U29 – Form 1040 Yes or No Part II of II
0:04
Why everybody, this is John Jay.
0:06
Thanks for joining today’s Thursday, June 17th, and I wanted to discuss Part two, I guess I’m calling it, of the short video I did regarding, whether or not to say yes or no on your Form 1040.
0:20
I’m sorry that I am, Sometimes, they get carried away, and I forget that there’s a history, there’s more detail that I should mention, so I did, I didn’t talk about that, and I’ve been talking about that subject since 20 17, and sometimes I forget the basic information, So, pardon me if, my presentation right, now, it’s going to sound scripted, because I actually wrote the words out so that I don’t miss anything.
0:42
But I would like to have a discussion on it, that’s OK if you guys find this useful.
0:48
So I’m going to read what my notes here, which is only a page and a half, It’s not a lot and this let’s call it the rest of the story, OK, as Paul Harvey would say.
0:58
So, before I get into that, though, I always forget this.
1:01
But I want to mention, I mean, you guys already know this, but this video is going to be seen by other people, but I want to mention that we have … dot com. Which is a blog where I put up information articles, I’m finding lately that I do more videos than written articles.
1:17
And then privacy fight dot IO. I know a lot of you are already members. I appreciate that. And we have video content, the ultimate level.
1:26
It’s talking about the more advanced subjects strategies topics, specifically investing in cryptographic currency and things like that.
1:35
And we are very soon going to have some interviews and content regarding placing large amounts of capital, and private equity and real assets, and other things like that, other than the stock market. Or maybe some of these things can be part of your re allocation plan.
1:51
So in any case, let me get started with this, this, let’s call it part two?
1:56
of the video I, I started on. Whether or not to answer yes or no, on your form 1040.
2:04
Just going to read it, I hate to do that, but I just don’t want to miss anything. So the purpose of this section is to describe the revocable trust relationship between the limited liability company as the account holder at the Cryptographic Currency exchange. and the exchange itself.
2:19
Now, I know in my operating agreement, I’ve put, I described it as an irrevocable trust. It really doesn’t matter how it’s described.
2:27
It has some aspects of each, so I, for the purpose of this article, I’m just going to say a revocable trust, OK, the relationship.
2:34
The relationship that the account holder has with the exchange includes some aspects that are not revocable that because the beneficial interests can be changed by the beneficiaries, that’s the account holder.
2:49
The trust relationship is revocable.
2:53
Either, the exchange retain retains ownership of the private keys for each coin.
3:00
A coin being a cryptographic currency and is thereby the owner of each coin that is exchanged for another coin with another beneficiary, the account or another account holder.
3:11
Or the Exchange facilitates exchanges between two different private key owners, and I’m gonna go into some more detail here.
3:18
The account holders are the beneficiaries who are using dollars to change beneficial interests between coins.
3:25
They’re not changing ownership.
3:27
The ownership doesn’t change, but the beneficial interests change, but it’s it’s being done under a trust relationship.
3:36
So the ownership of the private keys is the same for a transaction or if the ownership is the same for a transaction, then this is not considered a purchase.
3:47
So the owner of the of the Coin is established by whoever has the private keys.
3:52
So for purposes of disclosing Unformed 10 40 in response to the question. Did you purchase any coins?
3:58
I paraphrased that of course.
4:00
It’s the same explanation as before Exchanging coins for coins on a crypto exchange is not a purchase.
4:09
if the ownership of the private keys is different between parties and in exchange between beneficiaries or just owners of coins like for example, if I use a paper wallet in the paper wallet or ledger or something like that, then an exchange is considered a purchase for sale. And on form 1040, you would answer yes, if you were, if you were the purchaser.
4:29
This assumes the account holder or coyne owner, is normally someone who files a form 10, 40, not a trust, or an LLC, for example, OK?
4:39
This example would include a situation where you used dollars at Coinbase to buy Bitcoin.
