U30 – Algebra and Crypto Taxes 0:00 All right, All right. All right, yeah. Oh, man, what, A week. 0:08 It is. 0:09 Awesome, is so awesome. Let me make sure I’m not on mute. I always do this. It is on mute, so finally I got it right. I’m going live a little early tonight, it starts at sev…

U30 – Algebra and Crypto Taxes
All right, All right. All right, yeah. Oh, man, what, A week.
It is.
Awesome, is so awesome. Let me make sure I’m not on mute. I always do this. It is on mute, so finally I got it right. I’m going live a little early tonight, it starts at seven. But I wanted to give you a little bit of pre-game. Talk about this awesome market, man. How it went down, down, down, down. Kinda you could make a song out of it. You know, want to sing with me, I don’t want you to sing with me. I wanted to stop going down, down down, but, you know, they say that the only way you can jump up is by going down, right? So, it’s about time, we go up, but man, I’m enjoying it down here. Because because, because, by the DEP, man, It’s just beautiful. Everything is on sale. Everything’s on sale.
one problem, for me, I just never sold anything. And so I don’t have any dry powder. I’m fully deployed. So what did we do in these cases? Well, let me tell you, ladies and gentlemen, I just want to share my screen with you. This is my day, OK.
And I will tell you, only three things changed today.
three things.
First, let me share with you this.
My portfolio, there’s, my portfolio, is a snapshot of, about probably 30 minutes ago. And, yeah, so, I was just traveling up here.
Just kind of enjoy in, you know, life, and it was going up, and then thank you Ilan, and boom. Boom. boom.
Boom, boom, Boom, Shoot, by the end of today, I don’t know if there’s a, it can it, can, it, can go further down, I guess it can, so, that change, so, three things change today, Ladies and Gentlemen.
My portfolio went from green to really, really read. What’s the Second Thing to change? My underwear. There’s the to my underwear. I gotta change them a couple of times, today.
But then three the only other thing that changed. And this is just to give you a little bit of perspective.
My fantasies. Yeah.
Engage in fantasies here and there.
You know, look, I’m human.
As my portfolio started to go up and up and up and up and up it up.
But up my fantasies changed. I started going into, what if mode? What does it keeps going way up there?
Man, at this rate, I’m sitting here looking at yahoo dot com. I’m thinking, honey, instead of downsizing, what do you think about up size then? You know, all of that crazy stuff that we do when we start getting greedy?
Well, my fantasies got gut checked.
So, today, I’m just back to reality, which is, oh, This is just what happens and let’s just gut check.
Let’s take a personal inventory and let’s just see what we have learned.
Well, first of all, **** happens. Maybe that’s one.
But the only time that you actually lose money and by the way, the only time you make money is when you buy or sell something.
So, if you sell something in the Green, you can take profit.
If you sell it in the red you’re taken it in the shorts, OK?
But what’s important is in crypto, What do I know? I don’t know ****, right?
But I’m just telling you, my experience is in crypto that the reward for, or I should say, the price of those gains that go up up up up in a crazy way that you’ve never realized anywhere else in your life.
The price of that is the volatility, it goes down. It goes up, it goes down, it goes up.
My prediction, OK, don’t sell a **** thing and your portfolio is going to be cured back to normal and probably higher in 3 to 6 months. Maybe it takes that long, who knows?
Who knows?
Maybe, maybe it doesn’t. Maybe we’re in that dreaded bear market. I don’t know. I don’t think so. I think it has a lot of room to go. I think it was orchestrated by some big whales out there, but I just wanted to let you know that luck, we can change our underwear.
Are black folio app can change from green to red and our fantasies can change, let’s just ratchet back a little bit. But we’re not gonna change our portfolio.
While it’s deep and the red, We’re just gonna hold on for dear life, and we’re gonna forget about it, man, I don’t know about you, but I didn’t throw money at this, too.
Depend on it over the next couple of years.
I mean, seriously, if you’re throwing money at this, that you’re depending upon again, so that you can pay rent or mortgage next month. You know, probably a wrong move. So I just wanted to settle everyone’s nerves. I wanted to welcome you to Friday night.
I want to let you know that usually Friday suck in this crypto market and I will let you know the weekends kinda suck too, right? So this is going to be a Stuckey weekend. And it could be more volatile on the way down but guess wait. What?
Next Monday.
I think it all turns around but what do I know?
Now then are nothing OK?
With that little pep talk, I am going to bring yeah, my special guests tonight my good friend, John, Jay Singleton.
And John, are you there? I see I see a foggy mirror I hope here I hope. Are you in the shower here? I’m here, yeah. Hey, John, I have to, like, you know, I spoke with Elizabeth earlier, I was getting ready to go live. And I didn’t realize that. You put an invite out to everybody, so in your telegram chat, so the prize.
I have yeah, that was a surprise. So I have Gregg, I see you. You’ve entered the waiting room. I just want to have a couple of minutes with John first, and then we can get started.
So, John, this, this tonight is it’s going to be all about you, and it looks like we’re gonna have lots of guess, so that’s good. And we’re going to talk about I have your video cued up if you want to. If you want to begin with that. Or if we want to let people in and say hi. You tell me how you’d like to manage it. Since there’s a big group, It looks like it’s coming in.
Yeah, that’d be fine. You can play the video.
I also have some more content that I’ve not discussed before regarding how to figure out what kind of tax you would have to pay for the portion of your crypto investment that you’re going to use.
OK, talk about that, too, so. Excellent. Excellent. Well, it’s 653. I’ve let everybody know that we’re going to come on at seven o’clock. So let me real quickly before we start that, I just wanted to say hi to some folks in the in the chat. Liberty Guy off the grid, whatsapp, Uncle V Yo.
A Liberty guy, Seth is in the house hex, impulse chain. Anyone heard of these two? Yes. I have, and I have some commentary on it. It’s urgent to do nothing, even though I did a show on it, I’m just telling you, it’s urgent to do nothing. I have a different perspective today. As a matter of fact, you won’t find those videos on this channel anymore because I got some additional information. I’m not saying it’s good or bad. I’m just saying that it put up a little corridor red flag with me. And I think people buy from people they like and trust and I want you to.
Like me.
Know, you don’t pay your prerogative but I sure want you to trust me. So when I go down a path, and if I ferret out something that doesn’t smell right, I may be wrong on it. I may be wrong, but I’m at least going to share it with you so that you can do your own research but I have just kinda put a halt on all of that. And, you know, there’s just a lot of research to be done. I’m not saying I won’t do 180 on it again, I’m just saying that I’m not gonna put my channel. I mean, I only have 2000 subscribers, so when I say, I’m not going to put my reputation on the line, That doesn’t mean a lot, but my reputation does mean a lot to me. So, alright, A liberty guy? Yes. I have hacks. Welcome to the jungle guys. Pulse Change is going to be huge.
It could be guys OK.
It looks like there will be some people I do want to let I didn’t want to just before we let everyone in and I hope they’re patient But I do want to let everyone know that remember Gerald Well, down below.
I have my post office box down there. I thought I’d go old school and if people want to support the channel or just selling a kind node or something, I PO. Box is down there so I get a call today and I had three packages. So when I’m sure my good friend, Gerald, Gerald, and this was cool. I don’t know what this is, but it is a Canadian coin, I don’t know which kinda Canadian coin, Canadian dollar or whatever. I’ll figure it out but that’s kinda cool and Gerald and I made up because, you know, we had our peace offering and this this is the price of peace, I guess. But I’m really, I’m really touch, Gerald and I thank you a lot. Seriously.
You know, I’ve done a whole video on you. So, you know, I love Yeah, I got another one, which, you know, uncle me! I like my cigars and this is Brahma Neptune distribution. Wait a minute. That’s not Neptune distribution is that people will get to people. We still got four minutes. So I’m just doing a little thank you. But this is from Mark Wilkinson.
Mark sent me a couple of nice cigars.
Ban, oh, man.
Thank you.
Oliver Oliver.
I haven’t ever tried them so I’m looking forward to that I will I will dedicate my next Cigar Walk to you. Then I have one that is so **** cool.
I mean, just so cool.
There’s a guy, there’s a guy, his name is Bill, and Bill Took the effort, ingenuity creativity to take a shot at an Uncle V logo.
This is a pirate.
Isn’t that kind of cool?
I just think that’s kinda cool. We’re gonna modify it a little bit, but that is darn cool, and I just appreciate the initiative.
This guy right here, that’s Bill, that’s Bill and he’s with some actor. I’ve seen that actor 100 times. He’s in lots of different movies. Then you’ll appreciate this, John. This says when bill tries to enlighten the people to the things they’re blind to.
And that’s it?
Yeah, That’s good. It says, I see, oh, mister Conspiracy Theory is added again. I absolutely. Love that, Bill, I’m gonna frame that.
I think it’s awesome, and I’m gonna reach out to your bill regarding the logo, and just your story, and all of that stuff, and, and, and, and also, You. I’m sorry.
And also, you sent me a couple of cigars, so I’m grateful for my favorite is certainly that and there’s a there’s a funky little one that is a is a 10 year anniversary one.
Uh, I can’t quite read it through the package but uh, I will dedicate a cigar walk to you OK. Thank you, thank you. Thank you, everyone. You’re too kind.
Alright, John Jay Singleton.
My good friend, I’m going to start admitting people into the room and welcome them I don’t know if everyone can hear me, But Folks, we’re gonna see a lot of people this. These are folks who are part of John Jay Singles Trends, which group John your privacy?
Well, it’s all the same. It’s under the title Eisa coins on Telegram A So why does everyone Yeah, OK?
Ace of coins on Telegram and Let me Let me do this just to get everybody up this up to date. We’re just going to watch. It’s a six minute video.
And actually before I began, uh Maybe you don’t know me.
Maybe you didn’t know me, but I will tell you I cannot say enough about my guests tonight, John Jay Singleton. He is a legend in my mind.
He has helped me, uh, well, with me in so many ways, including losing £30 in 30 days, This man is a fascinating dude, he’s every, every three days, whether or not, and, but, but seriously, this guy, this then, in trim, in shape guy, used to be £100 heavier, so he is, he, really, he was my beacon on that, and Rover that the Thanksgiving holidays through, through Christmas and New Year’s and all of that. That’s when I lost all my weight when everybody was gaining. And I owe it to John for that. So, thank you, John, and above and beyond that, John has just been a a rock for me.
Those of you, some of you may know me from my all YouTube days where I had an on the … show. And if you do, then you know that, that, that I am in a certain kind of battle and John has been this voice of reason and experience, and just I’m able to run lots of things by him. So when he says something, I Listen.
And if you go to ace of coins dot com, then you’re going to be able to get a little peek into the fact that he has a thing to say a thing or two to say about taxes.
Are we obligated to pay taxes? We’re gonna learn about that tonight. He has some other content. But before we do, I wanna just go ahead and show you the six minute video while we wait for some other guests to come in, and I’ll let them in. As we do this.
OK, here we go, let me, I just wanted to go over.
Hi, everybody, this is John Jay, just wanted to go over a very brief message regarding this 10 40 reporting, where you disclose crypto purchases.
And I just wanted to switch over here, I’m gonna do a screen share, and I’m just gonna go to the IRS website, And.
And I’m going to show you what I’m talking about here, right, Good, OK.
So, What we’re looking at here, OK, this URL is at the bottom of this video.
So, you can click on it. You can also Google this, I’m sure you’ll find it.
But, um, we’re going to look at some of the questions here.
Questions and answers the irises given regarding reporting with kryptos.
Going back, you can see my cursor here going back telecom. Notice from 20 14 to 201421. This is where the IRS defined cryptographic. Currency has property. So, it made it basically, it made it just like gold.
So, how are you used to treating gold? That’s how you should treat cryptographic currency.
And then if we scroll down, you’ll see, and I’ve done videos on versions of this information.
