaim deed now. You shouldn’t have to follow the quitclaim deed.
20:43
It’s just that the people involved with the closings are typically not going to honor a contract unless it’s recorded in public record.
20:51
So, if you want to get around the cap gains tax, if you own the real estate, you would deeded over to a company and be the owner of the company.
21:00
That retains beneficial interests, not an argument.
21:03
And, uh, Then, when the closing takes place, the funds would go to the current titleholder, Even if you did that during the closing process, just make sure that you can assign the contract and make sure the sellers or, I’m sorry, the buyer, it is OK with that, which they should be, because it is not going to prejudice the contract at all.
21:21
So, that’s another example.
21:24
But, yeah, it’s for estate planning purposes.
21:34
I’ll share with you one example. Let’s, let’s take a little bit to another level. Let’s say you’ve got a lot of money. I always use this example, $10 million and it’s time to re-allocate. It’s time to sell some Bitcoin or whatever asset. You got the money in and put it into some real estate. You always want to buy a hotel.
21:51
So, you, you sell the coins for $10 million into your company, and then you go and make a deal on the hotel.
22:00
So you pay cash for the hotel.
22:02
You spent the whole whole 10 million on the hotel.
22:04
Well, that’s fine, and I’m sure it would be a good asset.
22:06
And it’s the asset is making money, but the fact is when you pay cash for an asset, it’s a business paying you money, You’re, by default, your own lender. So, here, we have a different kind of risk, and this is why I tell people don’t focus so much on making decisions like this. You have a really interesting tool here, a really useful tool.
22:27
Don’t just use it for like, mundane things, like who really cares about $5, OK.
22:34
Use it for really good things, so if I’m gonna, if I’m going to buy an asset with cash.
22:40
I, I understand that if I’m my own lender, because I don’t have a lender.
22:45
My cash is tied up in that asset, so I’m on my own lender. What’s the problem with that? Well, maybe I’m really good at real estate, but I don’t understand lending.
22:53
And not moreover, maybe I do understand lending, but I don’t know, people, I can’t get my loan that I’m, by default, my own lender.
23:01
I can’t get that offset by another loan.
23:05
I can’t call up a bigger lender, no get alone, that, that I just took. You say that’s how banks work. When banks give you a loan, they go get a loan for the loan they just gave you and if you’re your own lender, by default, chances are you’re not going to be able to do that, And you’re not going to understand how to gage the risk. I mean, you can get lucky, and it may never happen to you, but it’s It’s a better use of capital.
23:28
If you have a lot of cash tied up in an asset Don’t leave it there for a long time you want to offset some of that risk. And the way to manage risk in business, and buying assets, is to actually use debt.
23:40
Debt is your friend.
23:42
Too much personal debt is not your friend.
23:44
A little personal debt is a good idea, And a little bit more business, Debt is a pretty good idea, too. So, like, for example, if I’m gonna go partner with somebody, Let’s say, I wanted to go by part of that hotel with, somebody that just bought it, and I go, meet with them, and we’re talking about the thing, and I asked him what his, um, you know, has financing terms aren’t all that Stephanie goes, oh yeah, I paid cash for it. Well, I think he’s an idiot.
24:08
I probably wouldn’t deal with them.
24:10
So, just keep that in mind.
24:12
If you’re dealing with $10 million, you gotta be, you know, you gotta be smart.
24:16
Use other people’s money.
24:20
And avoid making decisions solely for tax benefits.
24:23
You’re just gonna get yourself into a trap, and you’re gonna miss things, you’re gonna miss.
24:27
You’re gonna miss opportunity because just like I’ve talked to, so many people that were afraid to do things on their kryptos because they were concerned about tax liability, so they missed out on taking profits, you know, a few years ago.
24:39
And so let’s now’s the time to learn about that.
24:42
Let’s, let’s not be afraid and let’s, so let’s take some profits and who cares about taxes? You can deal with that later.
24:49
I’ve got situations where some of my clients owe a lot of money in taxes and we can either work out a payment plan. The IRS is very friendly. The states are workable. They’re not as friendly as the IRS, believe it or not.
25:00
But that’s my last concern. My first concern is, like, my dentist asked me.
25:05
If my account is telling me all these things to do to get tax deductions and you’re telling me, that’s a stupid idea, well, what then should I look for?
25:12
And I say, well, make decisions with your capital based upon return on capital based upon capitalization rate, not based upon a tax deduction, or even interest rate for that matter, I don’t really care too much about interest rates.
25:26
I just want my financing.
25:28
I can manage my interest rate. I’ll give an example.
25:30
Let’s say my interest rates a bit too high.
25:32
Well, I’m going to take a chunk of money and go fund a life policy for some insurable interest.
25:39
And I’m going to borrow against it within about a year or two.
25:41
I’m going to take that high interest rate and offset it by return on capital, OK?
25:47
So look at things in that, and that sense, OK.
25:59
Well, the floor is open. You guys can kind of direct the conversation.
26:07
Do I do, I need to tell another story, What’s there?
26:10
This? Video, but I just put a question in the chat, which I’m not reading it over to you. Oh, I see some things down here, OK. All right, thank you. All right, privacy, OK.
26:22
Yeah, that was just the, OK, That’s an admin thing, I’ll go check it out. I’m not sure. I gotta go check it out. That’s the the membership.
26:28
Right, Yes, yeah, I’ll check that out.
26:32
It was confusing when I received the e-mail, but then I didn’t get on my to-do list, I really want to conclude what I started. Oh, absolutely, Yeah, OK. Yeah, we’re putting a lot more content up there, too, So, I’m gonna give it, start getting into things a little preview on the membership area.
26:47
We’re gonna talk about, I’m bringing some people on that I’ve never done before, because I believe we’re gonna get into an area that is new to me, but I understand it to some extent, but I have to bring other people in with a lot more experience.
26:57
And they’re going to be talking about how to place capital in what’s called, let’s say, a limited partnership.
27:03
So, it’s, like, maybe the term would be private placement, it’s not exactly that, but placing, excuse me, placing capital.
27:11
We’re talking about $10 million and more into an asset where you don’t have to be, you know, working at the asset. You know, it does not your job, right? It’s literally passive income.
27:22
So, we have people that we can, we can get on, and do interviews with. And so we’re going to be talking about that. So, that’s going to be in the ultimate membership area.
27:31
And that’s where, yeah, I hear that. That’s an administrative matter. But my real question is, in the very last sentence, Who should I contact? I mean, that was it.
27:41
It was an e-mail from someone, OK.
27:44
How do I do this? Right. So.
27:50
So you want an EIN, Oh, wait. You just need to file with Arizona.
27:55
Oh, you need a failure, your articles, I think you’re reading something else, needs to be filed with the State of Arizona. No business, phone number, I guess. No, you don’t have to do that.
28:08
Who’s telling you that?
28:10
I’m just going off of what you sent me.