4:44
Then moved your Bitcoin to your exits or tresor wallet, wherein the beneficial interest did not change. So there is no sale, you are still the owner both ways.
4:53
However, if you exchange your Bitcoin on exodus for litecoin, an exodus, this is considered a purchase and it would appear that way on the relative Blockchains through exodus.
5:07
Also, also if you exchange your bitcoin on Exodus four, for example, my litecoin, on my ledger, that is technically a purchase.
5:17
But there would be no way to identify the two wallet transfers as being related as if they were an exchange of coins for coins between two different private key holders.
5:29
Even though this example is a purchase, it would not be discoverable by any means, at least that I could imagine you’ve got two different blockchains going on to it for blockchain.
5:39
So, most if not all exchange’s, retain ownership of the private keys on both sides of the transaction where two different beneficiaries or account holders are exchanging coins. Therefore, while there is no change in ownership, there is a change in beneficial interest.
5:56
The change in beneficial interest is in trust, and there is no reporting our tax consequence until there is a distribution in dollars currency to the beneficiary.
6:10
If the beneficiary is a pass through any tax, or any possible tax consequence, is deferred.
6:19
If the beneficiary is a person who normally files Form 1040, or a tax return, this will create a reportable and likely taxable situation.
6:29
Remember also that exchanges between coin’s, even though they may be valued in dollars are not dollars and that only the realization.
6:38
I now have the right to spend, for example, of dollars are subject to taxation and it’s important to note that trades between coins offer like or equal value. However, they are valued.
6:52
An exchange of coins using a decentralized wallet, such as a hard wallet or software that you download, would nearly always involve two different owners or private keys and, therefore, constitute a change in ownership and a change in beneficial interests.
7:07
Ironically, these transactions are not usually reported, even though they are reportable and do constitute a purchase of cryptographic currency, OK? one more paragraph.
7:20
And As explained in the first part, bying cryptographic currency, coins as I call them. In any way, using dollars is not reportable, such as on Form 1099.
7:31
Nor is it taxable, as, And you would answer. No unformed 10 40 since it does not constitute a purchase.
7:39
The summary of this, there is a revocation, a revocable, there’s a rev, there’s a revocable trust relationship between an exchange and the account holder.
7:50
The reason why there is a trust relationship is because of the manner in which coins are owned.
7:55
Buy the private keys, and the exchange retains the ownership until there is a distribution in dollars of the beneficiary or account holder or to the beneficiary or the account holder.
8:09
So there, there has to be a distribution in dollars to the account holder who was actually the beneficiary in that situation.
8:17
Account holders are the beneficiaries who use dollars to periodically change beneficial interests while in trust.
8:24
That’s literally what’s happening on the exchanges. A distribution is the exchange of coins for dollars whether or not the dollars in the account holders Exchange account are moved to the account holders bank account.
8:35
You can remove that, the portion of the principal, using the equation I explained in the previous explanation, when, when the beneficiary is distributed dollars, There are subject to taxation OK.
8:49
And this, this is just an English literal description of what I believe is happening And so far, I haven’t had a disagreement from the IRS and the way I have to ask the IRS for determination when there’s a situation where somebody gets a 1099 and it’s it incorrectly shows the amount of dollars he’s received.
9:11
I use illegal argument, let’s call it to the IRS and the IRS has always agreed and they do so it’s sort of a cryptic way where they just say take no further action or they don’t respond. And then we exclude the 1099 and we’ve been never had a problem with the IRS.
9:28
And it’s not the only time we’ve done that over the years.
9:31
Now, I’ve had literally thousands of cases where people had a 1099 from debt collectors OK, and because of their situation, we can exclude that 1099 that they would get from Citibank or from the debt collector.
9:45
We can X excluded on the, on the 1040, and even though the IRS has the 1099, it doesn’t balance out on the 10 40.
9:53
The IRS doesn’t make a problem with it, because there are a couple of legal issues that they just take care of, but they, they do the accounting on it. So I’ve never had a problem with that.