Yeah, especially publication 544, that’s really useful, but you need to understand the terms, OK.
Nothing on this is inaccurate, OK, the irises correct.
What we’re going to run into problems is the sales pitches that you hear on Forbes and all these other websites and whatnot.
So just stick to the facts, OK. I don’t have any problem here. There’s not challenging anything, I’m just going to share this with you guys. If you look down, you know, it’s going to talk about what’s virtual currency. Well, the IRS has already solve that question.
With its publication, it said, we’re going to treat it like property everywhere around the world. It’s treated like property.
Then, you know, we can talk about this.
I’ve addressed this many times, we know what that is.
Will I have a gain or Loss when I sell my currency? Yeah, you can, are.
Strategy has been, To avoid that game, right?
Don’t create a gain for yourself easy enough, but this is what I want to talk about.
Question five: and it’s nice, The IRS gives you the answer. one of these quotes, 20, 2010, 40.
On the tax year 20 20, it asks, You know, if you’ve exchanged, purchased sold, whatever, coin’s, virtual currency, it’s telling you the question is, If I purchase currency with real money, like dollars, US dollars, and had no other virtual currency transactions during the year, must I answer?
Yes, OK, it’s telling you the IRS says No.
If you’re only transaction involving virtual currency during 2020, where purchases of virtual currency with real currency, OK, they call that the US Dollar Real Currency?
You are not required to answer yes to the form 1040 question.
So, hmm.
This is talking about a purchase a virtual currency with dollars from a person who owns virtual currency not yourself.
It does not pertain to using litecoin to buy bitcoin, because you’re not actually buying. There’s no purchase. And there’s no sale, because, like I’ve said, many times before, the beneficial interests have not changed.
You can use Dollars to buy coins and say no.
This is what question five is telling us.
This comes right from the irises website, If you’re using coins to buy coins from someone else, besides yourself, that is what they want to know. This is what it is telling you right here.
So, just be aware of that, OK? Now, of course, you can structure this in many ways. I mean, you can do these transactions, we do them all the time. So, no one can see. I mean, you’ve done this for years.
I mean, I remember my grandfather would come visit us and then when he leave, he would shake my hand and give me a silver dollar, OK?
so, no one knows about that transaction, right?
Oh, this is what human beings do.
I’m not saying go out of your way to do transactions like that, and I’m not saying focus your energy on defeating attacks.
But just realize that you don’t have to create a situation where you have a gain.
But understand what language the irises using, Understand the principle of beneficial interests. If those do not change, there’s no sale and there’s no purchase.
And there’s no disposition of an asset so if I put some coins on a separate Bitcoin on one of those, you know copper one ounce coins It has a private public key on there, right? The private key is hidden So if I just deposit some Bitcoin on there and I’ve got my copper coin that can hold my hands.
What I really have is a paper wallet OK?
I can I can hand that to somebody.
In fact I can hand that some to someone in bitcoin and someone can hand me the same type of coin for litecoin The IRS wants to know about that but are they going to find out?
No, and isn’t this something that’s done all the time? I mean, don’t you hire a babysitter and then don’t send her a W two. I mean, come on.
So you know, it’s up to what you guys want to do, Of course. And again, the rule is don’t organize all your affairs to simply avoid attacks.
Sometimes it makes sense. But, gosh, you know, you can miss out on some opportunities and get yourself in trouble.
So just realize the language is very strict here: If you’re purchasing cryptographic currency, it’s currently not yours and you’re using dollars, that’s fine.
If you’re using coins to purchase the cryptographic currency, it’s not yours.
If you’re using cryptographic currency like litecoin that you own to buy somebody else’s bitcoin, that’s considered an item to be disclosed on your 1040 that alone, This is all we’re talking about Here.
I’m not going to go the other ones, because we’ve already, we already covered this, I just want to do the short video to give you guys this information, OK?
All right. Hold on. Hold on.
Hold on There we go.
Let me do this and Make sure that I can see people.
I Think I lost my thing that says to admit people There we go.
All right.
Anybody else coming into the room?
Let me see OK. We’re good. OK, John, so that TES everything up Why don’t you Mean? the big question that I have is I’m a little I’m a little confused.
So Basically my interpretation is I don’t need to check that box if I am funding an exchange with my cryptocurrency and if I am Trading Coin so if I’m going from BTC to a stable coin or I take BTC I send it to trade over and I swap for some are, You know that because I’m trading it within coins And It’s just me. I’m not trading it with another physical human being. I guess. I’m just kinda confused why is it that everybody else out there says that you that’s a taxable event?
They’re being told to say that, and they’re afraid they’re afraid of the IRS.
So they’re just going to go and go along with what you’re seeing on all the Forbes articles and all these articles. But if you look go to the irises website, you’ll see what I just demonstrated.
What they’re saying is that a purchase of cryptographic currency involves taking cryptographic currency, and buying other types of cryptographic currency from a second party.
It’s not trading. It’s OK. Give me an example of where it would be a taxable event then.
Um, a reportable, let’s just say reportable If I take litecoin, and I buy it from another person, let’s say.
It’s my friend, and I just take my litecoin, and I buy some bitcoin! I trade them?
That is considered a purchase. OK, but what’s happening on an exchange aren’t you, basically just? Isn’t that a facilitated exchange between two people?
Yeah, and exchanges like I just described is a purchase, but if I’m on the exchange and I have different coins and I trade from coin to coin and they’re all my coins in my same portfolio those none of those constitute a purchase OK, so initially, all right, let’s war game this out.
So I want to get $10000 of my fiat from my my, my bank two, Coinbase, let’s say.
So I go into Coinbase, and I buy $10000 worth of diversified coins a thousand dollars in each coin, OK.
And then I pull those over into my exit is wallet.
Now, Bitcoin goes, skyrockets, it up, skyrockets up. And I want to be able to take some profits. So if I exchange that, within my exodus wallet, so, let’s say it went up by one thousand bucks, and I want to take a thousand bucks a profit, and I exchange that for USD T or a stable coin.
You’re telling me that because I’m trading coin’s within my own universe, crypto universe. That’s not a taxable event.
That is correct. But you have a couple of different episodes, or let’s call it transactions that the first one is you went from dollars to coins. You bought it from a second party, which is Coinbase.
That is not a situation where you would tell the IRS yes, I purchase Kryptos because you purchase from dollars to crypto coins.
It’s only when you purchase from crypto coins to other crypto coins that you didn’t own first OK, but when when I’m in my exit as wallet, I don’t own that you STT I’m exchanging for the U S DT.
So, how is that a taxable event, OK? Do you care about the USD T value when you acquire it or when you go to buy it?
You care about the value.
Well, the value is closely tied to the dollar.
So, if, does it mean something to you? Would you give it away and not care about it?
Would I give it away and not care about it? And know it that, right, because you, it’s yours, your beneficial interests have not changed.
Ah, ha.
So that’s how you know what beneficial interests are.
If you still care about the thing, you still have it, you still have beneficial interests. And as long as that doesn’t change, there’s no tax liability.
So when does it become non beneficial interest, in that case?
Yeah, Huh?
You spend it to buy something.
OK, so, let’s say my dollars, let’s say, my 10000 bagh overtimes ends up becoming.
Amelia, 100,000 bucks, OK? Now, let’s make it easy, 10000 bucks.
OK, I 10 X and let me admit this person in to text, and I want to buy my wife, a brand new car, so, I take 50 grand out of it, and then, it take 5000 of that kid. Her used car and take 45 and go to the Casino. But, let’s say, now, let’s say, I used all 50 of it, and I went and bought a car.
So, I have used my crypto, too, get into Fiat, so that I can go buy a car. Because these dealerships, thank you Ilan, are now not taking crypto. Manipulating the price, you know, let’s say, they’re just manipulating the price. You know, it’s just a game.
I know, I know, I said, when I first got on, I said only three things change today. You know, my portfolio went from green to red, OK?
Second thing that changed was my underwear a couple of times. Looking at my app and the third thing that changed was my fantasies, you know, before I went down, I was fantasizing, about which site should I go with the 32 or 34 foot yacht?
And then now, I’m back to just saying, hey, you know, I’m happy, I’m deployed. This is a great asset class.
It’ll turn around, you know, But I didn’t sell one time. I didn’t sell, so I haven’t lost anything. So what people don’t realize is when you see your portfolio up up up, that’s what’s called an un realized gain.
You only realize that gain when you sell it, same thing when it goes down, down down.
That’s an unrealized loss.
It’s just a picture on your block foleo app.
You know, and the price of admission to get into crypto, to be able to get those up up up gains is called volatility.
And so if you just hoddle, or us old, people might say, Hold, just hold on.
No, it’s urgent to do nothing, just sit back, then there’s going to be a point that out, because I guarantee you, there was a lot of people who bought Bitcoin at 28,000 bucks back in 2017. That then they started charting their paths when it went down to 3500.
And how many those people sold only a few years later to see it kis $65,000 and say yeah, I was that guy Hougaard afraid I call it, I call it.
uh, what did I call it yesterday on my Cigar Walke Basically.
It’s it’s uh, Fogo fear of going fogged Fog, Tow its fog.
Tell fear of going to zero, Fogg tell.
And that’s kinda where everybody is right now. They’re like, Oh, my goodness. This is going to go to zero. It is not, guys. This is the whales out there that are manipulating the market to totally, totally ***** these highly leveraged traders that just start leveraging their the crypto world because they get greedy. You know, a two X gain in in two months just isn’t good enough. We need to ratchet it up to a 10 X gain and what happens? The whales see that. And they’ll correct them.
So anyone watching this is probably a relative newbie to crypto. So my message to you is hold.
Don’t spell anything. It’s an unrealized losses at this point.
And it’s going to turn around.
I’m going to ask me to mute. If somebody comes in, just if they could stay muted, that would be awesome.
Um, But, you know, it’s OK, But, maybe that’s one way to not know to pay taxes, is to never make money. Go ahead and sell today. You won’t pay. That’s it, right? Sure.
I’ve heard that they are more interested in the tax.
The tax makes the decision for financial management, Which is just a consumer way to do stuff. You’re not going to make any money that way. Look, John, that’s why this is so enlightening.
Because if you take away that fear, that if I feel like I’m kind of, at the up, you know, let’s say, Bitcoin is 65,000, 62,000, you know? And I’m like, Man, the tree doesn’t grow to the sky.
I think I’m gonna exchange, Or a stable coin right here. But in the back of my mind, I’m thinking, if I do my basis on, that, was 30, so now I’m at 60, So that’s, that’s 30,000. And I’m going to have to make sure I budget 25% of that for taxes. And maybe that sways me from making that decision. And then I get wrecked. Whereas, what you’re telling me is, if you make that, and this is not financial advice, everyone, I’m not a tax account, I am just, I am just your favorite uncle, that’s it. I don’t know ****, that’s my one liner and, and I need a hat. This is not financial advice, why? Because I don’t know ****, but I’m trying to figure it out, We’re all trying to figure it out. So.
so you’re telling me that I need not have that mental debate when I want to exchange for a stable coin, because I’m not obligated to pay tax per the IRS’s, his own, uh, laws or whatever the **** they call them.
I wouldn’t.
That may be correct, but I’m not, I wouldn’t make a decision based upon that presumption.
Yes, it may be true, but I wouldn’t make a financial decision on that. I would make my decision based upon my anticipated return on capital.
I don’t care about the taxes.
Once I have the gains, I want, They’re not realized. Like you explained mm, hmm. Then I can decide how I want my tax treatment. I don’t need to be concerned about that. Right now. I just didn’t make as much money as possible with my original principle.
So, making as much money as possible with your original principle in the ecosystem, though, is, you’re basically saying, Yugo, just do you? Don’t worry about the Tax Consequences. Yes.
Yet, Because we have a strategy for that, too, when you want to pull, right, that all of that out of this, the ecosystem, the crypto ecosystem, have that, right?