28:13
You said, My papers and there’s no number business number to it, and I can’t, I can’t find myself on the State of Arizona Registry, hasn’t been filer.
28:26
Mmm hmm, OK, Greg Schwartzman help, guide me on that help from your knowledge of working with you before.
28:36
OK, I don’t know how to answer you on that one.
28:41
I don’t know, I’d have to go look and I’m not, I’m not doing the call for that, but I will look at your notes here.
28:46
I understand, yeah, I know you’re busy, you ever messaged you multiple times for the last 2.5 months try and get this done finally. Where did you send me a message?
29:01
And the crypto, telegram room, and direct messages.
29:06
OK, I’m sorry, I haven’t seen any, I’m on like 15 different forums, I’m sorry, I’m senior.
29:13
I will look for it, though, I’m sorry about that.
29:16
OK, thank you, John, mmm hmm, hmm, hmm.
29:18
John, this is Jeff, again, May I, I just need to understand, I was a member I paid 599, I let it lapse late last year. I wanted to get back in, is there an annual membership fee, and if so, in what amount and who do I contact now to get back?
29:34
It is and it’s privacy fight dot IO and you can renew there.
29:39
Now, the e-mail I got referred to 299 instead of 599. I wanna get I want to maintain it and re-establish full access, because that’s how I registered at the highest level, right?
29:49
Is the option will be there, is that going to be 599 a year? Because that e-mail referred to 299. That’s what, it was confusing to me. I don’t know, I’d have to say, I don’t know what the e-mail as, I, again, I just, the purpose of my call here is not to talk about administrative access, I want to give you some money. So, I appreciate that. But, let me, Let me focus on the subject of the call.
30:10
I will definitely address this today, OK, and when they appreciate.
30:14
Yeah, guys, I’m sorry if it takes a while to get me. I try to answer everybody everywhere and sometimes I miss some, sorry about that.
30:24
Alright, so that’s another reason why I’m doing this.
30:29
So, all right, don’t know.
30:36
Go right ahead.
30:38
Joan, how are you? All right.
30:40
Good. Good.
30:41
We spoke about a year ago, and Kryptos had been pretty good for me since then, so I’m ready to go forward.
30:49
But there’s been a bit of a wrinkle here lately.
30:53
Can we talk about divorce, OK, let’s, let’s you know be OK if we’re talking about the use of the like separating out the asset. right, Meredith, yeah, that’s that’s a lot of last-minute, yeah, There’s a lot of crypto, there’s a lot of rentals, there’s a lot of equity. So, do we sell all the property or do we transfer?
31:13
Um, the rentals into an LLC, OK, there’s 2 considerations 1 is we don’t want to rob the marital community so I don’t know exactly what the facts are and we can, we can talk about that. So, when I set up a structure for somebody, it’s with the idea that it needs to be isolated from everything else, unless they tell me otherwise. Or unless there’s a need. So, whenever I set it up, it’s by default. It’s going to be bulletproof, and by itself, and isolated, because sometimes I do this for people that are on disability, for example, or that are in a divorce. And they want to be able to isolate things from the marital community or from the disability benefits so that they can’t get their benefits canceled or whatever.
31:50
Um, but yeah, that’s the idea.
31:54
But you have limitations, though, So I’d have to know more about timing and it’d be better to talk about that you know, off, you know, individually.
32:02
Sure, sure. I’d like to do that. So my my other question is?
32:07
I’ve been violent taxes and finally, capital gains but the crypto for the last several years.
32:13
This will be the last year to do it and I’m assuming that you know, I wind down on all my personal Exchange accounts, create new accounts under the LLC, right. So wind everything back up underneath that name.
32:29
Correct. Yes, you can do that.
32:32
OK, can I, can I keep my, can I keep my existing Exchange accounts and just rename them into the LLC?
32:38
It depends on the exchange, from what I understand. They want you to open a separate account. I just do that.
32:44
Yeah, I just learned the other day that Caleb Brown will let you upgraded or convert it. I think. I think they’ll do that. Well See, I’ve still got an ex. I’ve been grandfathered into the old … dot com account, and I don’t want to lose that because I think it’s it’s in my name. If I move it to the LLC, I’ll probably get pinched. You will But keep it because a personal account is not a problem.
33:06
You’re not gonna create a tax liability, even if you have lots of trades in that, and that account even if you get a 1099. as long as you didn’t sell for dollars.
33:14
You’re gonna be fine, Right, yeah, I’ve never taken any Dollars or Fiat at all.
33:19
It’s just everything’s just they’re building up mm millimeter.
33:25
OK, yeah, yeah, we’ll talk. If you want to shoot me an e-mail, I will look, I try to answer e-mail the earliest, and the latest, at the same time, so because I’m, I’m behind right now. So, I’ll get OK. Well. Thank you.
33:47
Whoa, Alright. Anyone else?
33:51
Yeah, do you hear me? Yes.
33:54
OK, my question is what do it, what is the advantage for me to open an LLC for Canada instead of just a business in Canada?
34:05
I would basically kind of the same.
34:09
Well, um.
34:11
Yeah I know that the LLC here is not going to create a new tax liability for one.
34:16
You can, you can divest your exclusive interest in the, whatever investment it is using an LLC here in the states, it’s just that when you want to bring some money locally, you’re gonna have to deal with a bank system there. Maybe you want to have a company there. You can also domesticate your LLC in Canada with your province.
34:35
They’ll let you registered as an extra Provincial company.
34:39
So, you may get the same benefits there.
34:43
When I cash money out, if I want the trade like income, like yeah, like your salary, then I would pay the same tax. Would you would if you take money out as a salary, whether or not you’re in the states or Canada. It’s the same way. You’re sure.
35:04
Yeah, yeah.
35:08
If you use a company like I’m structuring it, you can actually it’s not your asset.
35:13
So that is the one benefit. It’s isolated from your personal tax situation. Whatever that happens to be.
35:19
And then you can decide how you want to take the money out.
35:25
OK.
35:29
Yeah. I thought I would do the same.
35:33
You probably could. My guess is that you could, you could either domesticate an LLC there.
35:38
You can probably create an LLC and they’ll accept it if you domesticated.
35:45
I haven’t done that yet.
35:47
But looking at the roles, it looks like you can do that, OK. I’ll check the rules. Yeah. Thank you. Yeah, Yeah.
35:54
And the alternative would be using partnership. It would be a limited partnership.
35:59
Oh, yeah, OK. Yeah. Some, somebody, some in, in the US to partner with me.
36:06
You could do it that way, but you can also be your own general partner, and limited partner, they let you do that as well.
36:11
What’s the benefit of that?
36:12
Well, OK, you’re gonna need a separate partner beside yourself to make this work, but you can strip the equity from the tax, from your, like whatever, Whatever amount of money is sent to the partnership, you can strip the value of it, the taxable value, and reduce it.