10:02
I did have one client that wanted to go to the extra effort, of sending out a disclosure statement, along with the 10 40, which was fine. He did all that, and he felt better. And it received the same result.
10:15
To date, we’re at 2021 now, so it’s been about maybe three years. I’d say, three years.
10:21
I’ve done about 15 requests for determination letters, where there’s been 1099, issued by Coinbase or Crack and or Gemini.
10:30
And, uh, it was where the 1099 showed a dollar amount where the client did not receive any dollars, and in some cases, received only small portion of those dollars. And I was able to explain that in the IRS agreed, and there was no, that 299 was not taxable put it that way.
10:48
So, anyways, I hope that is clear, is this up, I didn’t mean to be cryptic last time. I I just totally forgot about our background details about how the exchanges work. So as of today, I don’t know if, there’s any changes, tell me, if I’m wrong on that.
11:02
But so far, Coinbase and crack and all those guys still operate that same way, alright.
11:08
So if you guys want to discuss this, I hope this is useful. I will call on you and we can we can field some questions.
11:17
All right.
11:20
Look at chat here.
11:23
All right, I went for it.
11:31
OK, and I’m gonna just that on the note, OK, so on the, OK, as an if you’re an authorized signatory on an LLC, that never establishes ownership.
11:39
The only thing that establishes ownership is the articles and what you say.
11:45
So even if you were named as an owner of an LLC, and you did not include that in your 1040, that does. That’s not a problem.
11:53
It’s just that if you did that and you would have owe the IRS money, well, then that could be a problem.
11:59
But in this case, you’re not going to ever owe the IRS money because of the way we set this up, so yeah, you can be the authorized signatory, and no that does not create an ownership status with relation to the LLC assets.
12:12
I hope that helps. And then, someone has asked me, would you share that note in here?
12:16
Are you talking about, what note?
12:18
If, to give me a little more information, What noted we talking about, The Request for Determination letter, Or is it the information from the last call?
12:29
I mean, I’m sorry, the last video I did.
12:35
Oh, yeah, OK. Now that, what I just read you. That is on the notes section to my first video. So, if you go to privacy, fight on YouTube, What I just read you is there.
12:46
All right.
12:49
I can put it in here too, if you want.
12:52
Yeah.
12:56
Put the text in there, so you guys don’t have to look it up.
13:14
Where can I put it? I suppose I should put it. Can I put it in Zoom here?
13:17
It’s going to be quite a bit of text, Well, let me do that.
13:22
No, second, let me do all that. It’s too much text.
13:26
But, anyways, yeah, it’s on that other video in the Notes section.
13:32
OK, I’ll do that. I’ll put the PDF in here.
13:35
Just just give me a second. Sometimes I can’t do more than one thing at a time.
13:44
Yeah, I know you. You don’t want to listen to the video, it’s probably easier to skim and look at the statements.
13:49
So I’ll do that.
13:57
If some of y’all have your hand raised, oh, I see Ken over here, give me just a second here, Huh?
14:07
Want to make sure you guys get this.
14:13
Today, it’s going to be.
14:18
Let’s call, it may slash june 17th, OK, so.
14:29
OK, what was called …
14:32
Notes, and then do that, now let’s see if I can do that.
14:45
All right.
14:53
It takes me a second to maneuver through all these folders.
14:57
Here we go.
15:00
OK.
15:13
All right.
15:16
Part two notes, PDF, It should appear here in just a second. I think you guys should be able to see that.
15:23
All right.
15:24
And Ken, what can I help you with, John. Hey, I had a question about opening a bank account.
15:36
Remember, you’re telling me I need an operating agreement to open the bank account.
15:43
And you mentioned something about a pay short version, a shortened version of that one page version, right? Do you have an example of that?
15:53
Yeah, I do it. If you have an LLC from me, it’s from it, I have it in there, it’s one pager and it just says, at the top operating agreement, and then it’s got a couple of things.