Exactly. The tax is the last thing you need to be concerned about.
OK, but what happens when the exchanges start sending the IRS? These …
are OK, the exchanges will report to the IRS on a Form 1099 K or … version of that, OK?
And that reports exchanges between coins.
And because there’s no change in beneficial interests those 10 99 can be corrected and I’m not saying that’s a great thing to have to deal with But you may have that situation if you’re exchanging coin to coin on the exchange. If you want to do that. That’s fine.
I Don’t recommend it. You can use a ledger or you know bit phi or atomic wallet.
You can go off of the exchange and make those trades, or go into some real sophisticated software, and make trades, like a trader would, OK.
OK, so what you’re saying is, is, and I’ve been saying this from, from day one since I started knowing a little bit, is, If you need to get your, your, your fiat money operationalized you need to get it on an exchange like Coinbase bass Pro upgrade the coin both Bass Pro people, it’s free and you’ll save about 3% fees, because they ***** the newbie.
Just say it, so once you, once you make your investment in your coins, get them off the exchange.
So either on to exit this, which is a hot wallet on your computer dedicated computer where you first run, Kaspersky to make sure that there’s no malicious Malware on there, that’s going to, you know, steal you blind, But better, better yet, get it to an offline cold storage wallet like a treasure T or a ledger.
But there are ways then outside of the world of exchanges, of KYC, Know your customer, to where you can exchange your coins, whether it’s through what Jon Mehta Mask or in the end. And I don’t think met him asked. That’s just a wallet right there. There’s nobody there that’s going to be reporting to the IRS.
So right now there’s no KYC that I’m aware of, there’s no chokepoint they’re using, right?
OK, so, so so right now today, you can basically do all of that exchanging uh invisibly so to speak mm where the exchanges aren’t going to be sending 10 99 K or whatever.
You said it was To the IRS.
But if you want to keep your coins on an exchange, which is not smart people, then then then and you want to exchange the coins back and forth then you are triggering at least No paperwork that you’re going to have to deal with. When you file your taxes now you had mentioned that you could get that corrected. What did you mean by?
OK? There’s 2 things 1 is I can get it corrected, but And you can too. I mean, I’m gonna explain this. You’ll understand.
But the first thing is there’s a threshold of reporting. So you’re not going to get a 1099.
Unless if you sell for dollars on the Exchange that gives 1099. No matter. what the amount is, I believe.
Or if you exceed the number of transactions per dollar But But dollars. Do you mean USD T? A coin dollars? USD T is not US. Dollars.
Oh, OK. Well. How in the **** do you mean it?
Would Basically just have to with so they have a dollar.
I guess I’m if you sell your coins for US. Dollars on Coinbase You will get a 1099 the account holder will get a 1099. OK, so Newbie question here. Because I’ve been a …
so I didn’t and I’ve never taken money So I didn’t know that let’s say you have one thousand dollars a Bitcoin.
I Knew that.
There was a There there was a USD T a. Stable coin mm it’s tied to the dollar but also in Coinbase There’s just the actual US.
Dollar that you can you can itself, right, OK, so you’re just OK?
But if you go into a stable coin, that is not the same as going into a dollar That is not a game, that’s not a disposition of assets, OK?
Yeah, all right, so when you do that, you are paying an exchange fee, right?
To Coinbase when you sell are you still paying a fee to Coinbase like if you have $100 and you want to can convert it to cash at $100 cash. Is it ended up being like, yeah, yeah, they’re always going to have a fee on there, OK. But that’s what, it is, the business.
The threshold is 200 transactions, whatever those are, in one.
Wow, yeah. It’s a lot.
Yeah, and that’s why I don’t see too many 10 99 K’s or tonight Nites.
There has to be another condition that’s met before you get a 1099 for exchanges, or trades between coins.
And that is, I believe, though, the account value has to exceed $20,000, OK? It doesn’t mean you have $20,000 in the account.
It just means that the value of the coins you have, has to exceed $20,000, And the trades have to exceed 200 exchanges in that one year, OK, Wow. So you have a little latitude there if you want to trade on Coinbase if you’re not doing it too frequently.
I’ll caution you on this, though.
Someone came to me with a 40,000, he had a $40,000 principle in Coinbase.
And he did many trades. He was trying to, I guess be a trader or something, and I knew at this and said, yeah, he got a 1099 4 900,000 dollars.
So, here’s how we fixed it, we actually got the IRS to agree that that was wrong, and so I send them a letter, and they, I don’t know if they wrote back or not, but they corrected.
They corrected on the individual master file, What they said was, the conclusion was that the $900,010.99 was not reportable.
So, as it says, it is, as if it never existed.
So he just reported his normal 10 40, and everything was fine.
OK, OK, you have to, You have to ask them, though, You have to send them a Request for determination letter.
You have to request a determination letter.
OK, So right now we’re going to give a little infomercial for you.
So if there are people who watch this later and want to get ahold of you who may have Jay changed their underwear for different reasons, because maybe they got a nice letter from the IRS or something that surprised them. How do they reach each other?
Best way is e-mail and I am slow and e-mail, right. I’m not slow but I have a lot of e-mail but if you have a little patience I will answer.
It’s singleton press at proton mail dot com Singleton press at proton mail dot com. So somebody in the chat, if they could just write that in, that would be appreciated, appreciated. All right, we have Sheena, what if you sell crypto for dollars actual USD within an Exchange account, IE Coinbase Pro? But then use those funds to buy other crypto within the same Exchange account without ever withdrawing or moving the USDA funds out of the Exchange account since the funds never left custody of the exchange. Would that also not be a disposition of assets? or is it still considered a disposition and, therefore, taxable, even though you never actually withdrew the funds Excellent questions.
Very good question It is considered a disposition assets and it is reportable and likely taks.
OK, now, now there’s a There’s a similar Sort of transaction that you would, You can read about if you want it’s called a 1031 exchange where you sell real estate, and within a certain period of time, you use the funds from that real estate transaction to buy a like type of real estate.
And Then that will be a deferred tax situation.
This is what you’re asking If you can sell coins for dollars, and then within a short period of time by other coins there is no such exemption in that situation so it would be reportable gain, OK.
So, really what we’re suggesting here, and this is not investment advice. This is not tax advice, but we’re just exploring.
We’re having discussions of possibilities, exploiting the ambiguity of the gray, whatever you wanna call it. But, you know, we, we, we we we want to keep the money, the amount we earn.
So from what I gather is, go, deploy your funds, get your coins.
Pull them off, and then there are ways to be able to exchange coins that aren’t on an exchange. Just figure it out.
Are smart people. It will figure it out. And then when you do, when you get that little thing, at the end of the year, that says Q and what does it say? John, What’s the macro the first question? If you say no to You don’t have to worry about the rest. Did you purchase cryptographic currency?
Particularly what it’s asking.
And so by purchasing cryptographic, PERC currency, that’s kind of a trick. Yes, it is, right? So we can with good conscience.
All of us say no, if, Unless you bought use coins to buy other coins from someone else, then it’s not a purchase the only time it’s a purchase, where you’d have to answer yes, is if you use coins to buy someone else’s coins.
OK, John, I am going to make your co-host and John I’m going to be the skeptic here who they’re going to be people saying, you know, guys, like John Jay, we’re gonna get people in a lot of trouble.
So, can you please go to the source, go to the IRS website, and show us where they actually say this?
OK, it’s not going to be said like that because, it’s all accounting practice, and this, I will give you something you guys can reference, OK?
This is what you had alluded to it earlier, and what you’re reading on the internet, about reporting gains.
Which are the increase in value.
Measured in dollars of your coins or reporting?
Trades between coins that you own.
Like your own litecoin or your own bitcoin reporting that those transactions.
This is based on the presumption that you are using accrual based accounting like a big corporation would.
So this is completely different conversation. You should not be even reading that stuff. It does not pertain to us.
People filing 10, forty’s, I don’t know of anyone who, who uses any type of accounting, but what’s known as cash basis accounting.
So cash basis just means what you see is what you get If you have the money. Now if you realize the dollars, if you have the right to spend the dollars, If you sold your coins, and Coinbase is holding your dollars, and you have the right to do whatever you want with those dollars, that’s when you have the gain.
Not when the value goes up, and then December 31st comes around.
No, that’s for big corporations, You’re not doing that, OK.
Yeah, OK. That’s, that’s, that’s, they’re very tricky on this language. So, and your accounting standards.
OK, so, so, let’s say that I’m naive and I’m like, yeah, I got into crypto. First week of January, I’ve bought and sold some coins and darn it. There’s this software that, that people keep telling me about that I can upload all my transactions and it’ll spit out exactly how much that I owe that I can give to my accountant.
So, that’s just all uh, yeah, almost theft.
Uncle Sam spoke in my pocket just because I know I’m too dumb to know better.
OK, I’m gonna let you guys decide.
And, sure, I can answer questions about this, but let me just, Let me just read, if I could just, briefly, I just happened. I’m writing an article on this. I think I’m finished with it. I’m gonna publish it on ace of coins.
OK, this is the disclaimer from Coyne Tracker.
Now you guys can look at all the software you’d like to use ’em or recommend right now.
Never, ever, ever use the coin tracker software on any of the exchanges is completely wrong.
Wow, it’s completely wrong. Wow, you guys heard it here First. Ladies and gentlemen, because uncle, vigilante doesn’t know ****, but I’m not afraid to ask questions, and have smart guests on, so let’s hear from John. right now you decide for yourself, I’m going to read. If I could just be good. This is the weight coin tracker says and after all the conditions in terms of conditions of the license on the software.
It says we endeavor to keep coin tracker and the services as secure as possible, but you hereby you hereby acknowledge that no system involving the transmission of information by the internet, or the electronic storage of data, is completely secure. We’re not liable for any loss theft, unauthorized access, disclosure, copying, use, or modification of your personal data that occurs outside of reasonable control.
The company also makes, now, that first part has to do with your privacy so we know that we can understand that, you know, sure, they might have some disclaimers on that.
But the company also makes no warranties as to the reliability or accuracy completeness or quality of any information on Queen Tracker or obtained through the services. You agree.
That the company is not liable for any errors or omissions loss, or damage, which may be caused by your use of coin tracker or services to the fullest extent, permitted by law.
Any damage that you, that made, you, that that may occur to you through your computer system as a result of your loss of data from your coin, traeger Services is your sole responsibility.
Now, there’s there are more disclaimers.
But basically and this is true if you ask your accountant, you can ask your accountant as well.
I’m going to sign a tax return, and I’m going to act upon your advice, and I’m gonna do what you tell me.
And I want to know, are you liable if if I’m accused of a mistake or if I make a mistake on Mike on the 1040 form?
Do you have any liability as my CPA?
And he will tell you It’s probably already disclosed to you, that he has no liability whatsoever.
The IRS will even tell you that even though he even may sign for the return, you already you guys probably already know this. Yeah.
And the other part of this is when you sign a 10 40, it’s under penalties of perjury. And guess who’s signing it Only one person on the Earth. That’s you.
So you exclusively have all the liability Coyne tracker has zero liability that software and whoever wrote it, is not trying to help you.
They are trying to get you into creating a certain accounting practice for you. Because that’s what the system is.
Coinbase I believe, is part of the system of Corralling people into a certain accounting practice.
I mean, that’s a very nice thing to say, but yeah. Yeah. So, you should make your own determination based on things that I just read you.
They’re not taking any responsibility at all. Nor do they have any liability.
And if you look at the case law, you’ll find out where cases have been brought before the talk. And John Michael, my camera went out, I’m gonna go try to push some things together. Maybe it comes back holdout. Yeah.
You’ll find case law from cases where a person tried to use a defense, such as, I was relying upon the advice of my accountant.
And that is actually not a legal defense.
So you exclusively have all the liability.
Once you understand that, then you realize, OK, you’re on the hook here and you have to understand what you’re doing. And you have to.