36:31
So I’m not, I haven’t done that on every case. I’ve done that a couple of times.
36:35
But the easier way is just to use an LLC outside the country and then the portion that you’re going to keep for yourself, just send it back to Canada.
36:43
Then anything else. You can literally go from cryptographic currency into an asset when you re-allocate.
36:50
You can use escrow.
36:51
If your escrow agent doesn’t do this, we actually have one that will liquidate the coins for your escrow and send the money to your escrow so that you’re not selling the coins.
37:01
I see. Yeah.
37:06
OK, thank you, that’s a lot doing orange OK. Yeah, that’s that’s another thing too. I mean, I should mention that and then I’ll get back to in a second.
37:14
I just want to mention, you can use escrow to go from an asset $2 and then to another Asset if that’s the way you want to work it and, and if your escrow agent doesn’t isn’t doing that yet providing that service, it’s just because the escrow agent doesn’t understand yet that there’s a whole market out there that he could, he could get into and to be an early provider in that service.
37:36
We actually have the ability to liquidate your coins when you’re putting him in escrow and we can deposit the coins into your escrow in dollars and you won’t have sold them.
37:49
OK, OK, all right, well, all right, thank you. Yeah, sure thing.
37:56
Go ahead, Anna.
37:58
Yeah, so her, her, her question actually reminded me of something. So, if we go ahead and do the, I think you and I were talking about doing a one in New Mexico, right?
38:07
You’re right.
38:09
And so, let’s say, we’ll go ahead and do that, and then I ended up leaving the country, for whatever reason.
38:16
Or, you know, six months or a year or whatever or more.
38:19
Can I keep it there, and or do I have to basically move it to the country that I’m moving to?
38:25
Yeah, the company, it can be registered anywhere on the planet.
38:27
It doesn’t matter where you are and thanks to technology and the way banks operate today.
38:32
Yeah, you keep it New Mexico, you can go anywhere you want, and just log on to the Internet, You’re probably never even gonna go to New Mexico.
38:39
Right, and what’s really nice about New Mexico is they give you this PDF image of a certified copy of the articles, which is not a certified copy of the article.
38:49
It is a copy of the certified copy, two different things. And, in years past, the banks would not accept that. Now they will.
38:58
So that’s kinda nice, so with New Mexico, when I finished the order, I can have, I can have that available, and just e-mail it to you. And then when you create your account, if they ask you for it, you just upload that document, and they’ll accept it as if. it’s the actual certified copy. OK, yeah, that’s great. So, you’re not bound by any geography, then.
39:16
Yeah, you’re not OK, Thank you.
39:29
Hi, John. I have a question.
39:31
Yep, I currently have some crypto assets and in my name and I and I formed a corporation with you and What’s the best way to get them now into the corporation?
39:44
Are they in an exchange?
39:46
Know they’re just in hard wallet on my computer I’ve done everything through hard wallets. I haven’t I’ve only used an Exchange to Transfer Fiat into a stable coin. Sure, OK, The only reason to move them really is if you’re going to exchange them on a platform. Where are you going to liquidate them for dollars?
40:02
And then you would just go from your, let’s say your Bitcoin wallet on, your Hard wallet to your Bitcoin wallet at the, at the Exchange, just move them.
40:12
OK, so as I’ve done is because I was under the impression that the safest place to keep my kryptos was in my own possession versus storing them as at an exchange. Can you speak about that? Yeah, if that’s how, you know, however you decide that, the most secure way to manage your kryptos. Yeah, it might be a hard wallet. And if that’s the case, Well, then it’s in your possession.
40:36
There’s no, there’s no really need to title your hard walad contents in a company.
40:43
OK, the only reason I would do that, it would be, let’s say I’m trying to, I’m trying to get some financing, Right, and maybe I need something on my balance sheet.
40:54
So then, I would take some gold and maybe some Bitcoin and I would put it on the balance sheet and then maybe the other party needs to see it somewhere right, like a custodian.
41:05
Other than that, I don’t see any need to identify your hard wallet or your gold coin in your sock drawer, as being owned by your company, nobody cares and where do you register that.
41:14
You know, there’s no third party custodianship, like with an exchange.
41:20
OK, then my next question to wrap this up would be that if I set up an account with Caleb and Brown, do I want to leave my purchases there or do I want to bring them on to my Hartwell and I would be setting up that account under my corporations name.
41:40
There, it’s, it depends on the use of your money.
41:45
Why are you doing that, I mean, use it, however you see fit.
41:50
I don’t know why, why you do either way.
41:55
They’re both ways of holding your money. What is your purpose?
41:59
That’s what I’m trying to look. I’m just trying to learn my way through this. So what’s more secure? I mean, if some people don’t feel comfortable having a third party.
42:10
Hold the coins, So if you don’t then, you want to use a hard wallet.
42:17
So it just depends on how you want to store your money, just like anything else.
42:22
Thank you, OK.
42:30
And, I think, Terry, you want to ask something?
42:32
Yeah, just going back to where you were talking about net qualified escrow agent.
42:36
Now, I know you’ve mentioned in the past that you have access to a qualified escrow agent, is that still true?
42:43
So if we, when we get to that point when we need one, just contact you and you can put us in touch with someone. That’s correct. Yes. And my suspicion is that while we can do it, we’re gonna do it for, you know, For as long as we have a market there, I think there’s a big market for it. And it’s standard industry fees, rates, whatever. Probably after this year, escrow agents are realized that they’re missing out on a big chunk of the market so you’re eventually going to find a lot more agents that can do it.
43:09
OK, yeah, All right, hmm, hmm.
43:21
Are we out of questions?
43:22
I know, have one question.
43:25
Um, no accompany, you have to have a reason for it, like you can’t have, can you as a company, with everything in it, like yeah, investment company, trading company, but everything in it. And how do you justify buying a garden? Like, for example, that’s an example.
43:46
Well, I can register a company then.
43:50
And I can say that it’s organized for all lawful purposes.
43:53
And that’s legally sufficient.
43:55
I can then do whatever I want with it. I can also register a company.
43:58
So that’s telling them nothing. That’s, that’s disclosing, that it’s just a company.
44:03
I didn’t say that it’s going to be doing anything as you can do anything at once is what I said, OK, Yeah, if you announce a company, if you announce the existence of a business, whether it’s registering with your state or government, or publishing in the newspaper, or announcing it in some way, and then you operate that way, remember, a company is the name of an association.
44:22
What is your association?
44:24
Maybe the association has a purpose, and maybe it doesn’t.
44:28
But there’s no rule that says it has to have a purpose.
44:32
I have a purpose, when I’m doing one, but I can just set up a company, I know people that set up companies and then sell them a year later, as a shelf company.
44:40
I mean, I guess that’s the purpose.