16:02
What I did is I took the articles that you’re gonna give the bank anyways, and I, I reproduced them into the Operating Agreement.
16:09
So it says the same thing as the articles do.
16:11
So you can make it look like that. And really, all the bank wants to see is a piece of paper that says Operating Agreement at the top.
16:18
OK, that’s it, So that was fairly simple. Sure, yeah. I can e-mail it to you as well, but I just didn’t want to flood the room with this, but yeah. That’s all I did really, just so the bank won’t ask me anymore.
16:29
Thank you.
16:32
All right, and then there is lemons.
16:38
What’s on your mind?
16:41
I have a question to recalling the aussies.
16:45
When you do, a bank loans, finance, on the assets that you mentioned, when you buy a house and you form an LLC and have a, if financed on that house, You, as a person, you, pay off that loan to the L C. So the tax, yeah.
17:11
Is the fun, right.
17:12
My question is that it’s not the case.
17:19
Would she received the income from the payment?
17:25
If so, what? You need to file a tax return? Because it now, it is an entity earning income. No longer holding entity line before. It’s a good question. If the LLC is not falling return, it will not have to file a return if it’s the lender.
17:41
So, if I’m, if I’m buying some real estate and I use an LLC to become the mortgage lender on it and I’m just taking cash that I have control of and I’m putting it for the purchase, I get the title and then I just, I want to keep the title and I’m using an LLC as the lender and this is what you’re describing, right? Yes, OK, yes, the LLC is just like your LLC you’re using for kryptos, as long as it doesn’t follow return, it can earn interest in dividends and all that and it will not need to file a return.
18:08
And you can do it that way, documenting the payments.
18:11
But remember, it’s not necessary to document payments on a loan with a banking system.
18:16
I know it’s typical, 99.9% of everyone does it that way, but you can document payments on a debt through a spreadsheet, if you want, just some record, OK, that you’re making payments on a regular basis.
18:29
Even if it’s a spreadsheet that says on March 17th, and every 17th of every month, I’m making $200 payment on this thing, and you have that in your records. If the IRS ever wanted to ask you about it, you could say, Well, I have a record of the payments here.
18:41
And they’ll say, Well, why is it in your bank’s name and say, Well, because I did a lot of cash, I don’t want to use the bank or whatever it, however you did, you know, So, yeah. As long as there’s a record of the payments on a loan, you’ll be fine.
18:53
If there’s additional record, again, there will be a receiving LLC, they’re not receiving LLC, would be under your control, and then I ask and ask how come that. She never file a tax because it’s a ship the income.
19:08
They would, Yeah, if they would, and, but again, that there’s no, it didn’t file because it didn’t file.
19:15
Then she can earn interest, dividends and investment, and so it doesn’t fire. That’s right, X one, OK?
19:24
That is correct. If you file a return on it, though, you gotta keep filing.
19:28
And then be sure to account for money that you spend on yourself.
19:31
That’s what The Irish really wants to know on the 10 Forty’s and also like think something, like, don’t use LLC money to buy a car and then put the car in your name and think that that’s OK.
19:42
Yeah, so just do, if you follow the rules that I’m selling, I’m telling you you’re going to be fine, I know it sounds weird, or different.
19:49
But I’ve seen it in practice for almost 30 years, and I don’t know that you’re gonna find some law, that says you do it that way.
19:54
But what I’ve concluded is that you choose the tax treatment.
19:58
So, the question is, did the IRS is it owed any money?
20:01
Well, it is if I have taxable income and that is not taxable income to you.
20:08
Would that be a taxable income to the LLC?
20:13
It would if, Let’s say, it is, the answer is yes on that, but there’s no obligation until the LLC claims it.
20:21
The LLC has to claim it under certain tax.
20:23
Whatever tax treatment, the LLC has to claim it as its own, take on a 10 65 or a, a partnership or something like that. Or somebody else has to claim that money. For example.
20:33
You could claim it on your schedule C, but as long as you’re not spending it, you’re not needing to claim it.
