U41 – Discussion about Wealth and Risk Management 0:02 Kane, I’ll give you guys know the intro briefly. My name is John Jay Singleton, and I was invited to for the group to discuss my strategies for investing a cryptographic currency managing that type of portfolio. 0:13 And then likely asse…

U41 – Discussion about Wealth and Risk Management
Kane, I’ll give you guys know the intro briefly. My name is John Jay Singleton, and I was invited to for the group to discuss my strategies for investing a cryptographic currency managing that type of portfolio.
And then likely asset allocation, which is what I Typically get involved in lately in the last few years, has been been more on that subject. So. Thank you, Christopher, for explaining, and so we can get started.
Let me just tell you a bit about myself.
I live in Florida been here all my life, mostly, and I started doing this work about 30 years ago, because I noticed there was a niche market, or a market of consumers, that were just, they lack knowledge on credit and finances. I didn’t have much back then. I didn’t really know what I was getting into. So anyways, I picked a niche market.
I developed that out, and it kind of turned into what it is now, and I’ve developed strategies that allow people to change risk.
And let’s just say that what everyone cares about so much is taxes. Let’s just say that taxes are part of the risk, OK? There’s other types of risks being sued.
Another type of risk is parking cash in the bank and not knowing what to do with it, Another type of risk is taking on the wrong risk.
For example, if you pay cash for an asset, you become the lender by default, right.
And if you don’t understand what that is, then there’s a lot of things that can happen or missed opportunity, let’s say.
So, my uh, I’m an entrepreneur, I’m an investor, I’m heavily invest in cryptographic currency. I have a net worth, that’s usually around $3 million I don’t. I’m not a super rich guy, but I’ve been doing this for about, let’s say since 20 13.
I’ve been buying Kryptos, I’m not an expert in Kryptos, I understand technology, I understand how to write computer code, so I understand the technical aspects of it, but I just, I’m not a person that is an expert in writing a blockchain, OK. I wouldn’t do that, I need other experts for that sort of thing.
My focus is on, the way I like to phrase, It is, risk management.
So that means, if someone comes to me with a particular problem that involves money, or a similar related type of risk, then I’m going to come up with a solution for him. And usually that involves writing a legal document or a contract.
My first step to help someone avoid risk, let’s say it’s us a small business owner, or it’s an investor. My first consideration is the cost of litigation. So, most everything I do is geared toward avoiding the cost of litigation.
And I’ll just, I’ll leave you with a brief story and maybe we should help guide me if you would, Chris, for maybe with some questions. The brief that this is going to give you an idea of what I look at. So about a year ago, somebody was referred to me and he’d never became my client. But this is the conversation we had. He said his attorney told him, he needed $3 million of litigation insurance.
So I, I don’t know this person. I was only talking to him for NaN, right?
And I asked him, who was it again that asked you for litigation insurance?
And he started laughing, and I said, well, what do you think he’s going to ask you for? Right? He wants to get paid, That’s what attorneys do billable hours, and so that’s actually one of the major risks I look at according taxes also. But still, so I said let’s look at this.
What is the risk and he explained it was this customer in that business, he was and the customer has a propensity to Sue.
So I said, All right, well, you know, as well as I do, that, if you have a good relationship with your customer is probably not going to sue you. So how do you get that? Have good training? Have good customer relations. Have a good policy. All this stuff, refund policy, whatever that is. So he goes, Yeah, I got that. And I said, Now you need to also have a written contract. Do you ever written contract for your customer? And he didn’t.
So then he realized his attorney wasn’t really give them the full picture. He’s almost setting them up to go to court. Right.
So I said, have a contract and not just have a standard customer service contract, have a contract that has an a non binding mediation clause.
That means that your customer has to work something out with UPS a dispute, and if you can’t, yeah, you guys have to agree to bring in a third party that’s neutral to work it out, help you work it out. If you don’t do that, you both lose the right to Sue.
If you try to sue first, you both, you eat that person who did that, sood first, loses the right to Sue and mediate.
So, it basically has to shut up, OK, so this really reduces the chance of someone going to court, and it’s not so much about not wanting to go to court because the costs maybe cost of litigation, maybe you might lose. But it’s also brand name recognition.
Why do I want my company dragged through court, even if it’s public record, right, even if I didn’t do anything wrong, or I’m in the right, Who wants to see his company name there? And now, there’s a question by customer, who just happens to glance it on the internet right now. People, are they just Google stuff on the Internet, right? Right? So I said, OK, so we do all that. And he started, he starts getting a little, actually getting a bit angry.
Not with me, but realizing that his attorney didn’t really give him, like, a whole view of how to manage risk. He just said, I’m your guy, you have to pay me to manage risk, right? Or, they say, you have to buy this insurance policy, you know. So I said, let’s do one more thing.
Let’s have the best contract for your customer, the best customer service, but let’s export that relationship away from your core brand name company.
Let’s set up a new company that just makes that contract with your customer so that if your company ever does get sued, it’s a company that you don’t care about, it’s not your brand.
It’s just a piece of paper.
And you can hear this like, Ah. And then he says, Well, then if I do that, I don’t think I need the attorney.
I say, Well, you said that. I didn’t say that you said it. So that’s what I like to look at is what kind of risk are we talking about?
So if I’m gonna invest in kryptos and I’m gonna make 10 million bucks do I need to pay $3 million in tax or four million or wherever that is without getting into some non-profit or an annuity contract and tie money for years. Do I have to do all that? How do I, how do I get out of that risk? And this is what I think we’re going to be talking about, right, Christopher?
Mostly on Spadaro, yes.
So here’s the simple version of it. The reason why you have the liability is because of the way you’re set up and you’re set up that way.
Here, let me get an example.
So I go to a CPA, and I say to the CPA, I need a company, I guess, so I can invest, or, so I can run a business. And he’ll say, OK, do it this way.
So he’s going to do it in a way that makes accounting easy. You can tell me if I’m wrong. Maybe. I think they all do that.
CPAs are not risk managers. Attorneys usually are not risk managers.
So that’s fine. It’ll be functional for that purpose. But if you ever sued, and you’re 100% owner of the company, and you’re sued for personal debt by bite of the cash flow in the company, they’ll reach in and take it.
Because the guy who set it up is not a risk manager.
So to avoid that risk, here’s a very simple way to do it. And I know my audience here is in other countries, so I’m going to share with you how we do it here in the states. This is one word version.
We have a corporate structure here called a limited liability company.
Now, I can do this with other structures. I’m just saying this is a simple way to do it. If I have a limited liability company which I’m the exclusive owner and I get sued for, let’s say, I didn’t pay my credit card bill has nothing to do with my company.
And I lose the creditor can can take the money from my personal bank account and he could take it from my company’s account because I’m the 100% owner.
Here’s how I solve that problem. I add another person as the owner, a cannot be my spouse.
It has to be somebody else. It could be my brother who doesn’t even care about my company. It is. He’ll just say, yeah, you can add my name in there. It will not create a liability for my brother in any way, tax debt, Nothing like that will not pull him into that situation, but what will happen is because there’s two owners with an undivided interest, and it doesn’t even really matter if you have a divided interests.
There’s two owners of a limited liability company, and until the money is disbursed to one of the owners who has the liability like a personal debt, no money can be taken from the company for any one of the members’s debts.
So all I did there was change my property rights, and I changed my liability.
That’s one example.
So, basically, by changing the person’s name on who owns whatever account to this business entity, it unlocked it’s owned by two non married people.
Then that’s all it takes to mitigate that risk. Right, Unsuited, to pay something off, and my name can be on it. It’s just that I no longer have the exclusive right to spend the money or sell the property.
That’s the key thing, and I can do this in every country, every country, there’s always a way to do it.
Some countries don’t recognize LLC’s. So what I can use a partnership, I can use a private company and LTD. It just depends. A trust. I can even use the trust.
OK, so, it’s very interesting on that, but at the end of the day, they’re gonna want to be able to at least control their funds coming back out, into, whether it’s person purchasing, a piece of property, or a business, etcetera.
How does What can they do, What are some simple steps that they can take, through this LLC, to then bring those funds to themselves to go out and do what it was they wanted to do? All right. Do they need to make that, take the next tax exempt purchase, the company’s name?
And they still control it, but it never came to them? OK? The money needs to be moved, but it doesn’t need to be moved in the person’s name. When I say the person, I mean, you are me that the liable party, OK? So the way I do it is I have this company that, let’s say it had some money in crypto, and now it’s worth a lot more in your local dollars currency. And I don’t have a tax liability on it, because the company itself has a different tax treatment, but I still want to spend the money.
Right? Yeah, I can’t just, I can’t just take it out and say, well, it was in the company.
And, just because they can’t see it, I still have gross income if I take the money out. So, how do I avoid that?
So, let’s say I want to buy a car or a house, I can move the money from my company that just got the profits. This is taxable gains profits that my LLC just received from kryptos from selling kryptos to the exchange.
It is not going to be recorded, because, of the way I’m going to show you how to do this. So I can pull that money there, and I can go buy the car.
Now, as long as I do it 1 of 2 ways. I can buy the car in a trust name, or I can buy the car and another company name. I can buy the car in, the same company name, that was holding my crypto proceeds.
As long as I don’t put it in my name.
So, what that looks like is, I’m just moving money from here to there.
It’s almost like somebody would say a 10th or 1031 exchange, but it’s not. I’m just not taking the gain yet, I’m just moving it around.
I didn’t have a gain yet.
It hasn’t reached.
Yeah. There are some steps, are some questions we need to ask the CPA that’s going to help us get that accounting right, to not know raising the eyebrows with the tax.
The folks in any ways that we need to do that? Most of the accounts I talk to will not tell you to do any of this, and they will tell you that I’m wrong.
But, if you get them on the phone with me, and we have like a three minute conversation, they will go, Well, yeah. I guess you could do it that way.
And, in fact, I’ve been doing that way for 30 years. So, I wouldn’t say, rely on your accountant for this. What I would do is use your accountant to do accounting, but don’t ask them, if you’re right.
You have to decide that for yourself. I mean, sure. You can talk with them and see what he thinks.
But most of them don’t like this.
I’ve never had a penalty, and I’ll just tell you. I gave you a little my background.
In the States, I’ve worked with consumers, mostly, and maybe, let’s say 5%, small business owners, that have an annual income of less than $5 million since 19 94, and it’s probably in the range of around 30,000 clients, OK, 30,000, and we’ve done, we’ve done versions of this, in the thousands of examples, thousands of times, we’ve never created a problem.
We’ve never created problem of the tax people, or debt collectors, or the court system even to a point where pushing the envelope. We’ve done some things that we really shouldn’t have done, but it wasn’t illegal, and we still did fine. We got away with it. So none of what I’m explaining to you is illegal. You’re not getting away with something.
We’re just changing the way you’re using property and You know coins are property. So the way to do it is you would move from the the holding of the kryptos into a new holding. So, if I bought a car from my own personal use, make sure that I’m not the owner of the car. I get to use the car. I don’t have to own the car. Or, if I want to own the car. Maybe your insurance company gives you a hard time. If you’re not the owner and maybe you have to pay more something, you can be the owner of the car, and then what you want to do is tell the dealer that selling it to you, to write it up as a loan.