You have to do what you believe to be correct, legally correct? You have to make your own conclusions, not even your attorneys liable.
So that includes me, I mean, you could you could just ignore everything I’m telling you.
But I’m just saying, you cannot because someone has a CPA next to his name, the letter’s CPA, are a bar, a bar member. You cannot rely upon them.
because you have all the liability.
So I mentioned cash basis, cash basis, accounting.
Let me go back like a good Rasch. Alright.
So I mentioned cash basis accounting.
That means when you realize a game, not because the value of your acid increases or decreases.
Now, if you want to, I’ve talked to people before that, they had a substantial loss, and they after I explained everything, they said: You know, it makes sense to me, too.
Account for this as a substantial loss, even though I didn’t realize the gain I didn’t dispose of the asset. Hey, that’s up to you.
Because you are the boss. You are the one with all the liability, and that’s why you can choose your accounting practice.
You did you decide that once you do, you’re on the hook for it, OK? Whatever it costs you.
OK, so, Because I need to always simplify things down to a level that even I’ll understand them might take away from this is I’m not going to I’m not going to check that box because I’m definitely not doing 200 transactions, and it’s between coin.
So No.
I’m in. thank you can always avoid that situation.
There’s no reason Why you’d end up having to say yes on that form once you understand that OK, OK, that’s great that simplifies things takes a lot of Axed out of my brain. Let me look Marco to everybody, but the beneficial interest did not change from the above question. OK, We I think we dealt with that thank you I did this, and it was within a few days.
So it’s too bad that 10 31 exchange doesn’t apply right? There is no such thing for crypto.
What do you mean? What is what’s happening at 2031 exchange has to do with real estate and real estate investing?
There is no such thing for kryptos or gold or other assets Yeah, OK.
OK, so What is the best way then, John to take profits?
OK, good question.
Well, there’s there’s many ways. I Like to take profits where I’m not going to pay tax first, and I want to do it legally.
I don’t want to be losing sleep at night mm. Hmm.
So, you never you never want to have a game. So, let’s say, I put X in, and now, I have 10 X, or 20, or whatever you have. Now, it’s time to buy some stuff.
I’m going to re-allocate.
I’m gonna.
I’m going to keep my my new network now.
Now, I know that I can take 100% of my new net worth And I can put it into an asset, and I always like to use the example of a hotel.
Because a hotel would be an asset because, hopefully, it’s going to make some money, and it’s not my liability.
It’s not my house, OK, your house is not, your app, can, we can read back the bus up in? The only reason why, and I’m not trying to be rude is you’ve used the hotel analogy on me before, but in my brain, I’m like, that’s never going to apply to me.
So, can you rework the analogy to where it might might apply to some of us who, OK, might not have the grand ambitions of finding a hotel that’s gonna give us recurring, what would you do with 10 times more money than you’re used to having.
You would want to invest it probably, right?
The safe investment would be buying your neighbor’s house and leasing it back to somebody that you could probably handle, right?
Yeah, yeah, OK, All right, so let’s say you’re gonna do that, now you’re going to become a real estate investor just because you have way too much money that you didn’t, know. You don’t really need it. I mean, I hate it, it’s fun to say that. So, but what about my fancy pants and lollipops I want to buy in mind. OK, in my new car and my aunt and my boat at the Marina and I’m just kind of joking but not. I’m like, it’s kinda like all of this.
We’re putting a lot of time and expense into this, and the end of the day, when you have these mad gains, you kinda want to be able to have a little fun with it.
Let’s, let’s talk about that then let’s buy a nice car that you wanted to have Amazing pressure neighbors and your wife and whatever, OK, So it’s not another $50,000 car right gate, OK. Yeah, we want, oh, man. You’re not know unless you have a lamp of exactly how much is the L M by these days. But let’s go to 50. Alright, so let’s say I’m up at 250 and a Lambo.
Um, You go to the dealer, you make your deal, and you decide how you’re going to buy the car, so you can pay cash for the car, so you sell your coins for dollars, and you buy the car, and that’s completely reportable and taxable. You have no tax benefit therapy, did it that way. Right. But, that’s your option. You don’t have to do it that way well.
Yeah. OK, OK. So, here’s how you not do it that way.
So, buy the car, make your deal.
And then, you tell the dealer, how do you want the thing titled?
So, either, you’re going to take the title of the car in your name, and you’re going to tell the dealer, My Uncle Bob or my company is financing this.
And here’s his the lender’s name address, all this stuff.
And the dealer will write up your title documents and send that information to your lender, which could be your own company.
I know that we’re stepping a little bit into the future, so I have a 575 E called I’m not going to say what it’s called, but it in your your your it’s an unincorporated private association, OK.
And I know you’re familiar very familiar with those. You create them. Right.
And, and as I understand it, that pretty much creates a brick wall between, it’s like I have all the control, but I own none and it’s a brick wall between my social security number, and any your staff, and my race date.
So, so, we separate your personal liability from property, So, in that case, the lambeau Could be purchase by the, uh, the the, the entity, right, or the entity, it be titled to the entity. I guess two ways to do this without having a tax liability. one is use alone, and the other is don’t take the title to the property.
So, for talking about a car or a vehicle, that is going to be denominated in dollars, you can’t avoid that. You can’t just say to the IRS, Well, it’s priced in crypto.
So, therefore, it’s not taxable, it’s not going to fly, You’ll lose every time, so you just can’t have the gain by buying something in your name unless you structured as alone.
OK, I can buy it. I can buy the thing that vehicle, let’s say, which is a liability, It’s my car.
I can buy it in my name, but I have to use a lender and so like what you’re talking about. I need to have a third party lender, So I’m gonna have to set up a trust or company. Or like you’re saying 5, 75, or whatever. That is. It’s gotta be a third party.
It cannot be part of my State, which is very easy to set up.
And that’s, it. comes to lienholder on the vehicle.
Even though I might be the owner, That is how you avoid.
You’re moving, again, from property or an asset.
You’re selling the asset for the dollars, and you’re using the dollars to buy something else. Some other property?
And at no point, did you take a gain.
As long as you write that way.
Right? So I tell everybody that I’m not gonna, I’m not gonna suggest something in here unless it’s kid tested, uncle approved, and I will tell you guys that I have set up a 575 V if you are, at least, if you’re interested in that.
Just e-mail me best e-mail addresses the uncle vigilante at Gmail, The uncle vigilante at Gmail. Just put like 575 E in the header, and then I’ll just set you up with the guy, or I. John, you know, you tell me, if, if you do this. How you know, what, what it’s. how can help?
How can I direct people to you, and, and it’d be efficient for you? Like, is there a specific thing in the header, that if you saw that, the, like, OK, somebody’s interested in. Yeah. Well yeah if in the subject line, if you just want to mention you know uncle, uncle, vigilante, and then there’ll be easy, OK. I use limited liability companies. You can also use trust organization.
You just have to understand, what you’re doing, and it’s not very complicated. You want to separate the property in a title that’s out of your state.
So it’s, it’s not part of your Will, let’s say.
Like, if you guys write up a Will, the property, we’re talking about, like, Kryptos, like for myself, my crypto portfolio, is not in my state.
So if I had a Will, it would not be mentioned.
However, my family and heirs and everything would understand how to access that asset if I were to disappear.
No longer need it.
People say, if something happens to me, I would say, well, you could get killed.
Get abducted by aliens, or, you know, get lost. You’re going to coma.
Yeah, if you get hit by a bus, I think that is a real pain point within this whole crypto ecosystem that I think the company that solves. All right, However, can Please mute?
All right.
Whoever to anybody, in that I just put the Zoom link, if somebody wants to come in, If you do come in, do us a favor. Make sure you’re muted, just because, you know, we love you, and we love your your kids, but it kinda makes for bad TV, so.
So, let’s see. Oh, that derailed me were what were we talking about?
Regarding the transferring your crypto windfall, let’s say, into a liability, like a vehicle?
And then there’s different methods of taking the title so that it’s not your gain.
Or you’re not dispose them an asset. I know what I was talking about. The pain. The pain point.
Yeah, it is!
I caught, you know, the get hit by a bus syndrome. It’s, it’s like, I know everything that’s gone in to getting fully deployed over the last six months for me, personally.
It went from, you know, a Commission check, at the end of the year, to where I had like 30 grand Somebody told me invest in XRP and I’m like, what’s XRP? Here?
Like if it’s crypto like I should know and I’m like, yeah, know, nothing about it. How does, how do I how do I buy crypto? And that’s when my journey began? He told me about Coinbase. Coinbase Pro X It is let you know. Treasure T wallet And so I started my journey. And everybody who everybody starts the same way. How the heck? Do I get my fiat knowledge from my bank into a fully deployed portfolio of coins? Crypto is hard.
There is, you are your own bank, and customer service sucks. You know, when things go wrong.
The only toll free 800 number is your own.
And, like I said, that usually doesn’t work out too well.
So, you have to be super, super, careful and **** on how you stay safe.
Now, if you look in the links below, I have a couple of guys that if you want some crypto consultations, both Geron and Nathan, they’re there, that, frankly, they’re so busy, it’s, it’s kinda, you just gotta get on their schedule, but they do such excellent work, and I’ve had so many people come back and say, thank goodness, that I got it, and they’re cheap, guys. I’m not saying cheap, they’re inexpensive.
When you consider about how much you could lose, it’s stupid.
Not to have your hands held at the beginning of this. Just trust me on that. Everyone that’s done, it has looked at it as an investment, not an expense, or you can say hundred bucks is too much. You know, I’m gonna keep it, and then you’re gonna lose it. I promise you, you will lose it times 10, so, but everybody starts on that journey, You go through, and you start realizing there are these things called keywords, and oh, what do you mean? You Can’t just copy and paste them on your computer, or take a picture of him, You know, for just so that you can you can have them later? If you ever lose him, and you have to restore your wallet, or your funds. And so all of these things that that you can’t do, but you don’t know you can’t do it as a newbie.
That’s, That’s a pain point in this. And so there are, there’s training, people who are going to hold your hand.
Now, once you get fully deployed, and you start realizing, and you do a personal inventory, and say, My bag of coins came from probably seven different exchanges. And then, I have them all over the place, because some cold storage wallets don’t hold some coins, and some have their own wallets online. And then you have apps, and then you have 2, 2 factor authentication, that if you get hit by a bus, you better have your wife cut off your right thumb. You know, and Freeze it, whatever.
But if if I gotta hit by a bus, John, and I’m not even kidding you I am not kidding you.
First page I have your contact information that I have told my wife if I get hit by a bus, with how **** I’ve been with my notes, if you just got this to John, Jay, he would know what to do with it. Should I? Do? that? Did that, just because I trust you. I have another person’s contact information.
But, but, so, John, that.
the pain point, and what I think is a huge business opportunity. Is, if you could think of something that would have the credibility of like Brink’s.
You know, bring shops to church. to Protect that. If there was a service.
That I could sign up to, to where I could actually be open with my, or there was some kind of secure way to be able to.
When? when, when I Everything, you’re not supposed to do, if there was a server secure way other than writing it in my Diary that that that, that I can store it. Somewhere that would be hack proof.
And then if I got hit by a bus, the only instruction, my wife would have, you know, one set of instructions, call this 1, 800, hit by truck, You know, and, you know, give them this cat special key phrase.
After you click your heels three times and give your dog a kiss that’s going to unlock the buried treasure and then they’re going to help you be able to access it and get it out. Other than that, I don’t know what my wife’s going to do.
I mean, I really don’t like your creativity, because what you created is essentially, third party custodianship.
We’ve got factor authentication, we’re using me and someone else as a backup, and I don’t even know it.
Which is fine, because, you know that I know enough, to, where, if I see your notes, I know exactly what to tell you. What.
Exactly, I never heard before, guys, I mean, this is the first time you explain this to me, But you can certainly do it that way.