20:39
Right. If you’re not using it for yourself, You’re not needing to claim it.
20:42
It’s kinda like, it, is, kind of, like if you, if you had, your stock brokerage would not do this for you, but if you liquidated your stock and bought gold with it, most of them will not never do that.
20:54
Because irus wouldn’t let him, really, you’re able to do that, because of your tax treatment.
20:59
What is your tax treatment? It’s what you’ve chosen.
21:04
Similar to what you said. a person who just plus plan a job a 20 and never fired, … that with the other tax yeah, that was another confirmation that of my understanding of how the system works.
21:19
I have clients that, um, this, this, a couple of clients where they, they have like 17 organizations, OK, they had offshore companies and all this and I don’t know what they’re trying to do. But, when I first got, when I first start talking to them, the first, my first call with them as I asked, what are you doing with this Panama Company? What are you doing with this, this offshore Belize thing and all the ABCs and all this?
21:40
And they actually explained the husband was taking them, his employment income, which he had hit a high income and he was moving that money. He was wiring it over to the foreign companies.
21:51
And then, when I asked him what the purpose was, he couldn’t answer me. There was no purpose, except he thought he was going to avoid taxation of it, but it was wage income. He’d already paid the tax on it, you know.
22:02
But, what was interesting is, they had, um, maybe four, or five LLCs and those companies we’re owning property, real estate.
22:12
Some of them had bank accounts.
22:14
They are ions.
22:16
Then some of the file returns and some did not and the Irish did not care, they could care less about any of the LLC’s, even the ones that filed returns.
22:23
All they cared about was that the two, the couple not paying an amount of tax That was it.
22:30
It had nothing to do with that the LLC’s over here. They just weren’t looking at exactly what I tell everybody.
22:37
They’re looking at your personal use of the money.
22:40
There’s a couple of other issues, but that’s, you know, that was just another example of how they do it.
22:44
It’s just like when I, when I get a business out of a tilt take until taking notes when they just let me all your income. So I’ll just set up another company and and reroute all the cash flow and the IRS does not care about that company ever.
22:57
I’ve had clients call me for years down the road.
22:59
And I have never had a problem with the organization I would set up.
23:04
And their accounting stayed the same because they haven’t, like, for example, a chiropractor’s office, he would have an S corp. I don’t change anything there, he keeps filing tax returns for an S corp.
23:12
But then when I set up a new company and make it a payment processor and route all his money there and then pay only his expenses and keep, Keep it running that way, it’s still no problem.
23:23
So just follow those basic rules.
23:25
So, let’s say if I form an LLC and … to make investment lights a syndication in real estate. And the syndication received a distribution and income at the end to … K one C mm.
23:42
And income can just, standing I always say, Without finding tax, pay somebody, I don’t claim it on my 10 40, And that, right?
23:51
I’m staying there, right?
23:52
Eye attacks, Correct the LLC or the K one does not create a filing obligation.
24:00
This is the, this is the one fact that it’s getting everyone to wonder What the heck how do you do that? Because they understand they believe the filing obligation comes. When the IRS sees money somewhere and the only time the iris sees money is when they get a K 1 or 1099. No, that doesn’t. That doesn’t create a filing obligations.
24:15
What creates a filing obligation is filing.
24:19
So, the eyes can see your K one day when they can see it.
24:24
But there’s no accounting for it.
24:26
There’s no need to reconcile that against something else until you file a return.
24:32
So, yeah. If as long as you don’t take the money out for yourself or use it and try to, you know, hide it or something or pay your credit card bill, I don’t recommend doing that either.
24:40
Then you’re not going to be in a situation where the IRS would someday say you owe the money, didn’t report it, or that you underreported. it. And so far, I’ve not had that situation since the mid nineties.
24:49
I’ve worked a lot of different cases, I’ve never seen that situation.
24:55
Great, thank you so much, OK.
24:57
Good questions, I’m gonna go to the chat here. Is there a preference to Open LLC bank account, online, or in person?