So the money you’re paying for the car, you just tell the dealer that is a loan and you give the dealer the lender information, which can be your company, or it can be a new company.
OK, I remember one of your videos.
I think a basic set was going over that technique as well.
Yeah, that is, that is alone and some people would argue that it’s not arm’s length, but you want to treat it like arms length. I’m not even gonna make that argument, I’m just gonna say, if you, if you treat it as arm’s length, you’re gonna be fine if you’re ever audited and the IRS says, Hey, that’s not really alone.
If you show that you made payments on it, which you should do, and the instrument of the loan has a real interest rate on it, then you should be fine. You won’t have a problem.
Now, let me give you a simple profile. So I got lots of money kryptos, I only need $80,000 a year to live. But I make $10 million in one year, or my company makes $10 million in one year, OK, so the $80,000. Let’s say I’m, I quit my job because now I’m super rich rice. I quit my job and I got my I still have my $80,000 and living expenses. I have to pay my mortgage and stuff like that.
I can take the 80,000 out of my $10 million and report that as my gross income and the rest of it I can re-invest somewhere else.
I can, I can even buy another house, if I want to.
I can buy a brand new house, as long as I structured as a loan or a different owner, just like with the car.
So I can’t get away from I can’t really easily. I can’t do this, but I’m going to say generally.
I cannot easily or justifiably say that I don’t have any income because I’m somebody’s still paying the light bill.
Somebody’s still paying the mortgage rate, somebody’s still paying the rent.
So, as long as I have a personal debt in my name, therefore, if it’s getting paid, I have income.
So just keep that in mind, just because someone else is paying it.
The other thing is, OK, and I know this is, this is going to branch off a little bit, but we can go back. I know you guys want to talk about taxes, but if, if, I would just recommend that you not get excited and pay off your mortgage.
If you go into them, or please go. And a lot of people really especially miserable hate. That, hate the idea of debt, and they’re gonna come to these windfalls, sooner or later, you’re gonna wanna pick up a property. What, what do you mean by this out, right? Can you go to that? please? I’m just going to ask you to control yourself. Control yourself. Don’t pay off large personal debts because you put yourself in a new tax bracket.
All my clients that come to me, OK, when I’m done solving their financial problem, their net worth, their net worth looks worse than when I started with them, but they will become rich or stay rich and not have new liabilities that are associated with becoming rich because I separated their net worth from their state.
So that’s what I suggest, OK, so if you pay your mortgage off early, you probably will, you have a different tax bracket, let’s say.
But check this out, you guys spend all your effort intelligence to find return on capital, and you found it, and you made your return more than you expected, and now you’re going to go backwards and put it on a negative guarantied, negative return on capital.
OK, it is a liability.
But let’s deal with a liability, like responsible, educated investors, OK, let’s do it this way. So if I look at my house, it, there’s no way it cannot be a liability and listen like Donald Trump, right, and I build a castle in the sky and lease out the bottom parts to everybody around the world, OK, that guy is different. But if I just have a regular house, like most people, even a mansion, really nice house.
And it’s a liability. And I let’s say I don’t even have a mortgage.
I still, it’s a liability. It’s not paying me. So all I want to do is take the, let’s call it, every time you have a liability look at it.
In terms of a Balance Sheet, my house has a Balance Sheet.
Most people don’t have this, but you can go make one up yourself, you can just go figure it out, right, Just go to Spreadsheet. So on this balance sheet that is represents your house. What you want to do is add an asset to that.
Balance Sheet.
To a point where you don’t pay off the mortgage, you just set off the debt service on the liability.
So if my mortgage taxes and insurance are, you know, 5000 a month.
I wanted to put an asset on this balance sheet so that my operating costs are zero or close to it.
So how would I do that? I’m not going to get into too much detail on that, but I’m just going to suggest to you, that, within 1 to 3 months of very little effort, you can find an asset that will create cash flow, that you don’t have to work for.
They will do that, that I’m explaining here.
I mean, So, for example, they’ve got, they get this windfall and maybe they purchase a stable coin, OK? It’s going to produce that. recurring income, right? Yes. You can do something to do with that. Yeah, That’s absolutely what I would suggest. Yes. Isolate a thing that would set off the mortgage payment, and that’s that will help you control yourself.
So so I didn’t add an asset to the Balance sheet that has the liability on it until it balances. That is a quick example. Let’s say you and I open this company. All right?
OK, And I We both get the same big crypto windfall and I find this property. I want to go by, but I want to own this in my name.
Or maybe I do another LLC to separate my my live close to that and so I go get this property.
Get purchased and then I take a loan from our company with just enough per month pay it out to cover my mortgage on this other than what you’re saying While you’re borrowing money, OK, you’re buying another house for yourself or an asset.
Let’s say.
Let’s say it’s an asset, OK? So, this property is going to be a foster home.
Yeah, you can do that, right? So your idea of offsetting a liability on a balance sheet is to buy another asset, which is a house, OK, fine. You can do that and it doesn’t matter where you get the mortgage from, you can borrow from anywhere.
So, just to say that again, I can go find this property and purchase it and my other company’s name and get another another party in there and then we take along that company, it takes a long years in my company.
That’ll work.
That’s probably how a lot of you are going to do it, OK, yeah. one other thing I’ll just throw out, Yeah.
So, it’s not like you’re describing, because you can do it, It’s perfectly fine.
A little little more sophisticated, though, is connect with a business broker, someone who has listings, and this helped help him help you figure out a kind of a profile of an asset that you want to get into. And so now you’re talking to somebody who just does Dad, who’s an expert at it, and he can bring you deals all the time. So let’s say, every month, he brings you a deal, and you’re not ready yet, so you can be like, OK, that’s cool, but now not yet, not yet, not yet, and then next year, you’ll be like, OK, I want that.
And he’ll bring you something, that, doesn’t require you to be on-site every day, it might be a car wash in your neighborhood.
Right. So you guys can do that, now, it’s kinda like a hobby.
You can even look for real estate to buy it, you can even buy, you can even buy a tax lien certificate portfolio Why buy wine when he can buy three point five million dollars with a tax lien certificates?
Then, so, and then for those that are watching, maybe not familiar, that’s where somebody fell behind on their taxes, on their property.
Maybe they inherited as an estate, and forgot to pick up that tax burden, and so the county or the state has now place to lead on that property. They cannot sell it, so they make their taxes fall.
You can purchase that lien from the county or state, to, which at a severe discount to the property’s value. It could be a few thousand dollars for a very large property.
But because you bought the paper, you bought that leen.
the government’s happy, because they got their taxes. And now that property is yours for very, very little, and neat around a rented out.
There’s that cash flowing asset as well, which I’m not a good explanation. The tax lien Certificates, it’s just paper. You don’t get the property unless you have to foreclose most of the time. You don’t foreclose. And that’s not really the purpose. The purpose is to manage cash flow to the tax lien certificate. It does have some liquidity, not as much as gold. And it does have some operating costs. Because you do have to correspond with the homeowner. But there are services It’ll, You can just plug them in and you won’t even miss it. It’s just easy to do. The purpose of me doing something like that would be answering the question, oh, my gosh, what do I do with $3.5 million? I can just stuff it over here. I don’t have to put it into gold in a vault somewhere.
I could put it into something that’s generating cash flow, and then I can also, I can take my tax lien certificate portfolio because it’s real estate and it’s guaranteed income. OK, it’s guaranteed by law, I can borrow against it.
I can borrow against it and buy another assay.
So there’s some, There’s a lot of things we can talk about, but yeah, The very beginning part is you just change the way you own the property and manage it, and you can avoid the initial hit on your principal.
So, again, the way we own that company is two people not married.
Yes, Correct. That’s then And then how we and how we handled the principal was exactly how.
Well, OK, Let’s say you do have You want to account for some of it. I have a couple of videos on how to do this.
You want to calculate your cost basis in some cases, because you’re gonna take somebody out, maybe gonna go on vacation, so that’s taxable unless you can figure out how it’s not. Or by, you know, go look at some real estate while you’re on that. Right? Off part of the trip. You can do that, OK. So there’s, there’s your cost basis. And then what’s your money you take out? But you’re going to take the money out when it’s worth a lot more, so. There’s an algebraic little function I described. I hope I did it well enough on a little short six minute video on my channel. I can, I can show you guys what that is, and that tells you how to back out that that portion of the of the principal, the figure cost basis.
So you can subtract that out. So, anyways, but yeah, you could, that’s how you could do it. mm.
So much for trying to get to so much for taxes. Right, everything right now, that’s the basic thing.
So, so, maybe we can open up the chat room for folks to type in questions, if they have some questions on what we’ve covered so far, or maybe something else that we didn’t bring up?
That’d be great.
Yeah, I know a couple of comments. Got it. I got a question.
Overall, hey, I bought crypto just to get started. A lot of them join our community.
So somebody could walk them through how they can own their own keys and not leave their funds on an exchange, maybe get hacked, but they bought it on their own name.
They’re here, and all this gone, oh, my gosh, OK, So, Can’t do I have to give my crypto up, put it in this company? How do I do that so that I don’t wind up with this massive capital gains tax when when these things go to the moon?
I asked a move those into held in their name to accompany, OK? You could today, continue investing in crypto.
And bye, bye, Bye all you want and not have a tax liability.
And that includes trading from coin to coin, and that even includes, if you get a tax report, now I’m going to talk about the US. Because I can tell you for sure, this is the results I’ve gotten. I believe you can do this in other countries. But so in the United States, people have been trading on the, let’s say, Coinbase for example And sometimes their trades are frequent enough, they’ve done so much in a year or such high value in dollars that they get a 1099.
This is a report that coin but Coinbase says Sends out to the account holder you and a copy to the Internal Revenue Service, OK.
Are tax people All right.
It says you have you have there’s so much in taxable whatever income or gains.
So the 1099 shows the dollar value of all the coins that were traded back and forth but no coins were sold.
Sometimes they are and sometimes not all they are, right.
But a lot of cases I have most of the coins the client did not sell.
I can do it either way when you sell you need coming back into seok currency.
Exchange yeah, even if you went let’s say sold bitcoin and got dollars into Coinbase and then you went and bought litecoin from those dollars That is reportable reportable and it could be taxable.
But here’s how you fix it.
Because of the way Coinbase owns the coins, we can ask the IRS for a legal determination letter and show that even though the dollar amount on the 1099 is whatever it was.
Like, for example, I had this one, gentlemen, I was talking to, he had $40,000 on Coinbase and he got 1994 $900,000. Because he’s trading interests. Oh my gosh, Yeah. So he was like having a heart attack and I said, Well, hold on. Let’s just see what the IRS says about that.
So, there is actually a process that the iris tells you how to do this, OK? They have a book that tells you how to do this. And, I’ve been doing it like this for like almost 20 years, so. It’s not, this is nothing new for me. So, I said, hey, let’s just ask them. Let’s just ask them for making it. Ask them for determination of legal determination on this situation where you get a 1099 for all these dollars, and you didn’t get the dollars.
Or you only got a teeny amount of those dollars, right?
So I sent in my request and sure enough it came back and Iris says, Oh, yeah, that’s fine. Just ignore the 1099 in, so many where they didn’t say that, but they in so many words it said they’re very cryptic.