Yeah, it’s, it’s, it’s been weighing on me a lot. You know, it’s OK.
There’s two methods I like to use, and let’s, let’s talk about briefly, OK, Most people understand, probate, I guess, or a will, so that your property interests are disbursed according to your will during a probate proceeding if you died or went into a coma lost your mind.
Lost at sea abducted by aliens as well. I guess a mm hmm, OK. So, we get that.
You don’t need to do that, because, the property does not have to be in your state.
You can separate the property of the kryptos into a structure, like an LLC or a trust, and take it out of your state.
And then, you can prepare a Will that identifies that property that’s not in your state, and bring it back into your state by mentioning in your will.
So, realize what you’re doing, OK?
And it does not have to be in your state. I don’t want it in my state.
I want my state to almost be zero dollars mm, it’ll never go to probate When I die or whatever it is.
I’m never going to permit what I want is the people that I care about to have access to the credentials in one way or another.
So right now, they can access the credentials by just going to a place and getting the credentials, just like you described. Your wife has access to a thing, or a book, or something, and then she knows what to do. It tells you what to do.
Like, one example may be, Here’s the combination to a safe and and go to this address, and you can access it. And they never let’s say, your wife never heard of that before because you kept it a secret That she has plausible deniability and all this. And, you know, there’s a lot of other things to consider.
There’s, there’s that, OK, which is credentials.
So if someone has your credentials, like for example, if I have a bank account with a lot of money in, there are a lot of cash flow in there and I disappeared and my wife needs to use it, well, she has my credentials. You can go on my desk and get my calendar out. She could see in there there’s some information, and she can login to the bank account.
And then she can do a couple of things she can write a check on, include the funds out, or she can step in my place and keep on using the account, even though I’m dead or something.
So there’s that. The other way, they can relate to that. If I, if I die and my wife knows my, my online banking information.
She can go in as if she’s me and in if, if he’s really mad at me, she should just know that teaching and wipe me out. She can’t go in the bank and identify yourself. If she’s not a sign on the account, which he does not need to be a sign on the account. She does not need to go in the bank.
All I do is access the account somehow. Even if she doesn’t have online access, all she needs to do is write a check on the account. She can literally forge your signature or Write Charlie Brown on there or stamp your signature or the funds from your account. It’s very simple.
Yeah. OK. So there’s that.
The other one is third party custodianship, which I’m going to tell you my way of doing this. And I’m not saying there’s a particular service that will do it.
You have to arrive at a contract that allows you to do it, and I may come up with that in the near future. But let me just describe it, if you went to and I’m not, I’m not promoting attorneys, I hate them.
They are bonded.
OK, they are bonded.
So if I have an attorney hold property for me or hold an envelope for me or a black box under a contract that it’s pretty secure.
And the attorney, I would hope I’m probably gonna go through an attorney who’s in a law firm and then 1 1 attorney. And there’ll be successive attorneys who have control over that custodianship and liability with maintaining that black box or envelope or whatever it is.
So if I disappeared, my children or my wife or whatever, can go to that location and I provide whatever’s needed to get access to that thing.
Yeah, Envelope a book, the attorney doesn’t even know what’s in there.
All his job is to take custodianship of it and here’s what’s cool about it. You get attorney client privilege.
Ah, yeah. I use that for iOS by the way, guys.
It’s cool.
So we’re gonna get into that too far.
But you can use attorneys for a lot of cool things. You don’t need them for legal advice. I hug. I use them for their bonds and their attorney client privilege. And I use their paralegals too for legal research.
But anyways, use them for custodianship of things that get access to the things that are valuable, and you can use two factor authentication with the law firms and that way, you don’t even need the law firm, The law firm can be a backup.
Just in case the two factor, you know it failed or something like you have, you know, you have me and then someone else you can go to.
So there’s, you know, John, I’m just telling you, we need to turn this into a business, all evangelize, the **** out of it as as a as a founder. I need three clones right now. I know you do 100, 1500 e-mails behind, I wanted to find. By the way, could you please respond? I actually have to go Search.
If it’s important, I have to search on your name. Or e-mail address to go find it. Yeah. Yeah, I’m sorry, guys. I was, I was informed by a little birdie that my new strategy needs to be to just call you like three times in a row and she’s like, Oh my gosh. Now it’s not going to work after a week. Yeah, that’s OK. I forgot their whole Tribe is in here.
I wanted to if I could introduce this concept now someone one of my clients called me to task Yesterday, OK, she kind of she said, OK, John, but uh, so how did you do it?
And I said, OK, OK, hold on a second.
And I actually felt like, I was in my 10th grade algebra class, and this is what I wanted my, my list of remember my members to remind me, of. Which I remember just now.
My, my 10th grade algebra teacher, by the way, guys, I got an A in algebra. Well, I’m not a smart person in math, but I managed to get an A She was just a really good teacher, and it was our first year.
She was like 22 or 24, and I remember one in the first semester or whatever. She was so nervous.
Anyways, she was like, nervous. You could tell she was like her first year teaching. Yeah, I remember it, because her name was flock.
It was missed!
Now, you can imagine what you know, 670 students did. Yeah, right. Did you do your ******* homework? You know, stuff like that. So, anyway, we got along just fine. But I got A’s. And I had to, because, you know, I was competing with my brother, and whatever. So, anyway.
So I felt like it was in her class, and that she was sitting next to me, laughing at me, because I’m trying to remember a very simple algebraic function.
So, this client is telling me, How do I figure out, what tax do I pay if she wanted to take out X dollars from her?
This Outrageous Windfall, she just got already from Kryptos. She had a small amount in there. Now. It’s this huge amount. And she wanted to take a little teeny tiny amount which is really 5% to 5% and do something in our house. That was a home improvement so, personal.
That’s exactly what we should be wanting to do.
Now, now, in her case, because of the nature of the transaction, there’s, it’s very difficult to legitimately avoid attacks on that. And she was fine with that.
So I said, well, Here’s how you would calculate it.
So I’m gonna give you the numbers, It was $20,000 Out of $400,000, now she started with like 23,500 good for her, She wanted to take out her $20,000 and do whatever, so, so I the thing is you have to back out your cost basis, yeah. how, how do you do that when, like, if if she’s gonna spend the whole 400,000, well, it doesn’t take anyone who knows algebra to say, well, OK, just deduct the 23,500 that you started with.
And then the balances, You know, 376, whatever, But you have to come up with a way to reverse that and figured out on the percent that she’s taking from the game. What would be a game? It’s not yet, again.
The $20,000, again. What percent does she need to deduct from that, to deduct or cost basis. And so I’m gonna, I’m gonna do the article, it’s going to be on … of coins, but I’m gonna explain it to you guys.
Yeah, so you just simply, I’m going to read, I’m half after read this. OK, sure. I’m reading it from the article to calculate reportable gross income.
After taking a small portion from the new principal, your original investment, OK, which is worth much more.
For example, you subtract the product, most bind together, the product of the original investment, and the amount you’re taking, divided by the new value of the principal.
So, you take, like the $20,000, she’s taken out, you divide it by the new principle, and you get a ratio, in this case, it’s 120th, or 5%. That’s 380, so it’s it’s 20 divided by 380. But we’re taking the other part of that.
We’re taking the 5%, which is going to come out to be, well, we’re not done yet. We have to multiply that by the amount she started with, which is 23,500.
So take 5%, and you’ll end up with 175.
OK, now that is the amount you back out of what is going to be taxable, so the $20,000 taxable, but it’s taxable at 20,000 minus, The 11, 75, gives you like eight 18,000 something 800, right, 1925 right, yeah. That is your gross income reportable taxable.
Out of the 20,000.
once you deduct your cost basis, you’re not going to see that anywhere else. And how did they get that? I went and I just, I’m on the phone with her.
I did them on the fly. And then I went and researched to make sure I didn’t ***** up, and I think I got it right, if you guys want to correct mouthy.
I think I got it right.
So anyways, If anybody any of you is better than me, you probably are. Please tell me.
But I think I got this right so if you want to test this out, you’ll see the the examples here.
But basically, that’s how you figure out the reportable taxable amount after you deduct your cost basis. When you’re not going to take out the full return now. Yeah, yeah. If you have short-term long-term, like, in her case, there was a five year period where she invested 23,500, five years. Whoops.
So, she has Stuart term and long term gains.
So, what you want to do is, that equation I just described, you want to do it for the short-term gains number, so, the money that you bought in during the short-term period, that’s one equation. And the other amount is the long term.
So, you have two equations, you do the same equation, both times, And then you figure out your tax rate, and then that’s your total, you add those together, and you’re done.
OK, OK, so, she’s still paying taxes, In that case, she would now, you can avoid that, but guys, I’m telling you. I can tell you how to avoid 100%.
But you’re wasting your time.
Pay the tax on personal stuff. Pay the tax on your living expenses, it’s OK.
Don’t pay the tax on $10 million or a million, you know, go put that. here’s your biggest risk. Trust me, your biggest risk is not having a way to re-invest the money that you once you get your gains that a crypto is and you’re like OK. I’m done with crypto for the most part. I need to get something to be responsible investor now, because that’s OK. What do I do? You would be stupid to go into the stock market.
That’s my premise on everything, If you guys call me on the phone, and we’re having a conversation, I’m always thinking in my mind. I’m never going to tell my client to go in the stock market. Why?
First of all, there’s no market, correct me if I’m wrong, know, your market, OK? So, there’s a couple of things you want to consider. Now I’m going to have some videos on this, but we can talk more about it. Yeah, there are four types of investments you wanna look into.
It’s private equity.
Which is maybe a share or stock?
That’s not on the stock market Same idea. not in the stock market. That means you sit down with your, your your broker or agent or somebody with the owner or his agent and you negotiate a purchase of a share of his company.
Yeah, OK. That’s a private equity doesn’t always look like that but just as an example.
There’s private equity real assets.
Like things you see, you drive around town, you see supply chains, you see suppliers, you see FedEx, you see infrastructure, OK. These are real assets.
Real estate is another one. Real estate is probably of the two things that I recommend people get into to re-allocate Their once they get their new windfall.
Is real estate’s one of them unless you just really hate it.
Get into it and there’s many, many ways to do that. I’m not gonna talk about that.
And then another one is private credit, which, again, I’m not really qualified to get into all that stuff, I’m going to have professionals on and we’re going to talk about all that.
But seriously, consider a re allocation plan into other assets. And that is your biggest risk, not having that developed.
Not exactly.
No, that’s excellent, But I mean, So what you’re saying is the time to The time isn’t when it’s when when the IRS bill comes due to figure this out the time to war game. It is now.
And, so, for someone to actually Study that strategy, understand it, maybe be prepared to deploy.
Is that, is that where you come in? Do you help people do that through a, my?
My expertise has been, for about 30 years, helping people, Assets are cash flow that never exceeded $5 million a year. So just understand who I am.
I am not a mid-level type investor. I don’t raise capital for large, $100 million deals.
I have to go to professionals to figure that out. And this is the first time in my life I’ve ever even considered doing that.
So, I’m kind of like you guys, I just understand, maybe a little bit more, because of, I’ve done that for small businesses. I’ve done that for investors and myself and my partners.
Hmm, hmm, hmm, hmm, So, I mean, yeah, I’m out of my league in some sense, but at the same time, I understand, after seeing thousands of situations where people could have been this thing. I mean, imagine if you were given hindsight when you were 10 years old. Hindsight of every important decision you could make in your entire life. Well, not awesome. Yeah. So, I kinda get a bird’s eye view of people that screwed things up, and they’re coming to me for help after the fact. And so I have to, I have to bury them. I have to put the fire out, and I figured out, most of it.
And in doing that, I’ve done a lot of things for my family and myself and my net worth based on mistakes I’ve seen people make.
But now, Excellent, yeah.
I get to look at their mistakes in hindsight without any liability, so it’s really given me an advantage.