44:43
But I know, I know, they want to ask, like, if I do want to Pennsylvania, it’s not good enough for me to say it’s for all alpha purposes. They wanna know what’s more, that’s why you see a lot of my registrations. You’re gonna see that ice I put in there that, for all lawful purposes. And including, but not limited to investing in real estate.
44:58
Because real estate is kind of a nice backstory that you can tell anybody and it’s very easy to talk about And it really ends a conversation because it could be boring Yeah, it’s really not, It’s not really someone else’s business. Unless it’s your partner.
45:10
You know, your business partner.
45:12
Yeah, OK, Thank you.
45:15
OK, Yep.
45:21
All right, you know, when I when I, when I talk to you guys individually, you have way more questions. And you’re asking me now 1 1 person at a time. So don’t be, don’t be shy.
45:31
Question, can you hear me? Yes.
45:33
So like if I have like a block phi and its corporate and then I wanna I’m limited to like the amount of coins I could use my wife’s exchange which personal can I moved back from corporate to personal and then corporate, the coin Yeah, yes. You can coin to coin account to account husband a wife sure.
45:55
That does not change beneficial interests. It doesn’t create a tax liability.
46:01
Yeah, yeah. I mean really.
46:05
Going from coin wallet to coin wallet really doesn’t create a tax liability either because again, there’s no I mean, it’s technically, it’s a barter and technically, the IRS will ask you to report it in terms of dollars, but it’s not reportable Unless You’d report it that way.
46:25
So, yeah, I mean, but what’s kind of nice is, what happens if I transfer some coins to my son?
46:31
Well, my son lives with me, so I’m not really leaving the household, so the beneficial interest still remains the same Because he’s he’s not old enough to, you know, enter two agreements himself.
46:43
So, I would think that anyone who’s in your household, that you transfer it to, is not going to change beneficial interest.
46:55
Any hypothetical examples?
46:58
Beneficial interests, estate planning.
47:04
What about when I set up a company?
47:06
And something happens to you as a, as you all, always tell me, what happens if something happens to me? And I always ask what that?
47:14
What might that be Getting lost at sea, falling into a coma?
47:19
Uh, you know, whatever Dieing, what you want to do is, because you’re going to a lot of trouble to build up a structure to manage, let’s call it your treasure, and maybe you want your children or someone else to benefit when you no longer need that treasure.
47:35
You want to, in my opinion, you want to bring them on board to that. You want to involve them in some way, so they understand what it is, where it came from, have some appreciation for it, and and also know how to use it. Just like if, if you gave someone a helicopter for his birthday, chances are most people, you know, don’t know how to fly a helicopter.
47:50
So how would you really do that?
47:52
Well, you would say, Hey, Joe, next year, I’m gonna give you a helicopter for your birthday. Here’s a manual on how to fly a helicopter. Would you like one, you know? And then Joe can learn how to use the helicopter. So when I give it to him, he’s not going to kill himself, or somebody else.
48:05
So so when you set up a company, it is made as my intent that the access to the treasure that it’s holding can be passed on simply by passing on the access to the company.
48:20
And the credentials, Simple version of that, one million dollars in the bank of the LLC, in the bank account.
48:27
And I’m dead.
48:28
And my kids go in my personal effects and they look in the book I have in the vault.
48:33
And it says, here’s the login and user ID for the bank account, right?
48:37
Or there’s my favorite book that I was reading before I died. And as a bookmark that I always use is a blank check for that LLC account.
48:47
And they pulled the blank check out.
48:49
It’s not even signed and they write out. They can see online how much money’s in there. They write out a check and clear the funds somewhere else.
48:57
They forge my name on the check.
48:59
And done deal, now they have access to the money, it’s that simple.
49:03
So, what, yeah.
49:06
What’s that, I said, would you repeat this? Yeah.
49:10
What I’m what I’m suggesting as a way to make the transition of the user access to your wealth you’re creating with your company seamless with your heirs.
49:21
And the most effective is to do it with credentials, credentials meeting, like if my wife was assigned for a company that I create and then she’ll say, oh, by the way, here’s the access code to the bank account. And so when I want to use the company, she’ll never use the company. I’ll just go in User Access, Kono login, and I’ll do my transactions, but she’s the signer on the account. Nobody cares.
49:44
We, we have, we have credentials there that we can pass around.
49:49
So you would use those credentials. So that way, let’s say both of us disappeared.
49:54
Well, then, we want our children to be able to access that. Well, they would know how to do that. They may not have the credentials, but they know where to get them.
50:03
So I don’t, I don’t have to go through probate. I don’t need to put my children’s names on anything. I don’t even need to put my name on anything. I need one person’s name.
50:12
I know, that sounds simple. It’s simplified, but there’s a lot more to it, but I just want to introduce that concept to you.
50:19
Yeah, mm, hmm. Yeah. It’s very diplomatic.
50:22
Need a dictionary. Thank you.
50:24
OK, and Terry?
50:31
Did you have a question, Terry?
50:34
Yeah, let me see, yeah.
50:38
Oh, here we go. If I’m off topic here, so if somebody wants to go off of what you were talking about, I can wait. Sorry.
50:47
Good, so, I can throw at me when he got OK.
50:51
So, all right.
50:53
So, I know you’ve talked about not having different assets in the same LLC, so right now we have an LLC, crypto trust with you, and looking at, down the line, having a couple of different rental properties.
51:09
So, I’m assuming I should have those in a separate LLC and then a business.
51:17
So, I guess my question is, is how do I set those up?
51:21
Is it going to be exactly the same as what I have now, the LLC Crypto Trust, just doing another one of those, four, the business, and another one of those to keep, let’s say, three proper rental properties in.
51:36
OK, give an example, And that’s what you’re, What you’re talking about is investment, real estate, let’s call it single family residential, so you’re going to buy and rent out to somebody then another one is a business, so let’s say it’s a restaurant.
51:49
so definitely I would have two different companies and it’s OK operating agreement.
51:55
I mean I would I don’t need the part about the blockchain trust, I mean, I liked the idea of the PMA as the owner, you don’t have to do it that way. If you have a real partner, you can make them the you can you can have you yourself and their partner, OK.
52:07
Or you can create an association an unincorporated association between yourself and your partner and named that as the owner of the LLC, So Yeah.
52:16
Different companies, for two different types of assets, OK, and then how do you, how do you register it, so let me give you a couple ideas.
52:29
OK, so, I would probably not have one LLC for every piece of real estate in the same market, that’s the same kind of property, like if I bought an apartment complex, I’d probably have one LLC for that and I got three single family residential. I would use one LLC for those three.
52:47
OK, another way to do it, and I know some of you are familiar with using a series, LLC, you know, ages, just on the fly, you can just create another LLC by naming it.
52:56
And then it’s part of the, the main, original, LLC.
53:03
I’m familiar, OK. Explain. Yeah, a series just is, is a convenient way for investors to do what you just described?