They said, here’s what I told them. I’m going I’m going to exclude this 10 99 because it’s erroneous. I’m going to exclude it from my 10 40.
Here’s a copy of my 10 40 and the IRS wrote a letter back and said correct. Please take no further action.
That’s how they. So they’re happy to take your money if you mess up reporting. Or if you’re Yeah, oh, yeah. Oh, my god. Yeah. And here’s the thing. If this is the thing that makes me sick, is if at that transaction, if he reported the 1099, he’d be liable for it.
you can’t get around it. And here’s why.
Because you’re reporting under under penalties of perjury, and this is why I like to describe it, when you file a tax return under penalties of perjury, you this is the law.
Like, the 10 40 is the law, This is your legal duty.
Once you’ve filed the return, that’s the way it’s treated. And the unless you want to amend it? And if you don’t tell people to amend those things, if they, If they do, am, I just say like just just go forward?
Because if you amend it, I don’t know maybe it’ll create all kinds of an audit or something like that. I don’t know. I’ve never told someone to amend it.
But, Yeah, so we can actually get a determination so don’t be concerned about structuring things in a certain type of company and You can just own the coins in your name or manage them in your name and Just don’t sell them for dollars or your local currency in your name.
That’s it.
If as long as you don’t do that, you’re gonna be fine now when you wanna go take profits. This is why I really recommend have a vehicle by which you can do that. So here’s an example. I’ll give an example If I don’t have a company. I have a million dollars in Kryptos Maybe it’s more or whatever.
And it’s still in my name, and I went and I put it all it, took it out all my coins. And I put it in Bitcoin because I’m going to take my profits and move on I am to I’m done with crypto is I’m going into something else So I go all into bitcoin.
I’ve got one million dollars with a Bitcoin And I want to move it to let’s say real estate, I want to invest in a apartment complex or something.
OK, so so I’m going to open escrow.
I’m going to take my Bitcoin wallet, and I’m going to put it in escrow I’m not gonna sell it for dollars.
I’m gonna give my escrow Agent Bitcoin, that’s going to go in escrow.
Now escrow as a trust, qualified escrow as it trusts, you guys can look this up, qualified escrow.
That just means that it’s not your Uncle Bob holding your money. OK, it means it’s a third party, OK, so I put the Bitcoin and Qualified escrow now. If my escrow agent is smart He or she is going to already Understand how to liquidate the coins for clients to do this type of service because this is coming.
So if any of you out there want to see this you’re going to be the first N, OK? Now I can do this I’ve already set this up last year, but anyway, so the escrow agent can then sell the Bitcoin for dollars because let’s assume the seller wants dollars.
We’re not going to talk to them about Bitcoin, right, so, in escrow my agent sells for dollars. Now I’ve got dollars in escrow, now I’ve got my contract now, I’ve got my property, I’m buying so here comes the closing.
I’m going to take the title, to the to the property.
So all along this way, I’ve moved Bitcoin into dollars, I’ve never heard of tax liability nor has anyone, not even the escrow agent, OK. So now I’m going to spend it.
It’s going to complete the transaction it’s going to reach its destination and I’m going to have the apartment complex and the seller is going to have his dollars and I don’t care what happens to him.
The question is: if I take that apartment complex and put it my name and leave it, like that, I am, at that point, going to have a tax liability, whatever to the million dollars, Whatever it was.
OK, because I did get a gain. It’s I did get something, and there it is.
In order to avoid that, I would simply buy the apartment complex in the name of a company, so all I’ve done then is just fund another investment. It’s moving money around myself.
OK, that’s one way to, That’s the, that’s the key thing, is not, Oh, nothing.
Well, everything, right? Yeah, I mean, I’ve done this for 30 years more than that, and money always moves around me. I don’t, I don’t need money for anything, I really don’t.
So, you can just use it that way.
You can, you can do it that, or you can do it with alone.
There’s a couple of ways to structure with a loan to, before we go into the loan, can we come back to the front?
In this stage, folks like us know and love crypto. But a lot of escrow agents, that’s just kinda realms beyond where they are yet.
So, how would we take kryptos and RNA, turn it into dollars and get those to that escrow agent without incurring a tax liability in that process, assuming that the escrow agent cannot, doesn’t have the ability to convert bitcoin dollars? Most, won’t, Yeah, maybe next year they might start figuring this out. Right? The way I set up clients so that they don’t have to rely on the escrow agent to do that.
I set them up so that when you have my my LLC type structure, whatever I do, it’s already covered so you can sell for dollars in the LLC and move it to your asset and you can move it into escrow too.
You could do if it’s in the LLC. Sure, yet.
But soon the crypto’s are still in their own name, and they haven’t gone through the process to KYC their LLC on an exchange, and then, and then move the dollars from the exchange into that LLC. That LLC doesn’t exist yet, but they’re about to buy this property and that’s right for that. That future purchase would be the first thing in the LLC up. There a way they can convert their Bitcoin dollars through that escrow agent?
Yes, if the OK, so you want to open escrow with an agent that you want to use. Let’s just say wherever you are, let’s say in the States.
Right, and that agent can’t can’t stage conversion himself. He won’t do it today. Chances are so right, like I can do that. I’m just saying I can do that. I don’t know anyone else who can do that yet I did have one agent called me. She’s all excited. She goes, Wow, yeah, and I said you know you could do this. I don’t mind competition There’s plenty market out there.
She goes, no, I just want to know who to call So my partner and I set this up, we have an exchange.
It’s his exchange broker, the deals. They charge like 15% so just know there’s a there’s a premium there.
Some people are more than happy to do that. If it’s a large amount, now we can liquidate seven and half million dollars with the coins per day per client.
So just know we can do quite a bit.
I would encourage you to use your structure, you know, use a company and not have to incur that cost.
Yeah, so, you don’t need it now. I did talk to one gentlemen and he was so eager to do a thing, I don’t know what it was, he was in a rush. And I said, Look, if you just wait like a couple of weeks, you can set up the structure. He was like, No, I gotta do it now. So I said, OK, Well, my partner up.
You know, and we said that but yeah, yeah, OK, so subscribe Susie that subscribe into your privacy fight to the Premier Base site Or how would they would be the best way for them to get that content from you to have you set that up for them? Maybe not two to 15%, but but still right?
the best ways to connect with me on Monday said I’m an ace of coins on Telegram, so ace of coins is an announcement form.
If you subscribe to that I announced things I’m also on telegram under at JJ Singleton. So that’s a good way to connect with me.
I’m opening a helpdesk on ace of queens dot com There’s a help desk so that way you can call or chat or do a telegram prompt because if you’re out of the country, You can contact and I’m having people set this up.
It’ll be a separate company, and they will be able to answer your questions now, These people that are running this are my clients, many of which, and they, I would consider them pretty well versed on what I do there. I would almost say they’re experts, OK. So you’re gonna get questions answered right away with people that answered the phone or telegram or whatever. And if I need to get on something, They’ll get me on the phone, or have me call you back.
So that’s coming in the next month Excellent, so that’s each of coins dot com and then on Telegram they lookup J X J. J Singleton. And you see there was a third is that … Yeah, I have an e-mail address that’s. It’s singleton press at proton mail dot com.
It’s singleton trust that proton mail dot com.
That may take awhile to get, get me. Because unless I see it, when I first look at the very top of my e-mail, I’m like thousands behind. So I’m trying to do the best I can. But Telegram and my helpdesk I have to do the helpdesk.
So you’ll be fine that way. And sometimes you get me right away and sometimes it takes a day or two.
So in any case, I know, I think Edith was, she took a couple of weeks I think it was, So, that’s all my fault. That happens. Anyway, I think book in your, in the fall, through the consultation on the calendar, you maybe into the fall, which is that’s the kind of problem we want to have of getting your value in front of folks and then trying to figure out how to bring some of this into the port.
So, as far as transfer their crypto.
So let’s say we aren’t going to go through escrow to purchase a property, but someone wants to take their Kryptos purchased in their own name and Glenn funded company for this, and then, you know, maybe it’s a Wyoming LLC or affordable. There’s, there’s no state income tax.
So, the stable rewards. You know, there’s no income on that, right? Is there anything they need to do to retitle those besides KYC, their LLC?
No, company, on a sticky note. Just set up your company. Open your accounts. You don’t even need to be concerned about whether or not there’s a state income tax, because this company has a pass through. Until you treat it as if it’s not. So, the tax liability and the filing obligation comes when you file.
This is where, I’m gonna say that again, because lot of people go, Oh, wait a minute. What did you just say, the obligation to file a tax return for an LLC, like the way we’re describing it, comes from filing the return.
And once you file the return, then the Irish expects a certain tax treatment, unless you do a conversion or dissolve the company from then on.
So the companies I set up, my clients don’t file returns for those. They account for any taxes later on down the road, if, if that’s needed.
So, because there is no taxable action taken inside the LLC, there’s no requirement to file.
It’s not that you’re evading taxes, because you didn’t file. You’re not filing, because you’re following the IRS tax code.
You’ve taken no tax reportable action and that’s the key thing I think is nothing was tax reportable, therefore, there is no requirements file.
And then what are the what are 1 or 2 things that are maybe common?
Things to avoid to make sure they don’t accidentally do something they should have reported, but they’re already in this habit, if not filed.
As long as you don’t file for it, you’re gonna be fine. What I would caution you on is: don’t try to get tax deductions from it because it doesn’t file returns. So it’s not gonna have a tax deduction, it’s just not going to have a tax. That’s way better, I think, don’t try to do some funny business where you’re trying to get zero taxes or something, I mean, you’re gonna have some taxes on your income.
You don’t need a million dollars to live though.
You can live like a million dollars a year, You don’t need to show that on paper. It can just be done structured a certain way.
And I would also caution you, here’s where you get into trouble.
If you focus your efforts to simply, for one purpose, to avoid taxes, you’re probably not going to do it. And you’re probably gonna break the law, You probably do something wrong.
So, as long as you’re OK with, you know, paying tax on your income that pay all your bills and you’re not going to pay tax on that 10 million, $100 million principle and you’re gonna use the strategies, you’re gonna roll the money over and re-invest, and you’re going to be just fine.
OK, so that’s a really key thing, I think where it ties together.
When you personally don’t own anything your company does, you have to declare any income you receive, maybe take a little bit outfit, our bill. Buy groceries.
From the company, you report that tax on yours. Does your company and to report that taxable losses and expense, or no, because it’s not working?
It’s just a loss. Yeah, you’re just not, You’re not in that system, It’s not doing that. You want to use it as a pass through, that’s how you have to do it.
So, yeah, I can’t, you can’t do. Elizabeth had a question.
I think you’ve mentioned, I know you’ve mentioned a lot of your videos, because I’ve up, Instead of trying to share that, with this community, terms of when you open up a company, what’s, what’s the thing that you say to put for the business purpose? Has got some really good pieces on that, as well, I’d just like to create, um, because of the way I’m doing it, I get a lot of friction from the bankers. They don’t like to see someone actually avoiding liability. They always creating liability for people. So, I, my backstory is a real estate because I can make a real estate, really boring so for a new person doing this, I just said when I do like I’ve been Pennsylvania, Pennsylvania, I can’t just say the purpose of this company is for all legal purposes. I could do that in almost every state. But in Pennsylvania, they’re going to say: Now we want to know more.