So, I would just suggest that to that.
Stop being distracted by taxes.
Sure, I didn’t want to pay him either, and you shouldn’t, You don’t do stupid stuff, but don’t, don’t go out of your way to avoid the taxes more.
But more importantly, have some sort of plan. Like, OK, if you don’t know anything else, just think, Alright, I’m gonna invest in real estate. I’m gonna cause some guy that says I’m gonna call a guy that does that. If you guys don’t know who that is?
Connect with some people and I’m just going to recommend that Georgia, Real Estate Investors Association, Georgia Real is what they call it.
Subscribe to everything that you can find with those guys. OK, connecting to that network there across the whole country is not just Atlanta.
It’s everywhere. These are entrepreneurs, and real estate investors, They will tell you 20 ways to get into real estate. It depends on your preferences.
OK, so anyways, That’s one thing. Yeah. Georgia real, do you, do you have a website for that? It’s just, you can just Google it in Georgia Real or Georgia, Real estate investors, association, and even if you hate real estate.
If you think it’s a horrible investment connect anyways, because you’re going to be in the network of entrepreneurs that think like I do or think like uncle vigilante, you know?
So you want to connect with those people.
I don’t care if you have 10 million or $2 million, $50,000.
I mean, You want. you want to start looking at that, if you haven’t already? Yeah, that is called responsible tuition.
It’s kinda how I look at it is, yeah. That’s, that’s a good word that you brought up, because you know, my partners and I will laugh and I’ve, I’ve lost a lot of money.
I mean, I’m sure people that have done things and taken, I call it taking money out for a spin.
All right, so if I take, if I take my 50 grand out for spin or hopefully I’m taking someone else’s money out for a spin, right.
Because he’s better at taking the risk than me Hopefully he’s betting on me and I make a good decision.
But, if I lose money, we call it tuition. And we do that, and yet, we said that. And just because you kind of have to laugh, if you lose money, try to do the best thing you can, and you still lose money, you should learn from it. And the price of that is what you lost, and we call it tuition. Hopefully you learned from that. That’s right. That’s right.
Yeah, that’s, that’s why everybody who’s suffering through this week of crypto needs to just, just take a deep breath and learn from the mistakes that other people made back in 20 17 and 2013, and it’s just this four year cycle.
And I think my sense is that we’re probably good, for about three of these in a year to where you’re just going to end up, you know, getting crushed on your block foleo app.
And, I’ll throw out something to you, John, see what you think, Just kinda my new personal strategy, because I suck at taking profits, because I have, in my head, I’ve been having that little, you know, IRS notion in my head, So now that’s geared and I can think a little bit differently, thank you very much. But, but.
And this may offend some people, if you, but this is, look, this is, this is the uncle Vigilantes show, if you follow me.
If you follow me on YouTube, what you’ll get from me or interviews like this. And then, I like to, you know, since John got me started on this losing weight, I like to keep it off so I go for a walk and I also like a cigar. I smoke.
I know, I don’t drink anymore. So my only kind of ice I have anymore is really just smoking a cigar. So I used to sit on my, but my backyard and smoking a cigar and it tastes like an hour and a half and I’m like, You know what, I just need to move.
So I started walking and I started just have an avenue cigar walkin’, you know, like an hour and a half and then my channel watches and I’m still, I’m feeling guilty of that.
This is inefficient man. Now I have to, if I’m going to exercise or, I’m gonna get my cigar in, where am I going to find the hour and a half to do my show.
And so, then I got one of these gamble’s, to where now, I just combine it all.
So I go on cigar walks and I talk to you, I have some notes. I’ll walk in because I have cigar bits or spit.
So that’s what you’re gonna get.
You’re gonna be going to be talking off the top of my head, with a few notes of just, kinda, know, free form, and it, so I was taking a walk after the, the, after we, the first, I mean, today was really bad.
But was it, yesterday? It was really, really bad, and it was yesterday. The first really bad happened. And I started my walk, and I said, do you remember John Holmes?
I don’t know if you do jog, but John Holmes was was a **** star back in the seventies Who just had a ginormous, you know, what, and and I’m like, have you ever had diverticulitis?
It’s so painful, if you’ve had that, it’s just really painful, you know, it’s, it has to do with your, your cavity down there and getting in anyway. I said, I said, well, what just happened today was kinda like sitting on. John. Holmes lap. And so. I’m like.
Everybody, what’s ******* me off is everybody, we’re all bent over taking it from John Holmes right now, it doesn’t feel very good.
So I decided that I’m going to adopt a new strategy, because what I find myself being fully deployed in crypto is I don’t have any dry powder to buy the dip.
So, when everyone smugly, starts talking about, well, yeah, just consider it, you know, a gift, we get to go buy a crypto on, on sale, like, *****, holes. And, and so, I thought, OK, well, you know what?
Let’s learn from this.
I have no dry powder, and it seems like this goes like this three times a year.
When I look back at the charts, and for those of you who don’t believe that I am really good at charts, let me just share with you, this is my chart analysis, that allows me, I can, I’ve called everything, by the way, I can prove it, All I have to do is act like I’m a YouTube influencer and talk about how I have called everything. So anyway, those are my charts. And so you can see that, I have great credibility when I say that.
It seems like that happens three times, so I’m like, I am going to dedicate May 19th, as John Holmes Day, just to keep it up here, that do I want to be bent over and take it from John Holmes, ever again? No. So what I’m going to do, is now I’m gonna on purpose with intent. Whenever I have my bag a crypto, or a coin, Let’s say that I invested $100 in the coin, I am going to be very disciplined when that coin gets to two X.
I’m going to take, I’m going to take 25% of the total, and I’m going to turn it into U S D T.
That’s going to be my dry powder for the inevitable dip.
So that’s my John Holmes Bag.
So that’s that.
That’s what I suggest everybody does, because, you know, I’m such a master investor, this is not investment advice, but I’m just trying to war game it. Right? Because that’s what we should do when we go through and, and we get our, our negative experiences, We should learn from it. So I’m gonna take that. And now the hardest thing for me is gonna be to watch in a bull market when everything starts going up.
Again, being able to look at that, that, that, let’s call it if, if, if I invested one thousand, it went to X So at that point in time, I’m going to be disciplined, and I’m going to take 25%, which is 500. Put it into my John Holmes bag, which is going to be $500 in USD T Now, I have to stare that in the face every day.
Not going up That’s not gone down, but it’s not going up and all my other coins are probably going to go up, right?
But if I do that and I get disciplined, I’m always now that I don’t have to worry about the profit, right? I used to think that 25, or that $500 now, I have to take, you, know, a percentage of that, and put it in another IRS bag, but now, I know I don’t have to. So.
so that $500, then, How great are we going to feel when you have the really big correction of 30 to 50%, like we’ve realized, you know, that this past week. Now you can swoop in and truly have some dry powder to buy the dip. What do you think of that strategy? That makes total sense, and I’m not an expert on this. There are some really good experts.
You know, Bitcoin Academy, crypto J is really good at this. He, he’s a scientist when it comes to it, but I generally just realized that like, you’d like, most people do, OK with it. When the price goes up against the dollar, I’m going to start taking profits.
I’m not going to wait and try to, time to market and sell. At the top. I’m just going to take profits, which I did.
I took profits like maybe six weeks ago, I took it over a period of time.
And yeah, I had the dry powder. So now, when the price is low, I’m going to be buying back in.
Yes, so you did that. So yeah, you were definitely.
yeah, it’s very unusual for me to do that, but you almost can’t avoid it.
I mean, gosh, it’s such an all of us, you know, most of us did avoid it but that’s because greed has kicked in and that’s where that’s where seriously open conversation to everyone. I mean, we’re, we’re greedy people and we think the tree grows in the sky and we think it won’t happen to us and all of that and we don’t necessarily learn from our mistakes. So, the next time, everything goes green, we’re going to be like, Oh, yeah, I’m gonna make everything up now.
and, we just have to be, that’s why, for me, I’m going to adopt the two X strategy. I’m, yeah, I’m just going to, it’s going to be automatic so I don’t even have to think about it. It’s just going to be boom, OK? I see it’s up, that’s two X. I’m going to take that, that’s my John Holmes bag, and then I’m gonna feel really, really, smug when I can buy the dip and then I’ll be able to tell everyone We’ll just buy it. It’s very disciplined. You Want to you want to adopt some set of rules like that, and follow the rules without any emotional involvement. Right? Just follow the rules.
Don’t have this delete now that does lead me to a question for those people who, Who Did make an investment, and then they took their money out. Let’s say they had a reason.
So let’s say your client invested that 23 5 um, You know a week ago and that 20 35 we expected it to go up and she invested in some coins, and now she’s fine in that 23 5 is worth about 12 grand.
You know, but she has an emergency so she needs to take that out. Does she get to, if she has to pay taxes on the gain, does she get to declare that as a loss?
It will be a loss, Right, OK, so it goes both ways Everybody, that has got both ways, Yeah, OK.
If she has to sell, don’t sell because you, your value goes down, obviously.
That’s kinda silly stay the investment.
No, I mean, it’s not until you sell that.
You have to do all those calculations Yeah, that’s right, so They call it what dimond Hance No, you just don’t sell Hard on me.
I need a Anita hottel some of that Yeah, that you can also you can take money out like I explained you can you can get into a liability, Which is a car or house.
Right off your mortgage. OK, people want to do that, but OK, don’t pay your mortgage. I’m not going to get into that.
There’s a lot of things as to why you don’t want to pay off your mortgage, but don’t pay on personal debt with a windfall.
Instead, acquire an asset, an asset is the house next door, either landlord, OK, Yeah, simple version of it or getting some other assets that you can research and team up with people and learn how to do it Get into assets first, OK?
Take some of the cash flow and offset your debt liability without paying off your debt first OK, OK, that makes sense to me and and I actually hit the brakes. I think when you and I got together, man, When did I first personally meet you maybe 7, 8 months ago.
Yeah, It’s been that yeah. I remember you telling me about the house because I was getting close. I was like, you know my dad always hammered into my head pay off your house you know?
and then when you told me that ice I stopped send an extra money to it. Because You have some personal debt.
Like whatever you can easily, um Set off by income.
Now maybe it’s from your job, but ideally the income to pay off your personal debt should come from assets Have more debt on assets.
Have less debt on personal, OK, car things like that, OK, OK, OK, And for those people who are curious about At at at what cycle? Do you do take profits?
Let’s just look at my chart, um, No green, good.
Read that.
OK, now that I’ve educated you further, is there anybody in the Zoom chat that wants to come on off mute? Thank you for. Thank you for doing that. By the way, I unmuted everybody. Because people were coming in, and we’re hearing their kids and such. So, if there’s anybody who wants to come off mute and ask John a question, please do.
If not, you have to suffer through more me.
John, I have a question. Yes, Greg, looking to sell on some crypto, and paying off some personal stuff.
Wondering if there’s an advantage to, say, taking the crypto crypto directly to Coinbase and selling it USD, Or convert it to USD C then send to Coinbase, and then switch to USD from there.
Well, any way to dispose of an asset, to pay off a personal debt.
If you’re talking about, if your idea is to avoid attacks, it doesn’t matter how you get the dollars, because you’re going to pay off a personal debt if that’s what you’re doing.
So, either way, you added up your Uncle Bob paid it off, it’s still your tax liability.
Right, I’m expecting to pay, go ahead and pay tax on this. I just was wondering if there was an advantage to either of those.
Just do it with the least fees, OK, my suggestion is, for paying off personal debt, you’re going to put yourself in a possibly a bigger tax bracket if you pay off your mortgage, for example. That’s why I also recommend, just take some time. It wouldn’t take you but maybe a few months at your leisure to find out how to put a small amount of the money that you would use to pay off your debt.
Like a, like, say, $150,000 of your mortgage, you could take 15,000 of that, and put it into an asset that would pay off, make the mortgage payments for you, and then you would not be in a different tax bracket.