25:04
I mean, with today’s fake pandemic, you guys wanna go in there and deal with that first. I mean, it’s it’s better now than ever that you can do it over the Internet.
25:13
And it wasn’t until around around 2010 or 9, that one of my clients said he had opened accounts at Bank of America and Chase over the Internet.
25:21
Back then, it was like 12 years ago. And since then, I’ve been having my clients do it, because a lot of times, I open the accounts where the client doesn’t live. It’s not convenient to go travel to that state, but it’s convenient to set it up that way. And so, we’ve been opening accounts online for about 12 years now.
25:35
And so for for convenience, I would just recommend doing it.
25:38
That way, you guys can do it however you want, and choose my real name to, or put my LLC company in a name opening, a mailbox and Wyoming, OK?
25:46
When you open a mailbox, you’re going to do a postal form 1883, and they’re going to want your ID. It’s almost like opening a bank account.
25:53
So yeah, use your legal name. You design your documents. You really can’t avoid that, but here’s what’s really cool. Inbox 14, it asked you for a trade name.
26:01
I think it’s box 14 and then the trade name or fictitious name, you can use it as a fictitious name.
26:07
So, like, for example, let’s say I’m helping a woman, a single woman, and I need to change her location for some reason.
26:15
I will set up a mailbox and she’ll give her ID to the mailbox place. Now, only some people can get that information, You have to be the FBI or something like that. You can’t just not, not just anyone can get that information, OK. So, she’s really protected in that sense.
26:27
So, she’ll open the mailbox but in the trade name scheele. Right.
26:30
Mister and Mrs. Jamieson.
26:34
Mister and Mrs. Jameson, so, it looks like a married couples box and then all her mail will be addressed to mister and Mrs.
26:40
Jameson or mister Jamieson OK. That is a use for it, so as far as using an alias on an LLC, you can do that also. You can, you can use an alias on your mailbox, just know that they’re going to still need your ID.
26:54
To be able to open the box, They won’t do it, unless you have documents that you created with the alias on there, OK? That can be done. If you guys want to go to that level, you can do that.
27:05
No problem, OK?
27:08
You can also use a fictitious name on an LLC when it doesn’t need a bank account, when it’s going to be used in a way that your ID doesn’t need to be used to verify your your name.
27:18
So, just keep that in mind.
27:20
Every situation is different.
27:23
Alright, we got a few questions here so let’s go do, they didn’t miss anybody, Clemens. was that good.
27:29
Are you good.
27:30
No more questions, OK. I’m gonna have you Larry hand there and then I’m gonna go to was OK David.
27:38
Go right ahead, David.
27:41
OK, John, so I’ll, this is kind of look maybe off topic.
27:48
I did it let me ask it this way, for the LLC Trust Community Trust Fund.
27:57
There’s a free consultation that goes along with it.
28:04
So, yeah.
28:05
I already, I paid for one as well, so, after the fact, so, I submitted my paperwork with you for the LLC back in April 11 and then I said, well, maybe I need to set up a consultation.
28:19
So I paid for that, OK. It’s, So, how does that work that Should I cancel that or is there a way to cancel it? You can cancel it. I can have the process or cancel that you want. You want me to reverse it? I can reverse it if you want me to. Yeah. Because I guess if I get a free one that, I spend money when you don’t have OK. Yeah, that one Note here, OK, is it in this name here that appears here? Yes, it is, I did do a DM, I did de Mieux on, I did a direct message for your on. The telegram.
28:54
So I can also put it in there as well, just as a reminder.
28:57
But, yes, but yeah, what is the timeframe? You think? This, the LLC trust fund. Because you haven’t took my money. You should take my money for that. I wanna, I wanna do it when you’re approved, and I’m sorry. I’m slow, and I bring on some more people to help me, so they are taking up. So you’re probably right there in the Queue, OK, yeah, sorry about that. Appreciate. So, yeah. I will tell them to tell them to reverse the schedule. And also what date did you have a book for?