So, my response is, no, I don’t have to tell you anything. But, if I say that, they won’t register the company, right?
Right, so, instead, I say, This company is may also invest in real estate, and then I give something like, what kind of real estate I go? It may invest in real estate in terms of commercial real estate, or staging, or property management.
And that’s it, and maybe I’m not going to do that. Maybe I’m going to own a website that sells socks.
I don’t care.
They don’t care. They just want me to answer the question. And so when I go to the bank, it serves two purposes. Now I go to the bank and the bank does the same thing, and then on the articles that are filed with the State. It says that, so when my client goes to the bank and says what I tell him, the bank says, Hey, What do you do? And you know what the company what’s it for? He’s going to say?
Oh, well my my uncle said this.
It’s a great idea to invest in real estate, and I’m going to take his word for it He said, I need to set up this company So that kills the conversation, because You’re not saying anything interesting. You look like a novice, right?
I’m gonna get my account open And It’s a standard thing. They love real estate investors.
If I if you said something like, I’m running a cash based, bending machine operation to them. They’re like, boop, boop, boop! Now let’s ask them more questions. Oh, lots of cash. For all we know he’s dealing with cocaine, you know we have to know we’re not going to do that. Let’s just talk about real estate and be boring, and maybe common like everybody else.
Right. Just gives it a comfort level that you’re not gonna do anything that isn’t legal.
You’ve already declared in your operating agreements, your articles that it’s gonna be legal. And there you go. Fetch. And we had a question come and say, what about non crypto money inflow? Like when one of our venture capital pays out, so, and we’re looking at where we think from the numbers we’ve seen coming back and wanting to 100 X, now these are just going to change people’s lives, they don’t want to turn around and hand over 30 or 40% to state federal taxes.
Yes, OK?
You can manage any cash flow this way, you can manage any Asad this way. You can manage an apartment complex, a rental, real estate portfolio.
You can manage securities this way. You can manage stocks this way.
I’ve been doing it since the nineties, and it’s way kryptos or just the latest thing.
The next thing, this is nothing new, guys, That I didn’t invent this last week, this I’ve been doing since like 1995 probably mm and yeah, so you can, you can run any cash flow this way. In fact, I was just on the phone. That’s why I was late. I was just talking to a gentleman who was dealing with the problems related to the fake pandemic, OK. And this state in the County is harassing his business. And they’re trying to impose these fines on him.
So I’m setting them up with a company, just like I’m describing to you guys, But in his case, this company will manage his company’s cash flow. He has to retail locations in like Near Tampa, Florida.
And this new company I’m setting up for him, a limited liability company is going to manage the cash flow and they cannot impose the fines on his company.
They will not be able to touch any of his cashflow because I isolate it in a way where he no longer has the rights over the money.
So it doesn’t matter what the fines are, he can ignore them, OK? So, Company A are these retail sites. Company A is the one that builds the customers, The customers pay.
Company A then turns around and gives all that cash flow company B minus what it needs for payroll and an insurance and power bills, right? How does that go? The company he has now is filing a tax return. Every or maybe it’s a C corp. I don’t know. Exactly. OK, and I don’t care because his accounting will not change. All, I’m doing is taking the money That comes from the customer and putting it in a company.
That’s not his core business, It’s not as brand payment. It’s a payment processor. It’s a holding company just like PayPal.
OK, so the PayPal money goes to this new company. I just set it for him.
The merchant account goes there. My chiropractors office insurance billing goes to the separate company, OK? So now, the separate company, let’s say it’s a chiropractor’s office and he’s making $2 million.
And he only needs a half million dollars. Well, the half million dollars is going to get paid to his company and he’s gonna pay tax on that ever going to be happy, but the 1.5 is going to sit out here untaxed. Waiting for something to be done with it.
He can so disease, as you set up is billing, then where Company B cashflow Company, Company B is, is the on the receiving end of the payment processor. So you see as card swipes customer on, company A’s property.
The money from the customer’s card goes directly to Company B: Yes.
Then he can choose to do what he wants, and the reason why I came up with this back in the nineties is because my first clients were a group of, they didn’t know each other. There’s like, over a series of time, I just had all of a sudden, all these IRS cases, and I was, I worked with a partner and we were sharing cases and he was assigning me, and he was training me and all this. So it was IRS and the IRS is doing it. What’s called a tilt take.
Until take is when you just levy everything that’s coming in from and you don’t get any money, you’re just starved out. You can’t pay your people you write your products. Yeah. Yeah. Yeah, They’re done. I mean, you’re like, you can even do bankruptcy to recover, so don’t even get around that. So, what I would do is it would take me like an hour. I would set up a new company rewrite everything, and the way we do it with a merchant processor is we send them a new W nine A W nine is a certification that the EIN We got the new company name, and new EIN is, correct.
That’s all that is, So we reroute the money to the new company and cut the IRS off. We literally take it away.
Now the iris can take zero And that brings them to the table. They actually call up and send a letter and say, Hey can we work out something?
You know, and then I, then, I come back like a month later, and I say, Yeah, We’re poor.
I can’t pay, know, and I know they can see everything I just did. That’s why I learned how this works. OK, I can see, they can see everything I just did, and they’re gonna agree with me that they can’t pay, that I can’t pay, and they will make a payment arrangement or something.
So the radar for it there. Yeah, so doing those types of cases. And I did this for, like, two decades, before we started getting the kryptos. And I didn’t really, even dawn on me to run 2015, that this sort of method can be used for wealth planning.
And so that’s what I’ve been doing for, like, the last 10 years.
What if someone receives an inheritance or a gift of a windfall and they want to put that into a property?
How do they how do they take that?
tax free gift babies, an insurance payment and then turn around and do something that they benefit from or maybe their trust benefits from without having to pay taxes when they liquidate that stock, for example?
Maybe they only already own a property, they’re looking to develop it, prove that whatever they’re doing, they’ve got this insurance policy, your gift or whatnot.
How did they get that over there?
OK, make sure the, the beneficiary of whatever it is, the will.
The whoever inherited inherited the money makes sure that that is a pass through, like I’m describing.
If your name is on, your parents, will your dads will let us say, you can’t get around it, if there’s an inheritance tax, if there is, right?
So, what I just recommend is, make sure that you’re not, your name doesn’t appear and make sure it’s the thing you want to use.
The vehicle, the LLC, for example, or the trust, If it’s a gift, same thing. Now, sometimes, we can’t get around it sometimes. I mean, it’s a gift. Chances are the gift. The gift, or it’s gonna pay the tax, I guess, is how they work it.
And so you deal with that. But, yeah, you want to try to avoid getting that tax situation first. Who can’t receive the money, and then do something, and avoid the tax. That’s, like, going back in time. They can’t go back in time to tax you, and then you can’t go back in time to get out of the tax.
So even if they took that gives, Thanks.
I’m gonna go to company and then can they write off that, what the received and a gift its value. Can they write that off by plugging that into the company?
Or is that nobody, if the company files are returned? Yes.
So if your LLC that doesn’t file, no, it’s either one or the other, and actually you’re gonna, you’re gonna come out way ahead anyways if it’s not filing.
Yeah, that’s the simple version.
No, I can’t, It’s not as different. You’re not, you’re not going to do a 1099 with a company that doesn’t file. You’re not going to do it. You’re not going to issue a K one, You’re not going to get a tax benefit. And those, in that sense, you’re not gonna get a deduction.
It’s just, so, thanks for that. Thanks for the unexpected gift. I guess I’ll pay the taxes.
I wasn’t expecting it anyway, So, pay the taxes, be done, right, and go, do we want to do that? Yeah. I do that, too. I mean, I have cash flow. That is not taxed and it’s legally not taxed. But, when I donate money somewhere, that’s me. That’s literally me. I’m not getting a benefit for that, and I want to donate the money, you know, so yeah. You just have to deal with that.
OK, we’ve got Lynn asking the question, if you could address an IRA LLC. That setup, as a solo, as a single party LLC, because that going to be a problem. Everyone knew and draw money spending. It’s not a problem at all, but it is separate. Do not mix it with what I’m explaining here, so your LLC, that’s the trust custodian for your IRA or whatever Your self directed follow, Those rules, The thing that makes that different from what I’m explaining here, is it in the Operating Agreement, which, you have to disclose to the organization and the IRS. If they ask you mind, you don’t, but there’s, there, they add two more provisions, and at some technical language about the tax system, that is added into the operating agreement.
And that is a taxpayer. It has to do whatever the IRS says, whatever the IRA trust agreement is.
So, that is a separate creature from what we are talking about.
So, the other thing there, to point out, is, there’s not going to be any liability.
Its job is to be the buffer between you and your IRA, that has a tax reporting liability to the IRS, just to match up and make sure when it distributes money to you.
It has to report that and then the IRS is expecting to see forwarding that is taxable income or, or as tax reportable.
income, just, yeah, you can report and disclose what’s required for all the self directed IRA type structures.
So, I don’t, I don’t know what that is. I, like, I talked to one, the woman a couple of years ago, she had, she used a self directed IRA, and she bought Kryptos with it, Which is fine. But she did it the wrong way, apparently. And luckily, she got she, her account, and told her, I wouldn’t have known this, because I don’t keep track that stuff, but the accountant told her that she needed to put it, put it back, and then do it. Again, the right way to be having considered as part of the trust, the IRA, Roth IRA is a trust.
So, yeah, you can mess those up. So be careful.
The thing I don’t like about them I don’t want to disparage it because they are good tools, it’s just that I’m not gonna follow a set of rules for one purpose to avoid attacks for a long period of time because I’d rather be liable for the tax and have the freedom to invest in assets and bet on my ability to make way more money than who cares about saving money from attacks, right?
That’s how I think, anyways.
Right? We’re like, It was interesting, talk with some clients and members yesterday, where we’re looking at portfolio is going, Oh, yeah, Miss Miss cashed out on the 25 X but I’m still sitting on six X. And were bummed about that. Yeah, really. When we see people, I gotta be 20% in taxes.
It’s a big dollar figure, but because they don’t know any better, Sam, 6%, yeah, let’s not step over over dollars to pickup times. That’s right. That’s what, don’t catch yourself doing that. Yeah, yeah. Always look for the, the return on capital K, don’t make decisions like, my dentist, you know, you go to the dentist and he steps your mouth with the stuff. And they start to ask you, So, what do you do? Yeah. So, we had that conversation, and he was complaining about, as account. And he didn’t know what I was, I did. You know, I started, I gave him a couple of answers. But he’s, like, my count says, I had to buy this parcel of land to get a tax break. And then there’s other insane stuff.
And I said, well, ask yourself, who’s giving you that information?
It’s an accountant.
Not, not that he’s not a smart guy, but he’s a professional.
And he’s not an investor, and he’s actually not a business owner. He’s a professional.
And as a dentist, your both your professional, but in your case, like this guy was running his own operation. So he’s also the owner or the business owner. But he’s He’s also trying to be an investor. He’s thinking is being investor, but really, he’s trying to get a tax break on some silliness. And I said, Consider who’s telling you the information first. Is he like, you is seen investors? Has he taken risks? Has he lost money before? This guy probably hasn’t lost a million dollars at Stop, trying to trying to make money.