So just something to think about, OK.
And are you able to give guidance on that through consultation, through, light up the plan, I’ll suggest how to do it for your situation. Yes.
OK, and so people would be able to find you at ace of coins dot com and book a consultation directly through there. You can book a consultation, it will link to privacy, fight dot IO. I’m booked through August, though. So do the best you can. If you want to e-mail me directly, or try me on Telegram on Telegram, my address is at JJ.
Singleton said That may be another way or just joined my ace of coins group on Telegram. And that is only an announcement forum, where I announced my Thursday evening calls.
So I’m like, I’m actually part of those, an LLC for me, last year. But I’ll save that for the big items. I’ve just got some personal stuff. I want to clear out.
Yeah. So, Greg, have you been unhappy with your LLC and how that process went?
Yes, everything’s working as it should be. I have not taken profits out yet, so I thought it was going to a couple of weeks ago, but I missed my target by about 50 bucks, so I Still have it. All right.
But, um, Yeah, looking forward to.
So, getting some seed money out.
It’s going to be exciting. I talked to a lot of people that have some really incredible ideas of what they’re going to do with the new windfall.
So, I’d like to see those come to fruition next year.
That would be great.
That would be great.
So, the one thing, John, that I was thinking that, when, when you’d mentioned Georgia Real Estate Investment Association, Maybe they’ve already figured this out, but I recently went through the process of co-signing for my daughter’s first home.
And, first of all, what, I mean, I’d set a budget at 250.
And I’d put my, put an offer on a home, and I was, like, fourth in line before, I mean, it was crazy. It took like two months to even get an offer. You know, so it’s I’m in Florida like you are.
so I don’t know if it’s that crazy everywhere else or just everyone wants to come to Florida and you know, a matter of a 3 bedroom 2 bath.
It’s going to be at least that and usually people are given, you know bidding, getting in bidding wars, and it’s over through that process.
That was when my portfolio, my crypto portfolio was getting to be rather impressive before this crash, and I was like man The real estate company or the lender that figures out how to be able to allow a guy like me or people on this.
You know call or watching to?
Pay their downpayment with crypto is going to win big, but the banks they don’t want to look at crypto, They’re not gonna look at crypto, so Are there real estate companies out there or lenders out there, John that you know of who might play in crypto? Well, I have a partner that he and I set up a service that does this and we’re the only ones that do it right now that I that I know of.
So we actually work with escrow agents or banks or whatever and we will liquidate Kryptos into escrow so that you don’t have a gain.
We don’t do there’s no 1099 reporting, we do it legally.
So we can do that.
So if you want to go use Kryptos to buy real estate, which is what I recommend, go through escrow, we can take your coins and put them in escrow for you and have everybody get, be happy to do the closing and it’s all good. There’s your God’s gift to humanity, I square.
I mean, serious, you know? You actually solve problems.
So, anybody, anybody watching right now, it just doesn’t have to be Florida based, right?
If somebody’s buying doesn’t matter property and you want to use crypto, you can use John Service Jade’s weekend, where in the world, we could take a coin, coin’s whatever you want and we can buy them from you and put the money into your escrow account So that you do not have a game.
By selling your coin Selling your coins.
You’re not actually selling Gosh, Yeah, That’s a big **** deal.
and so then let’s go now now if you want to That’s considered OK.
So let’s just use my daughters scenario.
Right, 250,000 bucks, and So I did the because you know you you taught me I am like, OK, Interest rates are really low I know what I can do with the money. Instead of putting 20% down the PMIs like 80 bucks a month And the market is going like crazy So I thought let’s Let’s just put 5% down instead of sitting down.
Yeah, so I put the 5% down But let’s say I wanted to put $50,000 down and you’re telling me that?
I could use you you guys.
To it OK, let me back the bus up.
I need to satisfy my lender that I have $50,000 to be able to get that $200,000 loan.
Then mm I would work with you beforehand to get that money into escrow and then I could, when I start my application process with the bank then I’m just telling them, it’s in escrow already, right that’s the. That’s the cleaner way To do it.
Yes OK so I would we would we would convert everything and put it in escrow.
first before you ever open escrow, put a thousand bucks in there make your offer and in the meantime let us liquidate the coins, put it in escrow for you. So, we add to the thousand dollars, That’s what you want to do.
If I actually get it, Yeah, so OK, OK, do you mind discussing your fees on that?
Yeah, Well, you know, we would charge around 15% now.
The reason why we do that is because, you’re gonna pay 39% if you’re not use it. If you don’t know what you’re, if you’re just going, like traditionally, OK, Yeah, we were easily able to charge 15%.
I will say that my clients, you’d be able to do this with 0% and not using that type of service.
So really, this is for people that haven’t understood how to structure what they’re doing and we already have it. So you can just do it shooting from the hip. You don’t actually have to plan ahead. My clients have already planned ahead. They may not even know this.
They have a structure that I’ve set up for them where they can do this transaction and have zero fees.
Yeah? This, this is, this is a massive.
This is worth the price of admission. Everybody know? which, by the way, if you’re visiting, the price of admission is, can you please hit the like button down below.
Please hit the subscribe button down below, and maybe just maybe let’s see, we’re at one point 9 8000 subscribers. Maybe you can tell a friend or two that there’s this … channel that uncle lot it’s uncle vigilante now.
But uncle vigilante channel, it’s a channel on YouTube dedicated to newbies to where I’m just documenting my journey and, and sharing it with you, just open kimono. So that you can learn from my mistakes, my wins, my, my connections, my interviews, and hopefully enrich your portfolio through the process as well as mine. So help me grow the channel. Not that I need it to grow, because I don’t monetize anything.
But, you know, If one is good, too, is better, I’d rather see 2000 subscribers, and what does.
So So, John, the price of admission is what you just said.
So, all of us who are in crypto and realize there’s going to be a point in time to where you, you, you, you, have these gains, now, there’s a way and 15%.
to me, John, wouldn’t even think about it. Yeah, it’s like, it’s like that is such a win to me, because I’m able to use my crypto.
I mean, I don’t have to convert it, to feel first and go through all the bull **** that, that, the banks going to ask. And the IRS is going to require. I can do it seamlessly and I can still with confidence go to a lender and say I want a $200,000 loan, and they’re going to say well. wait, where’s your down payment?
I can point to John or whatever entity you are, and I can say it’s already in escrow they just say it’s an escrow.
We can clear $7.5 million worth of crypto coins per day per client the most we’ve ever done, and we just started this maybe four months ago The most we’ve ever done was a million dollar real estate transaction I think last month.
John, would you mind a follow up? Show where we just the whole subject is is on that? I’d like to have, I’d like to have my good friend, Mike, who was on a show recently with me, but he is he owns that’s called cuccinelli properties out of Richmond, Virginia.
And they he and his family, his dad or have been real estate investors for a long time and he and I were just having the conversation this week that the company that figures this out is going to make bank and so he’s trying to figure it out so I’d love to have a call with you and John and and and know his cousin is a tax account That happens to be just cool as ever. He’s, he’s, he’s, he’s won us in that, you know, he’s just the messenger, but he really worked hard to try to keep our tax liabilities down. So I think any true drops you can provide and if he knows about this too, I just think it’s good for everyone. So, I’d love to, I did have one escrow agent called me and she was open minded, she’s an entrepreneur.
And I said, I explained, we’re doing this now, but I anticipate within about a year, other escrow agents will figure out how to do it.
Now, it did take us about six months to set this up, it was a project and now it’s all engine.
What’s that? What’s it called? So I can read.
That throws leading to you can ask me that because I’m not going to tell you OK, private organization. We’re not going to advertize it like a retail website got another club We don’t want to get interference from the three letter friends.
OK, I like that and I respect that having my own little private club recently set up whether I Totally get it and And you know what?
Week We can, So she asked me about it and she said, I don’t want a copy, I just want to be able to use your service, but I think a lot of escrow agents are gonna say Hey, There’s a niche market out there. If I can do that, then yeah, So we’ll have competition probably next year.
But right now, we’re the only ones that I know, that is worth billions dollars on this show. I mean, I want to, I want to have, what do you think, next Friday?
Yeah, next Friday? Sure, let’s do it next Friday. That would be. Make it a day and I’m gonna pre promote the **** out of it.
I’m gonna say if anybody out there has a mortgage, or is is is going to be buying a home and you’re in crypto and you’d like to be able to use your crypto maybe not this week or next week. Let’s let it rally a little bit, but we’re gonna be back. I mean, that’s the nature of this, of this ecosystem, is it’s very volatile, but it’s going to be back.
But if you’d like to be able to use your crypto for a downpayment on a home, on a property, on an investment, we have a way to where you’re not going to be at it. It’s, it’s, it’s.
Getting that, let’s say, $50,000, if I have this right, is not going to be liquidated to where it’s a tax event. Correct, right. So, yeah, we could do anything. We can buy a yacht, we have a service that actually will flag the yacht and set up the whole budget and crew it and everything. And insure it.
So you know, it depends on how much money you’re working with.
But we can go down to the level of a car.
Carr’s yachts.
She houses, it doesn’t matter.
It was funny is, the lower the ticket item, the more difficult it is.
So a toaster oven, don’t call me.
No problem. Right? Right, Yeah. So, so it’s, it’s, it’s a percentage of the.
Get it. To avoid the people that want to use your service for, you.
know, something. a $5000 or something, I mean, you’re not getting for that, No, no. Yeah, for 20,000, But, but if you want to buy a car, or pay off large, dead, or, Or By an acid, I mean, I really hope people want to buy assets Most people, so far, just want to buy a house or pampa mortgage define we do those two. If you’re going to, If you’re going to reach that seven million mark, seven point five million mark, it’s going to be a lot less than 15% as far as our fee goes pride.
Yeah, if you’re already structured and you understand how to use an LLC the way I set them up, you’re not going to even need to do that type of service because you’re already insulated from the tax liability, OK, so, so, just, you know, this is for anyone out there who just, no, it doesn’t have a way to do it yet, or whatever, you just heard about it or something.
Yeah, but no, I don’t know.
It’s, it’s, it’s like just gone through the process myself recently to know that I can take my, because I want to keep it simple to know that I can take my gains in crypto and be able to put them as a down payment on a house.
Just to keep it simple through an investment vehicle that you’ve set up. That I can then just point.
The lender to say that’s where my money is.
It’s in escrow and you can go verify it, it’s ready to be deployed at closing.
Now, approve me for my Hello, I mean, that is powerful.
That is such a gift to do the … tonights out there.
Yeah, yeah, it’s going to be exciting. So, do something good With that money.
Do something good.
Yeah, yeah, so, let me see So.
So, so, is is Neha.
I hear you Seth but, I’m thinking a little bit differently.
But, I hear you, he says, it sounds like, set up the LLC and buy the house through the LLC and not have to pay the 15% fee.
That’s, would use your LLC to move money around when you’re, when you understand how to do that. It’s very simple.
Then, when you take title, don’t put it in your name, or if you put it your name, record a mortgage with a lienholder, which can be your company or another company or trust or something.
Right? Right.
It’s awesome, OK, is there anybody else in the, uh, in, on the call, who’d like to come off mute and ask any questions, now’s your opportunity.
Hey, John.
Hey, John, This is Adam. You helped me to set up an LLC about a year ago or so.
I just saw something recently about the IRS talking about how they wanted to get it to where any transaction is for businesses, uh, with no cash coming out of crypto at $10000 or more that they wanted to have that reported.
Now, I have everything set up personally, structure through my business. So nothing is actually in my name.
Mmm hmm.
So I was just wondering, like, what additional measures might need to be put in place at that point?
Because, uh, so far as I understand that my businesses, a non filing entity. So I wouldn’t need to file anything. that’s correct, and say, I am getting is already doing that. This is nothing new, the IRS has already doing that.