29:24
I think we’re in August, Oh, in August, OK, well, certainly, um, do I have your e-mail or or direct message on telegram or something?
29:34
Uh?
29:35
I’ll put it, I’ll post. everything in Telegram for you, then in a while. I’ll post it right here, now, So you have, I was just gonna say, Call me directly.
29:44
Let’s get, let’s have a conversation, I want you to wait till August. And I’m not, I don’t, I hope I don’t upset people. Because I’m not trying to do that to everybody, I’m sure, I’m doing the best I can to answer people’s questions, and I know you have to wait some times. But if I can, I will try to talk with you as early as possible.
29:59
So it can, Yeah, my order form, you’ll see my phone number there. OK, should be, or if not, I’ll check e-mail.
30:06
But it also comes with that one e-mail that kicks back right away when we submit Yeah, OK, so step 1, 2 OK, does that? Yes, I will. I will this certainly. Yeah, definitely. I want to make sure that that’s why I’m pretty soon. I’m not going to be able to do this. OK, I’m not going to be able to talk to people one-on-one.
30:24
Hopefully, my video series, and I’m going to add one more video to the free consultation, but what I’m going to end up doing is conferences like this, or I can do group calls.
30:33
I just have to do it that way, because I cannot get things done.
30:36
And I love to talk to you one-on-one everybody, and it is necessary for the most part, but I can’t after a short time here. So, towards the end of the year it’s going to change a little bit.
30:47
So thank you very much, John. All: right, OK.
30:51
Appreciate your understanding, I’ll get that done. No problem. All right.
30:57
Yeah, OK.
30:57
So on an exchange with a PMA, the the the bank wants to see Articles of Association. There are no articles, unless you want to write them. You don’t need to show the bank anything, because the …
31:08
I have in mind when I write these the PM is a name of a PMA of which you’re already a member, like your family, or a or a club, or a fan club, or something. It doesn’t have to be written down, OK to be a PMA, but you can’t have that conversation with the bank employee. He’s gonna think you’re nuts.
31:24
So what I’ve done is in my abstract documents I did also, like I did for the Operating Agreement, I created Articles of Association for the PMA, which is just a document to the bank I’ll be happy, OK?
31:37
This is not the real Articles. And if you want me to help you develop your articles I can also do that. But you’ll see in my abstract documents.
31:46
You can also explain to the bank. I mean, you can you can tell them whatever you feel comfortable with, but if you use my documents, that should be handled.
31:56
You know, anything I give you in the abstract section, the eight pages, or whatever they are, that is intended to give to the bank.
32:02
And I know the bank asks you for to fill out more forms. But if you look at the forms, you’ll see it’s asking for the same information I have on the documents. So they should take those forms. And a lot of times they insist on you filling out their documents.
32:13
Just make sure you’re not changing your arrangements and your property rights when you’re filling out bank documents.
32:21
Then someone’s asked me, when I’m filling out the LLC form on ACEP coins. OK, do I leave that blank?
32:27
Yeah, if you want me to, I can I can pick. I can choose a name for you, just let me know.
32:31
That’s why the notes section, I can do all that anything you want me to do. Whatever you prefer, put on that form, anything else I can do for you, and of course, we always send you the documents to review anyway. So don’t. we’re not going to just register something unless we get your approval. That’s why I don’t, I really don’t like billing accounts until you guys like everything I’ve set up.
32:49
And Yeah, so hopefully that answers those. Let me see what I mean here.
32:54
Any hands up, There’s any hands up, OK, I should say that, GPS. Yeah.
32:59
Going to first question about the awesomeness.
33:04
Like if I, if I do caching kryptos then so I’m supposed to not file taxes with LLC and I’m supposed to file because 10, 40, Schedule C, correct?
33:18
If you need to claim some of the income for whatever, purpose, But the most of the income, would, probably, you want it to stay in the LLC and then not claim it, as long as you’re not using it for personal benefits.