So I said, find somebody who is like you, and who’s invested money, and found a way to do it, and make your decision based upon return on capital, or net present value of your cash, not a tax rate, tax rate, or an interest rate on the loan, that’s another problem people run into. They’re trying to shop for interest rates on loans. When I just want the dang asset, I don’t care what the interest rate is, really. Unless it’s 30%, you know, I want it because I can use an asset to offset that. There’s all kinds of ways to offset that.
Pick up something else. Go get another stable coin, pay the bill are buying. Complex that to give you the cash flow, that office. Yes, that yeah. Yeah, So make your decisions based on return on capital, and then also make your decision. I mean, you could offset like you’re saying in a high interest rate, but then you look foolish for paying a high interest rate, and you can offset it because Look at it like this.
Let’s say you’re doing it by yourself by yourself, and then you want to take on Another investor. Let’s say someone comes in and says, Man, you look like you’re doing pretty good. Can I look at your books? Could I could I put in two million bucks on what you’re doing? Can I get it on the party?
You’d be like, OK, fine. Because if you get in with your two million, I have some liquidity and I can do something else, right? So, he says, let me see your books, right? So, you show him and he sees that you did some foolish things.
And he’s gonna be hesitant, like, why do you do this, you know?
So, always keep in mind you want to do the right thing for making money but also because it just makes you look respectable.
Absolutely. Julie, yes, we’ll make sure we CCC gets its reporting. Junji, if I can give you my address, we can get that sent over, and then, I can make sure the leadership forgot it to put on our website. That would be great.
We had a question come in, Can you rename your IRA to an LLC, and instead it all tax free? I don’t think rename, and an IRA is going to change the three you got it. Set it up as a self directed.
And then it’s either going to be taxable as a traditional, or after taxes or Roth, but, uh, that, yeah, I have, I have strategies on that. I mean, I don’t know how much more time you guys got, but on an IRA, you’re tying up your money for a tax benefit.
And yeah, with the self directed, that’s kinda nice. You can get into stuff, but you’re still under that umbrella. An IRA is a trust, no matter what you call it. And that trust is under subject to certain criteria, You gotta follow. Those are you’ll get huge penalties.
So work with someone who really understands that I’ve done two of those. I don’t like to do them. I don’t want to be responsible for that.
So it’s a different creature.
If you want to get out from under it, take your licks OK. Pay a penalty, you pay your tax, and go, so maybe your type of person that for you, You’ll just make that money up in three months.
So, I’m gonna look at it that way.
Great possibility. So, question is coming through. We mentioned some of the venture capital deals, but the contracts, you know, hey we were just getting into this.
But some amount of money from my name, contracts in my name. If it comes back as a windfall, can I do it quit playing on that contract? You can read retitled into that into a company. Yes, you can, I just did one the other day, and it was for stock. In fact, I’ve done several already, that people had stock, and they, they’re suddenly see my strategies. And I’m like, Oh, that looks cool, I could do that. So, they work it out. And so what? you can do this, I’m gonna, I’m gonna tell you guys something, I’m gonna give you a phrase.
And you’re gonna get the video.
But I think, in the meantime, you’re gonna want to check this phrase out, OK, if I have stock, here’s a hypothetical, I have stock, and I want to sell it, and I’m gonna take the money and go somewhere else, but I really don’t want the capital gains on it.
So, what I need to do, is, I want to change the ownership of the stock without selling it first.
Now, this is a bit of a headache, but you can do it, you go to your stockbroker and you switch the account, you’re changing the title on the account.
Somebody who’s an LLC, us as a pass through.
So, it’s in my name, roll it over to an LLC. That’s the wrong language, but I’m going to move it over to an LLC without selling it.
So make sure that they understand that you’re going to re-register it already, right? Reregistered, right, OK. Then you can sell it and then the new owner will get a 1099.
Now that’s one example. Another one is, let’s say I own stock in a private company.
It’s private equity, and it’s time for a dividend or I want to sell that stock.
Or my partner wants to buy me out and I don’t want the capital gains.
So here’s what you have to do, just like in my first example, where you get the stock brokerage switchover, in this other example, I’m going to do a stock transfer agreement.
OK, it’s a contract where I’m going to transfer my stock, my personal holdings of stock into the LLC, for example.
That is not a sale, that is not a disposition of assets, Here’s what it is.
It’s A It’s a conveyance of property for estate planning purposes.
If I convey property that’s otherwise taxable ancell for estate planning purposes, and I can get a different track tax treatment by doing that.
The transfer itself is not taxable because the beneficial interest remained the same.
So I was the owner before, I still care about it after, even though the titles in a different name. I’m still effectively the owner after. So if I still care about the asset after the transaction or the transfer, then it’s the beneficial interest are the same and it’s not a disposition and it’s not reportable or taxable.
That’s a fascinating idea, so you still control it, you no longer own it and that’s because it legitimately is for estate planning.
So, if we maybe go back to a previous example where that gift showed up.
That’s kind of stocks of stocks.
And let’s say they say there’s a property that’s on antitrust.
and that’s what we want to get developed. Could we use that? That technique you just described?
Could you change that into the trust’s ownership, for estate planning purposes? Assuming that was the purpose of the trust.
When it gets processed …, but I’m gonna, I’m just gonna say, be cautious on those. Yeah. I get, There were, there was one last month that I could not do. Because it has to be a legitimate estate planning function. You can’t just say it’s a state planning, but it’s not, So No, no, no, no. Yeah, so, I don’t know.
It doesn’t sound like it is, I’d have to look more at it, but I just, generally, if I go from a business or a trust to another business or a trust, that is actually may not be estate planning.
Right? Something else, though, it is something else, but I’m not gonna, I’m not gonna get into too far into that, so be careful on this, So it has to be considered part of your state. So, if you personally care about the money and then you still personally care about it, you’re fine. It’s like, I can do this for a house, if I own the house first.
If I own the house first, I can convey it to an LLC.
California’s great for this California’s enormous tax on the value of the house, they tax you and on the filing fee for the quitclaim deed.
So, if I can pay the property just before the sale, if I sign the sales contract and I put it in the LLC name and then it sells and my LLC gets the money, there is no tax on it. There is no capital gains tax on it. It’s completely deferred.
Fascinating. And into everybody, get on his calendar to learn how to do that. To prove this, if you guys say, this guy’s nuts. Here’s how you prove that I’m not nuts, At least for this. You can go to any county in the State of California, in Florida to, and you can ask them now some counties will be reluctant to give this to you.
It’s on the Internet, too. but there’s a form.
It’s and it’s it’s a checkbox form that shows that that conveyance is exempt from that documentary stamp tax because the conveyance was done for estate planning purposes.
There’s actually a tax code that identifies this.
And that so that was a checkbox code. You just go to that or e-mail them and say, hey, mister Miske clerks and need a forum called will deal with that. One’s called a Californian. Yeah, I can look it up. It’s in one of my videos.
And by the way, the video content I have on privacy fight dot IO, I go into all the little details about how to do this. I show you the form and I walk you through it.
So, I’ve done, I think two videos on that California’s quitclaim deed, how to avoid the capital gains tax.
Let me give you a quick plug on that, that my firm bought this from him, and it’s amazing content. It’s going to take just a couple of days to sit down and really nugget through it. Make sure you take some notes along with it. Oh, and by the way, it gives you a really nice discount if you pay in crypto.
Thanks. Thank you. Thank you. Yeah, yeah, you mentioned that available to us.
That, yeah, this, Hey, this is saving me, too, because I’d love to talk to you guys, but I can’t do it all the time. You know, one-on-one, this stock transfer agreement, let me just give an example, OK.
I didn’t want a few years ago for a client and he just called me up. He was a client from a long time ago and he had an attorney working with money on some other deal and his partner was buying them out of the company. This is a real deal, 50%, right.
So, it was over a million dollar sale of stock and his attorney swore up and down there is no way, Mike that you can avoid the capital gains tax on this. So, finally, he’s got he gave up and just called me and he goes, John, what do you think?
I said, Well, let me see. Let us see your corporate charter. I’m not going to tell you what you can do. Let me see what your corporate says. Let me see what you guys agree to. So he sends me the thing and I get them on the phone, and I’m reading through and it’s a page and a half of rules about how you can and can’t move stock around.
And the last line says if the conveyance that the stock is for state planning purposes, disregard the foregoing now I knew that it was in there. I just wanted to show him. So I showed him the piece of paper.
And he goes, Wow, OK, so what does that mean?
I said, well, you’re Tony said, there’s a capital gains tax, and he’s right, if you sell it now, but as you convey the right to own the stock, if you’re conveying the ownership to a new company like you we’ve already set up before. Let’s set up a new one.
Set up a new company, conveyance to the LLC, If we put that in the stock transfer agreement, that, that’s the purpose for estate planning, I wrote that up. I said, Give this to your attorney and see what he says, So the attorney shoot them an e-mail back the next day and says, Oh, great, this will work, thanks.
After all of that drama.
And notice that last sentence from the right, and again, this, this underscores. The way I tell everyone if you change your property rights and the way you’re managing property, you can avoid whatever liability mostly mostly.
It’s, like, hold on to send all the time. You say mine, more slips through your fingers. The tax code lets you pay everything they want to pay, you, say, it never really ensures Anyways, yeah, I never really is. You’re always using it. Yeah.
Here’s a great question, so, you know, your calendars get filled up until about October, the end of extensions for filing kryptos, hold personal name, tax returns, and personal name. Do I check yes or no for? OK, good, great question. I have a couple of videos on this, but I’ll give you guys the punchline.
If you took dollars and bought cryptographic currency on your 10 40, you would say no.
Did you? Or did you not?
Let me explain. So, if you took, I’m gonna say it, again. If you took dollars and bought cryptographic coins virtual currency from anywhere.
On your 10, 40, if it asks you, Did you purchase coins? Your answer is no.
Now, where do I get this information from I’m not then I’ll give the other half, and I got all hanging onto our scene.
I got this from the IRS, because, you know, people pay me for information, so I have to go get it from the source.
So here’s what the IRS says.
If you took cryptographic currency, and you bought cryptographic currency from somebody else besides yourself, someone who owned private keys, and you did not, you would say yes.
On the 10 40 as to having purchased coins, that’s when you say if I go. So if I go to an over the counter, and do a crypto to crypto swap, that’s a yes.
But if I bought it from Coinbase, and I haven’t done anything else with it, that’s a no that’s a no if you, if you use dollars to buy it.
Now it gets a little more complex and I have to give you guys a couple of videos here, but because we can slow down and do this.
But on Coinbase, you never own the coins.
Anyways, not only that, the coins are held in trust, the relationship that the account holder at Coinbase and any exchange by the way. Correct me if I’m wrong. I’ve not seen anything different. Coinbase owns the private keys that makes Coinbase the owner. In fact, if you’re an account holder, you’re literally the beneficiary of a trust.
Hmm hmm, hmm, hmm. It’s not a trust that’s in writing. It’s just the simple relationship that you have. So when you’re buying coins on Coinbase, you’re actually not doing that.
You’re changing beneficial interests and coins between Coyne that you’re going back and forth with.
So there’s no there’s no purchase of somebody else’s coins. So again the answer is no on the 10 40.