53:10
To have a company, and then, for each asset, to definitely set up a different LLC without registering with the state.
53:19
Every time the state charter says, it created a way to do a series of LLCs within that first LLC, so that it can do what you just said, have one LLC.
53:35
OK, so, I don’t have to register with the state, so, then, is the only way I’m keeping track of them being separate is just in the accounting area. Yeah. Yeah. And that’s important because if it’s something you’re going to be, Yeah, you want to, each series, LLC, depending on how it’s written and I don’t specialize in that. I can find out information.
53:53
It’s very simple to do this, but you have certain benefits on how you, you write up each operating agreement, but let me, I’ll give you my version of this.
54:03
It’s the same as a series LLC, but what I do is, I use the address of the property as the name of the company.
54:10
So, for every piece of real estate, I’d just call it, you know, 123 Elm Street, 12 56, Elm Street, LLC, right.
54:19
And I do not register that company.
54:22
It’s just a name, OK.
54:25
The reason being is that it’s a company, if I say it, is, if I need it to be registered somewhere, I can simply do that. And chances are, no one’s using that name because it’s an address. It’s a street address. So it’s likely going to be available.
54:38
Yeah. So, so I do that for convenience and saving money and time. So, I don’t want to have to create a name every time, and I want to keep track of stuff.
54:45
So, my asset literally is the name of the asset.
54:50
It’s so it’s easy and I don’t have to register it, and I don’t have to file returns for it.
54:57
If I’m collecting rental income, then I want to have one company that manages the cash flow from all my real estate investments.
55:05
So, my real estate holdings are titled in whatever company or companies or grouped however I want to do it. And none of those get any money, so that means when I do an LLC for a property or a trust, I don’t need a tax number for it.
55:18
I just need to hold the title.
55:20
And then when the money comes in, it gets paid over to my other company and one company handles all the accounting.
55:26
It’s much more simple to do it that way.
55:30
OK, I think I followed.
55:34
I can give you more examples.
55:36
Yeah, do.
55:37
please, There’s Yeah, I mean, the name of the prompt, the title holder, is simply established by quitclaim deed.
55:45
So if I if I’m buying a property and I’m gonna go, I’m gonna buy it in my name, I’m going to make the offer and my name and then a week before the closing, I’m gonna say, Oh, I’ll make sure we, I’m going to make sure that its title in the name of 123 Elm Street LLC.
56:00
And they’ll say, OK.
56:01
Well, OK, yeah.
56:02
Oh, I can roll it out, and nobody cares, OK? So they don’t even check to see if it’s registered or ask, where does it?
56:10
It doesn’t matter if it’s registered, but, yeah, they will check and they will ask and then say, look, it’s a company.
56:15
Do your job, or get someone else to do it. And, you know, that sometimes we have to know that we’re gonna deal with, hey, yeah. So don’t be intimidated by other people. if you have chosen a way to manage risk a certain way you’re the boss, OK? Because you have all the liability and some attorney can’t tell you what to do. I’ve had so many attorneys trying to push my client around and they’ll call me back. The kinds of the attorneys said, I have to do this.
56:40
And I’ll say, look, you’re the boss, It’s your money. He’s working for you.
56:44
And just because he went to law school doesn’t mean he’s your boss, and you tell them, know, 1, 2, 3, and they always do what they’re supposed to do, or they get fired.
56:53
You don’t need them.
56:54
So, uh, yeah, you can use the name of a company to own the title, to real estate, and if for some reason, let us say when you go to sell it, maybe you have, maybe you want to deal with the revenue this way, you want you want to sell it three years from now. And there’s some money that come into the owner, which is the LLC then you would go on and register the company.
57:19
Wherever you can put it, in any state, you want, OK, Other states don’t like this.
57:24
By the way, agents don’t like this, and attorneys do not like this, but they have to deal with it because it’s your choice, OK.
57:32
Then, you get a bank account for it, and you could do that quickly.
57:37
Right, at the closing, you’ll get a check, or a wire transfer, and then the funds are cleared.
57:43
and you move on.
57:45
That’s one example.
57:46
Now, sometimes you can pay the funds out.
57:48
I don’t wanna get too far out, but it doesn’t have to be so cumbersome that every time you deal with an asset, you’ve got to do a new LLC.
57:57
You could use one. I use one LLC, I’ve been using it for years. It’s, it’s managed millions of dollars, it’s expired, it’s been like that for probably 16 years or 17 years.
58:08
Expired charter from day one. I never renewed it.
58:13
Never had a problem, I’ve never needed a new bank account. If I need a new bank account, I’d have to go register one in a different state, because I’m not going to pay all the fees. You know.
58:21
It’ll be, like, thousands of dollars, OK. Yeah.
58:24
So, that one LLC, then, you’ve used for multiple real estate business, Yeah. Different businesses use it for many, many ratio mm while, I mean, to me, that makes life a **** of a lot of, Yeah.
58:37
It’s just literally, go get one of those paper ledger books from Barnes and Noble, and keep a list on paper. That’s why I like do. I keep a list on paper of things. I do like that.
58:49
And I keep in a fireproof back sometimes I put it in the vault.
58:53
Sometimes, I’m too lazy to put it in the vault, but, you know, I just I just keep in a fireproof bag, and I literally, you know.
59:00
I like to keep track of things like that on paper. I like to see and carry it around. I don’t want to turn my computer on.
59:06
Sometimes. that’s a, that’s how I am, too. Yeah, yeah. So, Yeah, so, So this doesn’t have to be some onerous thing. Oh, my gosh. I’m going to buy an asset.
59:15
You, know, put things together that have similar risk, and and then group others, you know, group A group at apart.
59:27
Yeah.
59:28
It’s kind of like a guess. I mean, what has what has similar risk? I don’t know.
59:32
I mean, if I buy two single families in my neighborhood to run them out somewhere in my neighborhood, that’s different than neighborhood a few miles away, where mostly there’s bars on the windows, right?
59:46
So without even me checking, there’s the higher there’s a higher crime rate, right?
59:50
So, I might have even a different insurance contract on those things, so, I probably would use a different company.
59:57
You know, I’d probably separate that risk out a little bit.
1:00:00
OK, yeah.
1:00:01
All right, Thank you. All right.
1:00:10
Notice on script that, that you’re not supposed to when you open up a bank account, You’re not supposed to give your Social Security number made. The mistake of Giving them my Social Security. Oh, no. That’s OK. You have to.
1:00:24
They’re not going to show you. Yeah, It’s a good job.
1:00:32
Yeah. What’s that, Karen?
1:00:39
It sounds like you’re breaking up there.
1:00:43
John.
1:00:44
I was asked with a score agent when they transact for you.
1:00:54
Does that get registered?
1:00:57
The escrow agent is going to reports to the IRS.
1:01:01
They are mm.
1:01:04
That’s why we’re doing this similar way an exchange.