33:30
So whatever it took money, arms, downs, they take the money out and then report it as your income. You don’t need a 1099 for that.
33:38
Not even mentioned.
33:40
It’s scheduled file, super slick through the LMC.
33:46
It doesn’t matter where it comes from. The fact is you have additional money in addition to your other gross income and you would just claim it as miscellaneous income.
33:53
Know that you need to put it on Schedule C but you want to include it with your gross income. However you want to call it and it doesn’t need a 1099. You don’t have to say it came from an LLC, it has nothing to do with kryptos.
34:04
Additionally, come.
34:04
Yeah, OK.
34:08
And I think, Wayne, Simple question. When I opened my bank account, LLC. The only thing they were interested in was the name of the LLC. The state filed an EIN, and never asked for anything else. I never gave everything else. That’s the correct way. Yes, OK, so everything’s cool with that.
34:26
What bank was that, by the way, Chase.
34:29
Isn’t that interesting? Alright, so if you guys ask them a bank, I prefer I’ve never really committed to one.
34:35
I’m gonna have to say Chase, if they’re going to do it like that because that’s what they’re supposed to be doing.
34:39
They should not ask you about the PMA. They should not ask you for an organizational chart. They should not ask you for utilities, Bill?
34:45
All right. Yeah. It was, it was super easy. And I was kind of, What am I doing something wrong, because this is super, super easy.
34:50
Hey, maybe we’ve broken through a barrier. Maybe they’ve seen so many of these, they’re just like, OK, these aren’t money launderers. Yeah. I think that kinda, they kinda knew what was done to, I’m sure just tell me, are in the Bitcoin cult.
35:05
Last question, and also when I filed it with the state LLC, I’d never gave any operating agreement or anything. Do I need to send something now? No, never. The most important thing that you want to give a third party was, which is a legitimate request, is a, a copy of the Articles of Association, that you’ve filed with the state or that you published in the newspaper. Most of you guys didn’t do it that way.
35:27
But, um, the, sometimes they want a certified copy, Now lately they’re they’re accepting PDF versions, or these are copies of the certified copy of the articles.
35:35
So that’s what they want.
35:37
Anything else is really not necessary.
35:39
I’m not even sure I’ve instead of the article, so maybe I should look at that, But, they probably looked it up, That’s supposed to do it that way, by the way.
35:44
But, I’m happy if they’ll do it that way, because it’s all public records, So, they don’t need to go to the expense of getting that, OK, cool. Thanks.
35:54
All right.
35:55
Yeah, and if you’re asked me about the consulting certainly, I mean, I really do like to talk to people, because I want to make sure I’m not just selling paper, but I have enough videos out there, OK? That now, when I’m finding this whole, you know, if any of you guys watch my videos and you, you call me, and you already know a lot of the things that we can talk about. So we’re already, we’re already now to the more important, interesting questions and subjects.
36:16
So, I would just suggest if you look at my free consultation videos, and the third one I’m going to put up there, that should answer most of your questions, and of course, it’s always a good idea to talk to me first if you can, why you can’t, OK?
36:29
But we’ll definitely gonna, we’re gonna definitely talk, so, if you have a structure, you know, you’d have me set up something for you, or do a strategy. I definitely wanna talk to you at some point, and it’s as early as you need it as possible.
36:42
All right, Wayne, did you want to ask anything else?
36:48
All right, so appreciate the questions.
36:50
I hope that clears up things and I appreciate everyone’s patience, I think we’re catching up, we’ve got some new help, and they’re doing a great job.
37:00
So thanks for, thanks for support me there. All right, guys. And let’s see, OK, one more looks like regarding the 1040 question Can you discuss collateralized loans and liquidations?
37:11
Is that a sale?
37:13
OK?
37:16
Lending your coin or borrowing money against your coin as collateral is not a sale. Now that’s a loan transaction.
37:23
You’re a lender or a borrower no sale there OK, all right, you guys appreciate that. Guys have a nice weekend, too.