So if I exchange on that, now that’s kinda the key thing is not your coins, not your crypto, right?
Yes, if you’re not the private key holder, right?
All right, so if it’s not my crypto exchanges crypto I’m the beneficiary of it is great, I can check no all day long once they bring that into my exodus wallet and diversify rebalanced whatever liked my staking rewards. What about that’s my Access Wallet? Do I need to check? Yes now?
Don’t keep keep that. You’re gonna. keep that in mind. So I took cash. I bought coins.
I was a beneficial party and owning those coins.
Then I move. I move from that wallet because I have the right to do that to my Exodus.
And now I own the private key.
So I acquired the private key with white cash, so again, that’s not a purchase, OK?
But just be careful about when you own the private key and when you don’t, and when you’re acquiring coins from someone else who owns a private key of those coins, so just be careful about that.
It’s not it’s not really that complicated.
But again, I have a video on it and stuff that may help.
Is that part of your privacy fight that I owe package? Yeah, it’s in there, right? It’s in the member. It’s OK, I can send to you guys if you want if you just want to look at that video.
I can send you just just give me um like when I send you the video here, that we’re doing I’ll send you guys a couple more videos That are produced on the subject. A fantastic Thank you so much for those.
Another got a great question here from Corina, So she has a second person, not her spouse, On ownership of the LLC, Can she bring her spouse into that LLC and still have all the benefits that we’ve talked about today? Yeah, sure, yeah.
Just don’t rely upon the married couple as having anything, any other consideration, but single membership, so sure you can bring in as many people. If you want the charging order protection, that separation you want to, people that are not married.
Now, there’s, There’s another thing we didn’t talk about, and I’ll just, It’s, kind of an easy concept, but I can have two people own the LLC and I can also have an innocent parti own it.
So if the Innocent party does nothing except own the LLC, it will never have a liability to anybody, and it will not be subject to anyone making a claim. It gets me personally, and reaching into the company, because I don’t own the company. Something else does.
And that thing that owns the company, that’s an innocent party, can be a trust.
It can be a group of people that have a common association, that are given a name.
It have no rights over the company. They just are a group that owns the company.
And the one who runs the company like you, for example, the signer for the company, makes all the rules and has all the rights and this sort of thing. But the group can actually hold all the rights to the company.
I didn’t want to go too far into that. There’s a lot to unpack without one, but I know that ones in your videos, I’ve been watching, Yeah, Yeah. OK, All right.
Do you, I’ve heard you mentioned on the videos, but can we get you to visit here to our community? Do you work with Canadians and British Commonwealth? How broadly does this? Does this information apply?
Yeah, we can, we can use these techniques in Canada, the United Kingdom, Australia, New Zealand, um, Ireland. And, by the way, Ireland has a pretty good setup there. The Republic of Ireland, you can set up a company over there and use it throughout Europe.
India is very friendly to, to this concept.
what I even know, they’re not friendly to kryptos.
Yes, correct. That. Yeah. Yeah. I know, I gotta be careful there, because I don’t know what they’ll do over there. I mean, if you start dealing with crypto’s at the bank, in fact, I don’t think you can do it yet, you will be able to eventually when you don’t need the banks.
Now, if you’re, if you’re in India or if you’re in an oppressive jurisdiction, let’s, let’s say New York City back home yeah, Yeah.
India in New York, Iraq, so, we have clients that do this, so what we do is we have the Client Open and Limited liability company.
New Mexico, I’m talking about Canadians, UK people, even Australia. OK, we do in New Mexico, LLC. We opened another account with that LLC and at Caleb and Brown in Australia. I like those guys because they don’t report on anyone.
And I kinda don’t care, but it’s kinda nice that they don’t.
And you can do your trades, are very sophisticated. It’s a trading platform.
And then you can, you can have access to your assets, then when you want to take it locally, you’ll want to locally take your time and set up a holding company like I’m describing. But to make it real fast, you would just do an LLC here in the states.
Go to Caleb around manage your portfolio and then you can set up a company locally in your country.
That’s how we’re doing it right now.
And I can vouch for that New Mexico company process.
There’s a lot of registered agents around the states, just do a Duck Duck go search forum and they’ll take just a couple minutes point and click and up and running very low expense checkout JJ’s videos on on how to do that.
What I do on those guys is I do not have you pay for a registered agent.
Now, the state doesn’t like me doing this, but they can’t really argue with me because it’s legal. So, what I do is I get an office space address for you on the fly. at random. As I set up each company, and then I put your name or any name I want, It doesn’t matter what name I put on there, as the agent at that address, so that I can registered in that state.
And then I don’t pay a fee for that, I’m just using an address, it’s not going to bother them. Nobody cares, but there’s no $100 a year, 150 a year for that agent. Now if you’re running a business, I would probably have you get a real registered agent.
And in New Mexico? There’s no annual fees. There’s no, there’s none for New Mexico and Pennsylvania.
So just put that in mind, which is, yeah, Very fantastic.
We’ve got a comment. Just comment and then another question coming up, But my 2%, I believe taxes or theft, and creating systems that you just described, keep supporting the old system.
While we’re along for a new world, it no longer supports the few, but the many members from the Netherlands and we pay about 80% wow! 80% tax.
Oh, my gosh!
Right, yeah. So so this would be where opening an LLC inside of the US that can then turn around and slow to company and say, oh, look of Ireland, perhaps.
Yeah, you can bring dollars back, right? You can do that. If you’re a country is not friendly to this stuff, you can. You can use Republic of Ireland.
I haven’t done that yet. I’ve seen that. I know how to do it, but I just, I sent some people over there to do it, because I don’t like to charge people money for things. I haven’t done yet, so I can guide you through that process.
Yeah. Let’s see. I was going to explain something else. Yeah.
Basically, Gosh, 80%. So stay out of that jurisdiction. My gosh. People in New York, here’s what we do.
People in New York have a difficult time opening an account at some exchanges, or let’s say, Caleb and Brown because of whatever restriction or a New York residents, and the way that they determine that. It’s a signer on the account, right?
So, that signer is going to use his New York driver’s license or something, or, or an address.
So, the way we get around that is, we create what’s called a declaration of domicile, or a lease agreement for another jurisdiction like Florida mm. And we just create the documents, and we give it to Kellermann Brown.
Now, they don’t care whether what you’re doing, They just want to have a document that says, you’re moving out of New York or you’re a resident somewhere else, And here’s the document that says so because they want your business, they just don’t want to her be harassed by New York.
So if you give him plausible deniability, they’ll open your account if you’re from New York.
So we deal with that here, if you guys have a situation like that, let me know because we could pretty much walk around anything.
We’ve got Rachel asking, Can you speak a little bit more about the asset to use for offsetting liability such as real estate or a car, et cetera, OK, well, you want cashflow.
So here’s a quick one.
You can, you can get a website in about a month, that’s running by itself, pretty much. And maybe you might need to pay attention to it once a week. But it can produce whatever amount of cash flow. And I say a website, because you can get a website for anywhere from 2000 to $7000.
A lot of times, a seller will finance it to you, and that will make $7000 a month.
You could you could pay 5000 for it. It’ll make you 3000 a month, for example.
And so I use those, and I’ve been using those frequently, like recently, I should say, for like the last 7 or 8 years, I’ve been using those for people that just need to offset a little bit of their living expenses.
Like, some people find themselves kind of coming up short when they’re, like, in retirement years, and they don’t have enough money to comfortably live, so even if they’re in retirement, I still show them. And this goes to show you, it’s not that complicated. A person who’s, you know, didn’t grow up with computers.
I’m showing them how to buy a website and make $2000 a month and supplement his income.
So that is one example. Another example is like you said with staking.
Another example is literally buying another asset like, find a broker and buy it. You can also, you can buy a business. You can buy into a business, for example, you can buy into a private equity. This is something, I’m gonna, I’m gonna put a series together explaining the four categories of assets you guys want to look into for asset allocation or re-allocation, OK, When you wanna get partially out of kryptos, There are four categories and they certainly don’t include the stock market because there’s no market, OK? We know that F prime and we’ll get into that. So I’ll give an example.
Let’s say chick fil a is popular, where I live it just happens to be. I mean, they’re always pan, right? So I would be more than happy to talk to a broker and see if I can connect and set up a meeting with the owner of that local chick fil a and I would ask him if I could buy into his company. Let’s just say, I want to put in a quarter million dollars to start with. Maybe I wanna put in five, but I’m gonna start with a quarter million.
So, I would get a meeting, and my proposal would be, can I own a percentage of your local operation here? And I have a quarter million dollars in cash.
Maybe he wants it because he can use the cash for something, right? Maybe there’s some deal there. And maybe he’s making eight or 12%, or maybe 3%, I don’t know, we can work out, whatever.
And so, I would then buy, I would take my quarter million in cash and I would put it into his ownership, and then I would start receiving a dividend or whatever our deal is, OK? That would be a way to take money out of Kryptos, and get into some private equity.
Now, there’s more sophisticated ways. Here’s another example. Let’s say everybody knows gold, right? You can just buy gold, OK? You can buy gold, put it in a vault. That’s not exciting, but it’s safe and secure. I tell people if you’re old buy gold.
What I mean by old is, you’re not very creative. Or you don’t wanna go and take risks. You just want to sit back and chill right with your money, so therefore, you would go into gold and as liquid. But what about going into a base metal? Now, I’m not saying, get a get a big yard, OK, where you can get a forklift and move all these copper bricks over here, right. Oh, this Boolean right into a yard, and we’re not doing that, OK. It’s not doesn’t make any sense. Understand that.
The reason why I say coppers, because copper is the most recycled metal in human history.
And there’s some really new use cases for copper, one of them has to do with superconducting. If you guys want to check that out? I’m not gonna get too far into that. Fascinating. Yeah, Superconducting, yeah. Really amazing.
At room temperature, it’s amazing.
But copper, if I want to buy a contract for the delivery of finished copper, let’s say, copper, wire and tubing. This is a common example. I get people, OK. So I don’t care about the mining copper, because that’s long term mining, high risk, you know, long term stuff, I don’t know that, I’m not gonna invest in it.
I don’t want to know that, but I do understand the supply chain, on the, on the side of copper wire and tubing. And I know that there’s a regular sale taking place at all these manufacturers, right? So I’m gonna go to a factor and say, I would like to buy copper, and a guaranteed way. That means I’m gonna give you X dollars under a contract, and you’re gonna give me a discounted price.
And I can exercise my option to take delivery of the copper in that contract. Or I can choose not to. And you keep on selling to the guy you’re going to sell to anyways.
Otherwise, I’m going to buy the copper.
So now my money’s in copper, finished copper, not a commodity.
It’s a product that everybody wants.
And if I don’t want it, that guy will take it. At the mean, in the meantime, I’m still making 3%, two, and a half, whatever, some small amount. I’m not trying to make a lot of money, that I’m trying to park some money there.
You see I’m trying to get out of, or, you know, kryptos and dollars and things like that.
Turn it into something cashflows with less, much less volatility, because we’re still going to build a bridge. They’re going to be built in places that need.
Oh, my coming in. And why superconducting gap.
We got lots of cool. That’s a fantastic idea. Another one, too, that we can talk more about that? I’m sorry. Go ahead.