1:01:07
Yeah, whatever information you give for a transaction is going to get reported. So what we’re doing is controlling the way it’s being reported.
1:01:17
So what I guess what? Debbie, what’s the benefit of using the NetSquared?
1:01:23
Well if you could do it yourself. With the loan, OK. Escrow is a good way to really protect yourself because it’s a, it’s a neutral way to pool all the money for the down payment. The terms of the contract to sit at the table, negotiate final things. Like real estate is a great example.
1:01:41
I mean I’m an escrow on a deal and I have the property inspected and I do my due diligence and maybe I might want to change a term or something in the contract.
1:01:53
You know, so while it’s an escrow I can do that, everything is pulled in a third party, a neutral party, so we have to perform. So, the neutral party makes it to where both parties have to do what they say.
1:02:08
Right?
1:02:08
Like, for example, I ever see these, um, you see these movies where they do the drug deal and the guy with the suitcase in the cache and the other guy with the drugs, you know, and they’re going to shoot each other stuff. You know, if you don’t have escrow, you got that. Turn out to OK. I mean, I know countries that don’t have ESCO countries.
1:02:31
I’ve been in other countries before and they’re like, what’s that?
1:02:34
You know, like, Oh gosh. Yeah.
1:02:38
You have to re-invent the wheel there.
1:02:41
Sure, you don’t have a concern with that. But what do you think about the I think it was Homeland Security Partner.
1:02:47
It’s cashier.
1:02:49
For crypto. Just for reporting.
1:02:53
Whatever. party forever, it’s just a sales pitch.
1:02:58
You guys got, or, I saw that article about, It’s good. Yeah, and everybody has to ask me. And I go, yeah. Well, nothing’s changed. It’s just another sales pitch, Nothing’s changed.
1:03:10
It’s funny, yeah.
1:03:13
Yeah, on the signer of an account, I mean, this is how we have it. I mean, ever since 2000 around there, you have to give an SSN, or at least a credit phone number to be a signer on an account. There’s a lot of reasons for that.
1:03:28
It’s a way for the banks to help each other out. So, let’s say you owe the bank some money for like some fees.
1:03:33
You didn’t pay, like some bounce checks or something, and you go to it’ll, it’ll get tagged your signature, it’ll get tied to your name and a database called Check systems.
1:03:41
And check system is like Equifax Check System is under the Fair Credit Reporting Act. But people don’t normally talk about it until you have $100 fee, you owe the other Bank, right?
1:03:52
And then the new bank says, oh, well, we can’t open your account to pay this other bank. So that’s one reason why they do it. But they also want to collect your ID, because whatever you give the bank, they can they can give to whomever.
1:04:03
So everyone’s a suspect in money laundering.
1:04:05
That’s another reason to get your, you’re identifying information, but that doesn’t mean you have a tax liability.
1:04:12
Now, you know, even if you apply for an EIN, and use your SSN in the application.
1:04:18
That doesn’t create a tax liability. Everybody goes, yeah, but it’s connected to its tag. It’s tied to, no, it’s not.
1:04:25
It’s, it’s when the person is the account holder and gets it, 10, 99, for example.
1:04:32
That’s when there’s a concern about if something should be reported.
1:04:38
OK, just talks about Skype, OK.
1:04:43
Where do they say it on Skype?
1:04:47
Am I going to put someone there to scare everybody?
1:04:52
They put a note, like, Oh my gosh, did you guys hear the latest? Like, what?
1:04:57
You know, there’s no reason to be afraid of the IRS. Just be pragmatic and don’t lie to them.
1:05:03
You’ll be fine.
1:05:04
I mean, I’ve got cases right now where, it’s so shocking.
1:05:08
They are the biggest liars ever.
1:05:12
They will falsify records, it’s, it’s nuts.
1:05:15
But when you do it to them, you know, you’re in big trouble, so.
1:05:26
John? Yes.
1:05:28
Oh, OK, Well, here I have a question on the same. what you just said about Be Pragmatic, and don’t lie to them.
1:05:39
So, here’s a little story. I sold in 2020.
1:05:46
Something at 7000 …
1:05:50
5000 on Gemini in the dollars.
1:05:54
And I have this dilemma right now, because if I, if I report that, then they will star two.
1:06:04
They, they, then, they will ask me to show other record switches, a lot of other trades, uh, between the kryptos, who’s going to ask that?
1:06:18
The IRS?
1:06:21
Ah!
1:06:22
I ask that if they do the audience, right, if if I say sure, they can they could subpoena the record sure, and they could run the software. Yes.
1:06:33
So, so, they us now, to say yes or no, on there, and that’s my dilemma right now, because it’s only seven KM Crockett, five K and Gemini.
1:06:47
Both of this exchanges said that they will not report.
1:06:53
It’s your responsibility if you want to report, OK. I, I do it like this. I get this question a lot. So, I suggest that if you get a 1099 for those transactions, then say yes.
1:07:08
If you don’t, then say, no, mm, if they’re not gonna get notified, then say no, if you’re losing sleep every night because you said no, then say, Yeah, Yeah. Keep in mind.
1:07:23
That is not a financial question.
1:07:25
That does not lead to a tax liability and you can still be audited anyways and they could run the software and they could say, well, you should have told us this, and then you would end up in a situation where, This is what I do when I get a 1099 from someone’s got 1099 because it trades mm, they didn’t take dollars out.
1:07:42
I write a letter to the IRS and get them corrected.
1:07:44
So, if the IRS does an audit, you would just do the same thing because between coins is not taxable mm, they can say all they want. They can even send you a bill for underreporting.
1:07:53
And then I would take that and send a letter to the secretary of the treasury and say, look, this is erroneous because the beneficial interests did not change.
1:08:05
There was an article in somewhere around Internet, said that if you say no, but you actually sold some, then it says criminal activity could be either. It could be, the penalty is five years in prison for lying on a 10 40, and they could say that.
1:08:28
Hmm, hmm, hmm, hmm, yep, So that’s, I’m saying, it’s, you know.
1:08:32
It’s a risk, I seriously doubt, that would be in a penalty imposed on you, and let’s say, I want to try to make an example out of somebody.
1:08:39
I haven’t seen it yet. So I think, you know, here’s what’s going to happen, I’ve seen so many, literally thousands of IRS cases, literally, and they only want money.
1:08:52
And lots of times they want more than they’re entitled to, but uh, they just want money.
1:08:56
So what they will be happy to send you is an adjusted tax return examination changes notice and underreporting notice and penalties, that’s all they care about, because they want to use that to take your money.
1:09:10
Millimeter, hmm? And so, they’ll take anything that’s, you know, that’s in your name, but they can have access to. Let me give you guys an analogy.
1:09:19
So, let’s say I trade litecoin and bitcoin, and I did that for three months. And then, if I evaluate the dollars before, and after, let’s say, my dollar value double. So, now I have twice as much dollar value from just going from litecoin and bitcoin, because I got lucky. And I, you know, I did my thing. All right, So.