You’re only gonna get it.
You’re the account holder or the contracting party is already gonna get a 1099 for any amount of money that it sells when there’s a disposition of assets.
And that’s why I set these LLCs up this way because the 1099 does not create a tax liability, does not create a filing obligation.
The thing that creates a falling obligation is when the LLC files a return.
So it doesn’t matter what they do on there. And so long as I’m not filing anything, it doesn’t matter. Correct. I can show you dozens of 1099 I’ve received over the last 20 years.
And I just keep them in the folder for the each company I’m using.
And most of my companies don’t file returns, because they’re all pass throughs.
I use just the way I have my clients using them.
So when you get everybody on the when you file, then you’re then you’re on the hook when you file a return.
The Iris has to reconcile what you reported against what was reported on the filer.
So the 1099 is then reconciled against the tax return, and those have to match, and everything’s good.
If the 1099% in and the in the report that the party, against whom the thousand 99 reported, like the taxpayer, your company mm, hmm. Does not file a return, 2099 does not have anything.
It doesn’t create a reconciliation process.
Wow, I don’t know why, I don’t know how to explain it.
But I’ve just discovered that over 30 years of, you know, right, I can do IRS agents.
And everybody in that industry, to conclude that. and I kinda guest in the nineties when I was doing it, and then I realized, well, heck, this is, this is where people don’t realize.
the tax liability is not being created by a law that’s being created by your accounting practice.
That’s why I can take a company that’s being literally taken down by the IRS with a tilt take a tilt take is when the IRS just levys everything that’s coming in from your merchant account.
You don’t get anything.
You can’t pay your employees, or keep the lights on.
So, I will come in there, and all in one phone call, I will have the client in a new bank account with a new company the next day, or the next week.
Sometimes, and I will reroute all the cash flow to the new company, make the client still the same owner relationship. It was an old company that’s being levied against.
And then the iris will be cut off.
That tilt take stops and then they know it. They can see everything I just did.
Then they’re so nice. And they come to the client. They say, Hey, could you work with us on a payment plan?
And we’re like, well, I don’t know, I don’t have any money now. You know, so, so it’s, it’s just right in their face And I’ve never had a problem with that. So it’s really, it’s much easier to deal with somebody, why structure something and I’m going forward and he’s gonna get rich on something. Or he’s going to deal with future cash flow.
So it’s, it’s hard for him to believe that I can do all those things. Yeah. The guy that was on fire. I fixed this problem in one week, and it looks even better six months later, and it looks even better a year later, And now the guy who called me saying, Hey, I got all this money, I was still says like, oh this, and that.
They don’t know what to do about it, but they can’t collect it from me, But the guy setup who’s gonna get rich, he’s like, Well, OK, it sounds pretty cool, I’ll take your word for it.
And he doesn’t, he’s not going to understand it too like three years from now.
Right, well, we got, so Yeah, don’t be intimidated by all this Rhetoric on the internet, they’re already doing it. It’s like what you see on the movies, when you wire $3000 or $10000, there is no threshold on reporting.
You could be you could be putting $185 in your bank account every week from a paycheck. You’re getting from this job, this menial job. Yeah.
And then maybe one time your uncle Bob gives you a thousand bucks for Christmas and you put that in your account, and that’s going to get reported to the Financial Crimes Network, and you won’t even know it.
Yeah. Because it was an irregular transaction.
No, because it was over $3000.
Wow. The system is not what you think it is.
Hey, is your other, Is it privacy, fight dot com, privacy fight. There’s privacy, fight club dot com, I believe. And privacy, fight dot IO, we’re doing a bunch of changes right now.
So, you’d have to kinda check, I haven’t looked lately, Privacy, fight dot IO and Fight Club. And then privacy fight dot IO.
And the Privacy Fight, Flight, Fight Club is eta dot com.
It is a dot com.
And privacy fight dot com, I believe. He’s got. Oh, yeah, it leads to privacy, fight dot IO.
And on that, you’re going to see the video membership, and which is cool. I mean, most of you guys are on there, anyways.
But I do put some content, I don’t want to put too much technical information and good research stuff on the free side. But on the paid membership, we have really good content there.
But if you go to the privacy fight channel on YouTube, privacy fight, being one word, You’ll see a lot of, like, the opening video we did here on this interview, this young lady up there, So, I put some content up there, Just like, if a news item comes up, I get a bunch of calls and e-mails, and not that I mind answering them, but it cues me up as to what’s popular, so I’ll do a little video on it, too.
So is it its privacy by, uh, looks like there’s a free consultation here You can schedule a call OK, so that’s yeah, so on YouTube.
You have like 2.21 thousand subscribers, right?
Yeah, OK. So I’m gonna. that’s the right one.
Let me just copy that and I’ll drop that in the, uh, show as well, you guys can go to it, so sign up to just sign up to that guys.
And so, really, you are, you’re a guy who, when you’re your hairs on fire and, and, know, to go to, you’re going to be able to, say, take a deep breath. Let’s take a look at your, your, your, your statement of facts and, we’re gonna go ahead and solve for this. And, you know, nobody’s, nobody’s going to jail on this story at least right now. … case, I can tell you the first two years I did this work professionally.
The ugliest cases and I got a lot of them were people that were facing jail for contempt with the IRS because they didn’t handle themselves correctly.
And in some cases, I actually walked into the court and talked to the judge myself, and got the person out of that situation.
And no one’s ever been punished or penalized or gone to jail or anything, in any of those situations, and I’ve handled over well over 30,000 types of collections in cases and disputes and ugliness crazy stuff.
Everybody listen to that over 30,000. Yep. Types. And I couldn’t do that by myself. I’ve had really good people working for me.
And then I trained them and they did the work, I did the core work and they help, you know, facilitate all the communications.
But, yeah, it’s been well over 30, but you’re not an attorney.
Nope, not You’re not an accountant.
I’m not an attorney, not an accountant. I do not bill by the hour. I don’t take an interest in what my client does, so if he gets rich, I don’t get a piece of that. I don’t want a piece of it. If he loses money again, it’s not my responsibility. I don’t think anyone’s lost money because of what I told him, so, but yeah, I have certain rules I follow.
So on your on your privacy bite dot IO that you have a paywall. So, what, what is the investment, not the cost?
What’s the investment for people to get access?
The investment is a couple hundred dollars. If you want just, I priced it in three levels. There’s basic, premium, and ultimate.
The basic talks about debt collections, and liabilities, and getting out of it, putting out the fires, and there’s just a lot of content on that.
Some of it’s technical.
Then, the premium gets into a little bit more. Like, for example, I might talk about equity stripping because I’m not going to separate equity stripping when I’m going to put out the fire. I put out the fire and get you out of the hot water, or whatever the problem is. And then we talk about equity stripping and re-organizing what you’re doing.
And then when we get into the ultimate level, this is more of your crypto investor type group.
Your niche, OK, so it depends on, you know. But, yeah, I wanted to really develop that out. In fact, on the ultimate level, which I believe it’s $600.
I mean, the way I look, it is like this. It’s free.
Because you guys, $600, you know, it’s nothing, when you’re done with the investment.
I wanna, I wanna bring in some people that can talk about what I would call mergers and acquisitions that can do placement of millions of dollars of capital into private equity.
Because it’s not my expertise, but I can bring in people and we can talk about some plans and connect you in, and this sort of thing. So I know a lot of people are going to have some money too.
Well, at least last week. Well, I mean, I think a lot of you guys out there are cool cucumbers.
I’m sure you saw this coming, OK, and you’re not newbies, even if you are newbies, I think you’re a little bit sophisticated from people I’ve talked to you.
I think most of you guys are somewhat sophisticated.
And you saw this coming and you still have you have that dry powder, because you took your profits there.
Some of them, and you’re getting in there and saying, Yeah, great, thank you very much. $39,000, Bitcoin. Yeah, you’re talking to me. 6, 6 months from now, by the way, you just You just started talking to me in the future. Yeah, now I’m still John Holmes. I was not the. Smart one with the Dry Powder. I was fully deployed. But you know, we learn.
And saving money. It’s because I haven’t so.
Exactly and all this, all the machinations, and all the drama that you’re experiencing right now, Newby or Not, in three years, when you tell people the money you made, if you want to. Yeah, recommend. But if you have a vague discussion with someone about it, you will just look like a genius.
No matter what you look like right now, you’re, like, a genius. And you don’t have to be. Yeah.
Well, I just keep going back to I remember like, I’m a big fan of the dollar vigilante, the crypto vigilante Jeff, Berwick, and Raphael Leval today, Libya Liberti.
Um, and uh, you know, they were talking about Bitcoin in their newsletters, getting in when it was like 2 or 10 bucks, something like that, huh. Right, you know, and so is, you start thinking about that.
And, I look at them, like geniuses, right? Absolute geniuses, right?
And so we’re sitting here, we just got, you know sucker punched, but, even at, let’s say, you bought it at, at $57,000 mm last week, or 50, 50, 5000, last week, 10 days, ago. Whatever it was before, you know thank you Ilan, came out with that stupid Tweet.
That that started the Cascading.
To to take out all the leveraged you know, investors, but but when you when you take a look at that 55,000, there will be a day when Bitcoins at 300,000?
Yeah, I think It’s going to be soon, too.
Yeah, and so, we will get through this, everybody, because we’re not gonna sell, you know, And this just goes into a war story. We all have our collection of war stories now, and we can say, We were part of that.
I mean, honestly, this last week was the worst crash in history of any asset class of any year, any decade, in a century.
This, last 10 days, was the worst asset crash ever.
And I don’t think anybody that’s on this zoom call is going up and jumping off a building, no, now, why man were just Holden?
Because we know we’re going to be, where we’re going to be neat and John’s services here in the near future. I’m going to use you, man. I love this. Esker, I want to actually, I can’t wait till next Friday.
So we’ll set it up, we’ll set it up, it’s going to be a blast. So, everybody, mark your calendars next Friday night, 7 0 PM. I think, if there, is there anybody else in the, in, in, in the Zoom chat that wants to, go off mute and ask a question?
If not, if not, we’re gonna call it a night. It’s 850 John, you’ve invested two hours with us and I thank you as always, fine, Thank you. You are, you are you. You’re just awesome. I love you, man. So OK, thank you.
Everybody, Really appreciate meeting all EU new new people, and I didn’t know that there was going to be a group date tonight, but I’m really glad it was. So, you guys already know John really well, and are as finding him as I am. So those of you in the chat, who don’t know John, all of the links are in there. And I’m telling you, he’s just magic. He, he solves problems. So all right, everyone, John. Thank you. Appreciate my pleasure.


1. The video is a live session discussing market trends in the crypto world, the presenter explains his thoughts on the market downturn and how it’s part of the cycle.
2. The presenter advises viewers to not invest money they can’t afford to lose, indicating potential fluctuations in the crypto market.
3. The session includes a thank you note to Mark Wilkinson, who sent the presenter a couple of nice cigars.
4. The presenter addresses some of the IRS guidelines about reporting cryptocurrencies. The IRS treats cryptocurrencies as property, similar to gold.
5. The importance of understanding beneficial interest is explained; if one cares about an asset, they still have beneficial interest and thus, potential tax liability.
6. The presenter provides advice on dealing with taxes in the crypto world and talks about the complexity of tax liabilities when trading cryptocurrencies.
7. The use of Coinbase and other crypto exchanges and their tax implications are also discussed. Selling coins for US dollars on Coinbase can lead to a 1099 form, causing tax implications.
8. The presenter explores the idea of setting up an association for liability protection in the crypto world.
9. The presenter discusses various strategies for handling profits from crypto investments. He emphasizes the importance of having a plan to reallocate funds into other assets.
10. The session ends with a discussion about charging rates for their service, suggesting they charge around 15%, arguing it is more cost-effective than the potential 39% if taxes are not handled correctly.

Leave a Reply