That’d be great. I’m starting to jot some notes down here too, to make sure that that I have a chance to connect with you and figure out how to plug this in to our community. Beautiful. Belgium, is that work? OK?
With what we are talking about here, Belgium, I just looked at that a few months ago, Belgium I thought was from my I have a file on that I thought it was a friendly jurisdiction.
I thought it was a good place to organize a holding company. So I would just look at the language you wanted to shop for is holding company.
You can look, you can, you can easily set up a, an LLC in the Republic of Ireland and use it in Belgium. You can also set up a company in Belgium. And, I believe, it’s either going to be a limited, a private, limited or private limited liability company.
And, in Germany, it’s going to be a GMBH.
Don’t ask me to pronounce that. So, so, yeah, Belgium from my memory.
I did one time I researched this, it looks like a favorable country in which to register a company like I’m describing.
In Product Germany, you got to give some love to a pretty sizable contingent of our membership that’s from there. It’s very unfavorable staking law. So yeah, once you tie it up, it’s there for 10 years.
Can they use some of these strategies? Is workarounds. Germany name, Yeah. This is what I mean, like I even do this for Californians. I mean, if you’re in California, it’s another country, I get them out on paper, OK. I move my client out of California financially on paper.
He’s still OK, Alright? So we can do the same thing for Germany. You guys in Germany, I mean, if you could make a phone call and be on the Internet, you can organize a company. and somewhere else.
I mean, I would organize it in probably the Republic of Ireland.
I would start there, I would look at that as an option.
You can also do it in the States. I’m not, I hate to say just the States, because I do it. But you can just pick a country. Pick Republic of Ireland. That’s what I would look for, first.
And be careful to, I’d have to look some more about your laws, because we have certain issues here. Let’s call it issues. Where if if a US citizen goes and signs on a corporation or bank account in another country, he’s really not out of the country. He’s still. He’s not offshore, because that country, most of the countries around the world, are going to report back to our country here. And there’s new disclosure requirements.
So, be concerned about the disclosure requirements for German citizens.
If you had a dual citizenship that would help, or a second residency, that would help if you had documents for that.
So, just keep that in mind.
I’m not sure if you need that, but one of the first things I would look for is a foreign company, like a guy in Canada. OK, I can set up a company here in the states.
I can even open a bank account where he’s the seiner, and we can do crypto investing at Caliban Brown.
So, I would consider something like that.
I definitely would love to get that information from you.
Like, just enough to be able to get it. Cranking our folks, get them, get the expertise that would be fantastic sub project.
Yeah, Have a question so on exit is the coins are not bought in cash. They’re bought bitcoin.
So again dollars to exchange Bitcoin on the Exchange in Exodus Wallet because they originally started in dollars even though they have possession. Now an exodus that is not a check mark Yes, well, you’re taking your coins and going on exits and buying It’s coins and so that would be a yes on your 1040.
Your coins for someone else’s coins.
That’s a yes on the 10 40 even though exodus uses centralized exchanges behind the scenes.
I don’t know, um, I’d have to do further research.
I’m making an assumption that exit, as holds the ownership like Coinbase does But it doesn’t matter because it’s not your coin anyways You’re using coins to buy coins from coins that you don’t own the private keys, too. So that would be a yes, on the 10 40. I don’t need to know how exodus does it in that kit because you’re taking coins to buy coins.
OK, so that is a yes, that is, that, is it. Yes! Now, keep in mind. Don’t be afraid of that. It’s just like, don’t be afraid of KYC, because that does not create a tax liability. They can see everything you do. I write up everything for, I’ve been doing this a long time. Since the nineties, I assume that the IRS, the tax people always gonna look and see everything my client did and everything I did for him, and still be OK with everything I did, and so far, I’ve never had a problem.
So, it’s OK to tell them I’m doing this, It’s just, that when you go to take this profits, make sure that it’s done in a way that doesn’t create a gain for yourself.
Which we talked about earlier, and you talk about in your video series. Yep, yes.
If somebody already checked yes on their 10, 40, but they never exchange crypto back to see, it’s all held so that’s the same thing, is if they now, if they bought all their different coins on the exchange moved to Texas.
Hey, I want something else Move from Exodus back to the exchange.
Made the exchange there and then brought it back. Does that a yes or No?
No, because you didn’t buy coins from someone else with coins So access if that’s just the holding.
That’s just a holding wallet for security sake, but all of your exchanges take place on your swamps take place on an exchange.
That’s right.
Right. That, that’s all the same. OK, ask yourself this question: Did the beneficial interests change?
There’s no third party.
There’s no second party in their tissue, the whole time, I mean, Coinbase never sells them to you anyways, right?
Private key is owned by Coinbase.
So until you tell you, move a Texas. Yeah. Yeah. Long as your swaps are done on an exchange that’s still unknown.
It’s still a no, That’s correct. OK, it could change, but for right now I think it’s still a no. Here’s an idea for you, if you take a lot of dollars, if you want to have the privacy, You take dollars, you go into the exchange by the coins you want, Don’t do that. Go on the exchange by stable coin.
Then send that to your wallet, re-allocate to how the coins you want.
So I know there’s maybe a couple of fees there. Maybe it’s worth it. I don’t know.
So now you’re allocated, nobody knows what you bought You’re allocated in some other network, not Coinbase.
When you go take back your profits the ones you want to take either you’re gonna go through escrow That’s not on Coinbase I could take $10 million through escrow you see I can do that from my private wallet Or I can take some money back that if I don’t. I don’t care if they see that I did this. So I take, I go back into stable coin. Go back on Coinbase in the same stable coin.
And then into dollars.
So now it just looks like I put dollars in stable coin, stable coin dollars out. You know, back and forth. There’s no nobody asked like, hey. We see Coinbase gave you $10000. That came back as $10 million, how did that came out, OK? now chances are you can avoid that because you’re gonna put it in assets anyway. So you don’t need them, you’re gonna go through your escrow. Your gonna go around the other way. C: So, you gotta, you gotta think this through, but don’t be afraid of a situation like this.
So, let’s say, OK, I’ve had a situation where the client is trying to make a deal with the IRS, and already had a thing going and sold his boat that was sitting on its property for $30,000. And the Iris can see it, the money went and his bank account. And that’s what they’re looking at. And they’re saying, hey, we’re trying to figure out how much you have to pay is based on how much money you have. And we see you sold a boat.
And so we go to the audit or whatever it is and just tell the client, confirm that the IRS, what it just discovered about the sale at the IRS is correct.
And then stop talking.
You don’t have to talk about it. Just say, OK you got the I sold the boat because for all they know you had a more pressing creditor to pay.
You know, maybe you had appear grandma first before you pay the IRS, right?
But you don’t have to tell them that.
You just sit there and say, yep, you know, I did that, and those records are correct.
And then stop talking, So it’s not a problem, OK, That they see some things, like the other day I had to move. I can’t tell my wife for years, stopped buying Bitcoin on Whatsapp you know, and she wouldn’t stop doing it. So then we had this huge amount of money on whatsapp and then she got scared. And I said, OK, great, Let’s move on. finally, so, I had to send them a photo of my take, my picture, my driver’s license, I’m with my face.
And I don’t like doing that. I don’t even use my driver’s license for ID, I use it for traffic stop, but that’s it. So I didn’t mind doing that. Because it was a one-time thing, and, yeah, OK, my data’s out there.
But it doesn’t create a liability.
So just realize, getting an EIN does not create a liability a tax number, your 10, your, Your LLC, by the way, guys, when you do this, it may get a 1099.
It will not create a tax liability. It will not create a filing obligation. That does not do it. It’s filing a return that creates the filing obligation.
So, you get to 99, it looks like I should, I should do something to marry up with that. If I just sit on it, do I need to have my accountant write a letter or put it on my corporate files? Nothing? I keep them though I keep it files. I scan mine. I get lots of 10 99 for my companies. I’ve been doing for 30 years I get 10, 99, and I scan them and I just keep them because it’s nice to have a record.
I don’t. There’s no returns that are filed mostly.
Great We got somebody saying, if I inherited house, how best to prevent gains to actually buy it for dollar instead? I think you mentioned something. You know, me and my brother, my mom, quick claims. How would you recommend going about that?
Don’t inherited make the, make the air, the LLC, or trust or whatever structure, don’t make yourself the air, or take it out of the relatives or state first.
Like, what’s my mom, right? My mom knows what I do. I would just tell. She would say, OK, John, like I want you and your brother have the house after I die, right? So I say great mom. I follow Quitclaim deed and we’ll need the property over from your name over to Accompany where you’re the owner, I’m the owner and my brothers owner, or you’re the owner, it doesn’t matter, it really doesn’t matter. As long as I control the paperwork, she can be the owner forever for the next hundred years and I can never be the owner and I can still control the property.
So, let’s say my mom, my mom dies, and then that Property, it’s not part of her State.
So nothing happens to it, right? It’s just owned by a company, that’s a piece of paper and my brother and I can then exclusively do what we want with it.
So yeah, that’s how you get out of that if, but if your name’s on something, if you’re inheriting something, can’t help you after the transaction, you’re subject to whatever rules Apply.
That’s where the planning part as, kinda ahead of time. Right. It has a question: does this apply to saint Lucia?
I don’t know. I believe that’s the countries that not, I know, I mean, Yeah.
It is a country in the Caribbean: OK.
Any nation has its own set of laws and I believe that you would have a similar use for what I’m suggesting or the way you set up your account with a company charging order protection. I don’t know that the country itself recognizes charging order protection.
Canada does not, but you can still get it, by the way, you do the contract.
So what, you know, if you have a bank account there, here’s what you want to find out.
Can I open a holding company in my country, and use it without filing a return for it?
Without having a tax liability, the answer is, probably gonna be yes.
You’d have to do a little research, because a lot of times, accounts won’t tell you that.
Or they’ve got the opportunity to maybe open a company here in the US, that you can do that from anywhere in the world. Yeah. A lot of, a lot of big companies organize their finances here in the states. It’s not what you think. It’s the opposite of what they tell you in the news. A lot of, a lot of companies come to the states to be, headquartered because of the tax breaks, and because of the privacy. I mean, I can organize a company here in a completely fictitious name, with all bogus, the whole thing.
And I could, I could do business with people with it, and nobody cares.
I don’t see that I can do that in other countries.
I already knows. I sure am every right through this Argentina, kinda kinda saying you budget LLC and tbilisi, Georgia?
Though I see that enriched kryptos are bought and her personal name, how can I move them into my George business, sort out, the answers? Would it be leasing or in Spain?
OK, that the company, I would pick the country that’s easiest to register a company. I don’t I, Georgia, in my mind, I thought it was an easy country to register, and I could be wrong. I’m sorry, I’m not to adapt on that, but I would pick a country that’s easy to register the company, and open a bank account. Once you have that. you can then start titling your property, How you want, or taking profits in a way that would defer any taxes.
I mean, a lot of your your content is based on Western law, not specific to US.
Law was based on Western, which all Denominate from really the same thought processes in our laws come from the United Kingdom, England?
For 500 years? Yeah, 500 years of, yeah. Laws.
So, yep, absolutely.
We’ve got Peru, Canada, LLC, IRA, Roth, IRA in in the US. And I set up. Or where’s the third place, again, kind of, whatever is easiest.