1:09:39
Let’s say that the profit is 100% I doubled my principal. And presumably, I owe a tax on it.
1:09:47
So how would I pay the tax?
1:09:49
I paid dollars, right?
1:09:51
That’s on my account until it tells me, I tell my accountant, but I don’t have dollars.
1:09:58
Am I required to go get some dollars, so I can pay that tax?
1:10:03
Yes.
1:10:05
No, I’m not.
1:10:06
That’s right.
1:10:09
So.
1:10:12
This just so happens that most people have dollars, you know, and they don’t give it much thought, but this tells you that it’s not the coin that’s taxable. It’s the dollars that are taxable.
1:10:21
This is what tells you this.
1:10:22
It’s just logical And Now if they sent me a bill and said We would love to have some Bitcoin because Over the last couple of years, We enacted new legislation and adopted a new set of rules. And then you can see it’s published in the Federal Register, and it was open to public debate. And we adopted a new law that says you can pay your taxes in Bitcoin if that were to happen.
1:10:42
Forget what? I just said mm, hm.
1:10:45
It might happen that way, in fact.
1:10:47
I think we are heading to that point, and I think what’s going to happen is I think the whole reason for the blockchain and that technology is so that we can be taxed not on our financial income, but on something that’s Just as measurable. It has a similar metric and that would be human activity. They want to taxes for human activity.
1:11:09
That’s what Bitcoin and crypto there is all about for them they created it.
1:11:13
OK make no mistake Satoshi Nakamoto is JP Morgan and China it’s not some guy. And I believe they want a tax not only not your income.
1:11:23
They want to tax your production of carbon because it measures your human activity.
1:11:29
But if they can tax you for carbon, they can also tax your, your lamp, your lawnmower your cat, your car, your pool, they can tax, everything, they can tax your house for its production of carbon, OK?
1:11:44
That’s what’s going on. So be aware of that, the blockchain is, is, you know, some of the blockchains are going to be like that. Some will not.
1:11:54
So if I can ask another question so which one will not?
1:11:59
I don’t know, I can’t tell you what they tell me And what you all know that XRP is a World Reserve currency, right?
1:12:06
That’s the next World Reserve currency.
1:12:09
It hasn’t yet been adopted as that it’s pegged as that.
1:12:13
Yes.
1:12:17
And steller, is going together was XRP.
1:12:24
Is it still does steller has any?
1:12:27
Um, what do you mean going with?
1:12:30
I don’t know, I don’t know, I couldn’t tell you on Stellar, but what is, what do you mean it’s going with, Is it, it’s yield, it’s usually correlated, stellar and …, maybe they correlated also, in the designation, in the future. Financial, I’ve never heard that, and I haven’t recently done too much research on Kryptos themselves. I’m a bit behind when it comes to that right now.
1:12:58
OK, thank you, John, you’re just, you’re answered my question. Sleep well, All right, please. Awesome, yeah, definitely, you should be sleeping well, I mean, don’t worry over this stuff.
1:13:11
Yeah, but better us to use the money than those guys. Look what they’ve been doing with it so far.
1:13:16
Sure, thank you.
1:13:22
Alright, so, I am, this is being recorded, So I know some of you guys just joined, and I will make the video available.
1:13:28
I believe it’s going to be on the YouTube channel privacy fight.
1:13:34
So I’ll, I’m probably gonna chop some parts out. But other than that, it should be. It should be up there probably tomorrow.
1:13:42
And I want to do these every week and I may have some special ones, but for right now, we’ll do it every week.
1:13:47
And I appreciate your patience.
1:13:49
I know I’m behind on e-mail but um, I’m working feverishly 12 hours a day at least sometimes 16 hours a day to get through all that.
1:14:01
Thanks, John, OK.
1:14:05
All right anymore, I can’t think of any stories, don’t get me started, though, because I might tell you more stories.
1:14:13
John, OK, Alright, appreciate y’all attending. I hope this is good content. And guys, about the memberships, I will take care of that promise.
1:14:24
Sorry, I had to wait so long.
1:14:26
Oh, somebody asked me some questions, yeah, the IRS can? Yeah, go ahead.
1:14:31
I just was curious. What did you mean that the XRP was the World’s Reserve Currency?
1:14:38
like? Didn’t they have like a lawsuit or something more?
1:14:44
Probably a lot of that stuff is for show and positioning.
1:14:48
Like, Oh.
1:14:49
Yeah, like the, who, What was it, recently, it was, um, SEC attack somebody.
1:14:54
What was it, Just kidding?
1:14:59
XRP.
1:15:00
Yeah. Yeah. Yeah, OK. So that’s all right. So well, yeah. I think that that would, the purpose of that was to let the big money in.
1:15:06
I could be wrong, you guys can check the blockchain and see if they did that.
1:15:09
But I think they do that to disparage the price and then the big guys come in.
1:15:14
They get their buddies in, bought it, I think probably, OK.
1:15:20
So it’s something we should own, right or buy within the yellow. I think it’s a good bet, yeah, XRP is a good idea, right? I mean, it’s gonna, it’s gonna go up a lot against the dollar, and that’s gonna reach some sort of plateau. I don’t really know what that is.
1:15:33
But it will be the World Reserve and I believe, I believe Bitcoin will be the currency of, of nations.
1:15:41
I mean, I think that was decided a long time ago. Pulling it a store of value, I guess. I don’t know. Yeah, Well, isn’t gold, does that sound familiar? Yeah, yeah, yeah.
1:15:56
Thank you so much. I just wanna, like listening to everyone else that you can go with it, that let you get the questions answered. Sure, Yeah, there’s one here about waiting to borrow your own money on the insurance policy. It depends on the maturity of the of the policy, so you have to figure out what that is. I believe you’re looking at 1 to 2 years, so it does take some planning ahead. That’s why I say, use it for what it’s intended for. It is for managing risk.
1:16:19
It’s not a, you know, put some money over there and make 8%, That’s pretty boring.
1:16:25
Um, the IRS can audit, please, trust me on audits, they will do everything, They, they have no limits, OK. They have limits, They don’t abide by them and they’re the IRS.
1:16:37
Not to scare you, guys, I’m just telling you from experience and they are manageable, OK, and I’ll just tell you a quick story on that one, but, um, as far as IRS audits, they can ask for everything.
1:16:48
Um, one of the, one of the ways I mitigate the, let’s call it, the problem of audits, is I give the IRS one meeting, I don’t do 2 or 3, 1 meeting, that’s how they get.
1:16:59
And I make them conclude the meeting and agree that everything we complied with, OK, all the disclosure request.
1:17:06
In some cases, I have a court reporter sitting there and taking the transcript.
1:17:10
That way, if they try some funny business, I can, I can pound them over the head with what they said at the meeting.
1:17:17
Which is a recent case I just had about a year ago, where the IRS did that.
1:17:23
And luckily, I had it transcribed, and I told my clients exactly what to say at the, at the audit, and they did exactly what I told them.
1:17:29
And the IRS went and lied to the judge and said we used the Fifth Amendment, which we never did.
1:17:35
And I use the transcript, and I filed a motion to dismiss, and I said, See, judge, the transcript. If you read it nowhere and there was a Fifth Amendment used, we answered all the questions.
1:17:44
And moreover, I told the judge, you guys all know that the US constitution has nothing to do with an IRS audit.
1:17:50
And they just said nothing. They didn’t even respond and then about three months later, they dismissed the case.
1:17:56
So, that audit took awhile, took about a year and a half, but when I, when I do those, we go there once, Now they had sent questions in the mail.
1:18:04
So they didn’t like my answers, but I gave them one meeting, and the transcript is what did it. So we are the Don’t fool yourself. These guys will just, they can go to the court for anything, but you gotta be careful with them.
1:18:15
You want to you want to comply with the audit but you don’t want to be so co-operative like do whatever they tell you OK.
1:18:25
Quick question Someone earlier mentioned About the LLC’s being outside of the country, since I have mine yet and I’m getting ready to leave the country, should I open it outside?
1:18:37
It will matter where you’re located. It doesn’t matter where you’re located, because once it’s registered, you can open your account. And from anywhere in the world, as long as you have access to a computer.
1:18:47
You for, you could use your bank account, yes.
1:18:52
It’s not going to matter, OK.
1:18:55
Basically, you’re going to open an account with the photos.
1:18:59
OK, I’ve heard other people talking about how difficult it is to open account VR a bank account.
1:19:07
Over the Internet, or facsimile. It’s veteran her, it’s easier and personal.
1:19:13
It could be, from I’ve for 10 years, we’ve been using online accounts, 10 years. We’ve been it for 10 years. And, you know, what’s funny is? Yeah. Yeah, it could be true for some people like that.
1:19:26
But actually, one of my clients started doing it, a few of my clients started doing it over with Chase Bank, like in around 2009 or so, and I didn’t even know you could do that.
1:19:36
Oh, yeah. Anyways, that’s how I knew we could do it and now, now, recently, it’s become even easier.
1:19:41
I did see a trend recently where they’re saying Come in the bank, but I don’t know if that’s a real trend. It may have happened just a couple of times.
1:19:51
OK, so with you, I’ve tried to open up the The Crypto Trust and the LLC.
1:19:58
Is the LLC able to purchase property anywhere in the world?
1:20:03
It can if that jurisdiction will recognize it.
1:20:07
So like, for example, in Canada, you’d have to check and see.
1:20:11
The way you would check is, it would be their version of the County Recorder’s Office. So In Canada, it’s provinces.
1:20:20
And there’s a public records.
1:20:21
It’s affiliated with the court system, so you could talk to a barrister there, or solicitor, and ask them how you record deeds to property and an idol holder of real estate.
1:20:33
What, what are the limitations on, who could hold property in Canada?
1:20:37
And I think you can have a foreign company, and then I believe you may have to domesticate it, sometimes I don’t know. So I would ask someone there.
1:20:45
OK, well I probably have to purchase, this is an island down, and Caribbean off of mainland, on Earth is still ruled by Honduras.
1:20:57
And the only thing over half an acre, you have to have an LLC.
1:21:02
Oh OK. Create an LLC down there was this one up here.
1:21:06
The one I’m praying with you, sufficient. That’s kinda what I’ve asked my dad. I went down according to that.
1:21:13
OK, well you have to go by the local people, but I would start with what I want to do. And then try to do it. Yeah.
1:21:19
If the local people say now, or you have to do it this way, then you kind of have to do what they say. Yeah. Just pay for it.
1:21:26
Just have a set of feet, Yeah.
1:21:29
Yeah. You can do what you want, but the problem is, you may not have the same protection, you know, or, or they might invalidated or something.
1:21:36
So, that’s how you know. I do.
1:21:40
Yeah, I do recommend using a local companies.
1:21:43
I mean, when I go into a foreign jurisdiction, I use the joint stock company.
1:21:47
And if I don’t, if I don’t want to have the tutor under my main, I open with you. You could, you could do that, you could. But, but again, Yeah. It sounds a creative at all, but what’s the purpose?
1:22:01
What are you really trying to do?
1:22:02
Remember, a company is just a way to manage risk, so you don’t need to stack companies together somewhere else. This is what it’s for.
1:22:13
So, OK, I can just take it from me later on No, Run it through … or whatever, OK. That’s a very, very basic way to understand. Absolutely. So, so, this is the rule, OK.
1:22:27
The general rule of of managing at risk, you want to separate your personal risk, which is wild and crazy because you can get accused all kinds of stuff. Right? You can be sued, you can be indicted, You could be beat up. You could be accused of drug dealing, all this stuff.
1:22:39
But a company or a trust, that does nothing, but hold the title, has no risk.
1:22:45
Except what’s in that thing it owns.
1:22:47
So you want to separate your interests.
1:22:49
And the way to do it is, you can do this anywhere in the world.
1:22:53
You own an interest in the company that owns the property, and you share that interest with someone else. So let’s call it a partnership. So we have the name of a partnership. And sometimes you have to record a partnership deed in the local jurisdiction.
1:23:10
And then, so it’s me and my Uncle Bob, and we own it now, Uncle Bob and I have no joint liabilities together at all. We don’t do anything together that, he doesn’t even live here, right? I just call up and said, hey, can I put your name on a thing? He’s like, yeah, sure!
1:23:22
So I put his name on there, so mean Uncle Bob, who’s a real person, we’re partners and with an undivided interest, and the name of the partnership is the title Holder of the property.
1:23:32
Now it’s locked up.
1:23:34
Now it’s locked up because any personal liability I have would never attached to that, because it’s not mine, it’s not liquid, and there’s no divided interest, OK.
1:23:48
OK, thank you, sir. All right.
1:23:50
So, um, I guess that’s all the questions I have.
1:23:55
Hopefully all your contact, when you were finishing up, Registration of my fellow. Yeah. Yeah, I’m gonna check and make sure, and I’m sorry, I’m late on some of these. I’m behind and I just, when I send them out for approval, I know you guys approve them and you have questions and I just, it’s just taking me a little bit longer to get to it. So I appreciate your patience, but I’m gonna get the stuff out to you when needed.
1:24:16
Autism and stuff. So, e-mails on them.
1:24:20
I’ve gotten up and so OK, I appreciate the questions. I’m gonna, I’m gonna end it for tonight. And again, this is recorded. I will put it at privacy, fight on the YouTube channel, and I’m going to do this weekly.
1:24:32
So look forward to the next one.
1:24:37
All right.
1:24:38
Goodnight everybody.