Yeah, I would pick a jurisdiction that’s easiest. Like, that’s why I tell you if you’re in Canada, the UK. Let’s use New Mexico.
Right. Because if I, if I start with Canada, it’s going to take longer. And the client’s gonna get frustrated. So, I just say, look, I can do this in one day. New Mexico LLC, Caleb, and Brown. Take your time organizing what you need over there.
Lots of times you can go right through escrow with your Bitcoin wallet in Canada and then just take title to the property in a company name and not even use a bank account there.
Just gone through escrow, that’s beautiful.
If you go, check this out, if you go through escrow in Canada, OK and you’ve got holdings in New Mexico with your Kelvin Brown and you got, you want your coins over there and KLM Brown and you open escrow in Canada and you put your Bitcoin in Canada, the Canadian escrow, and you liquidate and you buy the property.
You did not have a bank account nor did your company anywhere in Canada. And the escrow used his bank account to liquidate the funds and send them to the seller.
Now you’ve got a piece of paper with property and your company’s name on it where you go, right? Just using escrow this beautiful, creative ways of how he can legally use paperwork, titles on it to control what you want control And because you don’t own it protect yourself from liabilities for taxes and create cash flows. So you can go create opportunities or experiences.
Yeah, exactly. Is there This will be my question between you and I afterwards. It was their video where we can find out about buying the website page that you mentioned for cash flows.
So well, maybe get that to the members afterwards.
OK, man. Creating cashflow.
You were saying, life for older. Many of our members are actually Kenny in that.
That retiree demographics, where, Hey, you know, if I had a couple extra thousand a month, OK, breathe easier, OK? There is one video, I did, a series of, these, there’s one on privacy fight that channel on privacy fight.
It’s one word on YouTube, In fact, I can post the link here.
If you can give me a second, I can probably grab it Yeah, and it’s a short video.
I’m explaining the very basics Millimeter, He said, that’s on public YouTube, so it’s OK if I post this on our communities disclosure.
Sure. Yeah. Great. Thank you. Yeah, the other ones. I’m going to send you guys, just yet keep it to yourself.
Um, please, OK, if we put that on our membership site, so that is contained within the community, you can, and a lot of the content that I, that I have in the ones I’m going to send you, I’m going to expound upon that.
But I still want to keep it private for the members.
And of course, we want to encourage members that if you find it as much value as I do on this, spend a few bucks or kryptos, pop onto privacy, fight dot IO.
Get ahold of those.
Basic, Premier, and Ultimate, especially, the ultimate, he goes deep into details on kryptos.
Yeah, here we go, it’s only 13 minutes, and I’ll just post the link right here, it’s How to acquire new cash flow for beginners. Now what’s cool about this is for almost no money or a couple thousand dollars, if you just go through that process, think of it like a hobby, and you learn how to do that.
This is a tool that you would want to know how to use, and in order to manage large amounts of money, in my opinion, these are skills you would need to know. So, ask yourself this question. I’m gonna leave you guys with this, I mean, I’m OK, I’m welcome. I’m happy to talk more but I would leave you with this question.
What would you do with $3 million.
If you’ve never had it before, see if you can answer that question.
You hopefully want to be constructive with it and keep this in mind.
I’ve seen many, many situations over the years and I’m just going to be I’m gonna use hyperbole here but.
Money, large amounts of money is like fire and it can kill you.
Literally because you can do some stupid things. So, if you’re doing stupid things, when you don’t have a lot of money, you will do bigger, stupid things when you have a lot of money. So, just kind of try to control yourself and connect with people that are entrepreneurs and investors.
And see what they know what they’ve done over the years.
That’s where I’ve received a lot of my learning.
Is seriously sitting with multibillionaires when I was not a multi-millionaire, sitting with them and in the lobby at a hotel, waiting for a ride or something and having a drink or just talking. And they’re like, Hey, guess what. I did the thing, and then I pick their brain on this stuff. You know.
And so that’s how you learn, is from people that have learn the hard way, OK? When you lose money on something, we call that tuition. So that has to be your attitude as well.
Don’t be afraid, OK, to take a risk.
There’s winds, and there’s lessons, right. Winds and lessons that, hopefully, it’s a lesson, yeah, all right.
OK, I’ve got, I’ve got that link. All our members with us today have that as well, I’m not sure if recording will bring the chat. But that’s gonna show up in our, on our show notes.
Daniella that’s privacy, fight dot IO.
No, no dot com privacy fight dot IO.
Um, yeah, which is fabulous. If you’ve got more time, great, we have just a few more questions. Sure, I’d be great. Yeah.
Great. So if you move from Coinbase directly to your treasure that I think you were saying, That’s a no. Unless you do any swaps, Internet, but the treasure which would make it a yes.
It’s it’s a no unless the coin jer, you’re using or acquiring coins that someone else on the private keys too.
So, if it’s your tracer no, it’s a, no, it’s a no.
So, try tracer is just the additional security on top of exodus. Think of the Tracer as another wallet that you created on Coinbase.
You know, you can create new wallets Kenya, I don’t know if you can walk in trays or you can, Coinbase.
Like you’re saying, Coinbase owns the keys where the Yeah OK, the beneficiary of that, but tracers just an additional encryption method on top of meta masker exodus that the telling of the fact, is whether or not the beneficial interests have changed.
The beneficial interests are determined by whether or not you care about it, before and after the transaction.
So, if I sell my boat, to my neighbor, well, I’m not going to care about my boat after that. It’s on him now. He’s got to take care of it and all that stuff, right? Well, the beneficial intercept changed.
But if I sell my boat too, let’s say my brother, who lives next door, let’s just say and we still go out on Saturday. I don’t care about the boat, right? So it kind of, the beneficial interest kinda wouldn’t change, even though the title might change.
So OK, but if I swap some Ethereum first and Super Farm, the Ethereum I swap that super farm food they can do whatever they want with it. I got super farm that. Well that would be a yes. Yeah. Right? You, you traded, you got rid of one coin for another one.
And the coin you acquired came from someone else who own those private keys to that coin, So yeah, that would be a yes coins for someone else’s coins.
OK, if if my coins went to an exchange, that’s a change of interest, right?
From Exodus leaves my private wallet goes to an exchange like it’s something different that’s changed beneficial. He would say yes.
Yes, OK, so does that, Does that make it an actual game? No.
Because it wasn’t disposition and and dollars where I could actually correct You just said there was no Disposition of Asset. That’s correct. I hope everybody picked up on that. Very good. The the other thing is, a lot of the instruction, Almost 100% of it, actually, the garbage on the internet. I should even called instruction this. Look, trace it back. Who’s coming from Forbes? And these same people, OK, it’s coming from the IRS, and they’re speaking in terms of accrual based accounting.
We don’t use accrual based accounting.
We don’t pay tax on the value increase. Now, sometimes we do, we get tricked into that.
But we’re not supposed to be paying tax income tax on the increase in value in a thing that we own.
Uh, all these are telling us to do that.
It’s cash basis accounting. It’s once you dispose of the asset and then the change in value of it in dollars. Because I now have the dollars, in my hand, that dollars are being taxed, cash, basis accounting is how we’re being taxed.
There is no tax on Kryptos, not anywhere in the world except El Salvador.
Because they just annexed Bitcoin as legal tender, right? Legal tender and it’s taxable, and that’s how you make a taxable I haven’t seen that here yet. So there is no tax on crypto, there’s no new tax on kryptos.
What is being taxed is the fiat currency, always and the reason why I know that is because I can only pay the tax in the thing being taxed in dollars. That’s right. Nobody comes. When it comes to your yard. It takes a chunk of your yard to pay your taxes. They did, it. Did it. Yeah. And you know, what’s funny is, the currency we’re using as being tax constantly because it’s inflationary, it’s designed that way. It’s being taxed constantly. So, the longer, that’s another thing, I mean, that’s a risk to you, hold onto that, and it’s on fire.
So, you’re having a, the IRA, OK. You get an IRA to avoid attacks and do a certain thing. You have to use your money a certain way.
You’re being taxed for the loss of opportunity while you’re gonna wait for that tax benefit down the road, you’re getting taxed and they’re like any into whatever tax rate they put you in further down the road.
Uh huh?
Yeah, and, yeah, and now we’re talking was only a six X, so it was only 600%. That’s outrageous. Yeah.
And simply your content with LLCs and why is use that we wind up 0%.
That’s right. because you just perpetually never let the money reach its destination. OK, that’s what you’re doing.
It’s deferred, Uh huh. Oh, that’s That is a key concept. Their monies made to move, otherwise it stagnates. What does a California resident, they’ve got an LLC in Wyoming, and I have a hard time opening a bank account.
Uh, OK.
I would want to know, or that Wyoming, LLC, it sounds well.
I would want to know if you use a California address, when you register the articles, with the state of Wyoming, because if you did, you’re probably going to get a bill from the state of California.
Pretty steep one to from your, from whatever filing fee. Yeah, They’re going to say How dare you register outside our state? You’re gonna pay us a fee as if you registered in the state.
They’ll send you a bill for $800 So that’s rule number one If you registered if you’re in California resident and you register a Wyoming company, do not use the California address for the Wyoming registration.
Yeah, you have to make one up or use your and Betsy’s over New York, whatever. OK, do not use the California address. That’s number one.
Number two Oh, You didn’t? OK. I think I think she he or she said you did OK. It did not good. So you’ll be fine there So what did OK. What is the problem with the bank? I’d have to know what the bank is saying that they’re probably having a problem with?
You’re a resident of California and it’s a Wyoming company My response to that is so what Wanted to find open a bank account, right? I’m trying to operate a business OK, and this is how I’m choosing to manage risk What’s the problem? Am I suspect in money laundering? I mean, do you need some other disclosure for me? No, my LLC doesn’t have a utility bill, that’s nuts. I disorganized that I have a utility bill. It doesn’t have an apartment, OK, It’s a piece of paper.
Come on guys, OK, sometimes you have to talk to them like that.
Right, going back to the tbilisi, so, Christina saying, yes, that’s right, she registered LLC, three years ago, Lucy given in Spain, the cost was close to a thousand mural and tbilisi costs only €40.
So, she has George an LLC with a business bank account there, purpose is online sales, but living in Spain with my family, so I don’t exactly know how to go about it regarding the crypto monitor my personal name and paying taxes smartly on the upcoming crypto returns oh, That’s a bit of information See if I follow that.
So she’s running a business out of her country out of out of two. please see.
She’s in Spain to please see this more more Cost effective to do that so the Georgia LLC with a bank account in Georgia, but she lives in Spain. So, how does she go with crypto bought and her name?
OK, you can move from wallet to wallet from your name to your LLC name. If you want your company name, if that’s what you want to do, I’m not sure you can go from wallet to wallet because, again, your beneficial interest don’t change.
There’s nothing complicated there.
So, she saw, she has to do, is, open another exit as wallet in her, that her George, an LLC controls, You could crypto over to that. And then she’s taxed according to George in tax law versus Spanish tax law.
Yeah. But I don’t know about the tax because you’re just going from coin to coin. Even if you go from your coin to a stable coin that’s not taxable, I don’t think, I’m sorry. So, in any future dispositions, depending on how she does, OK.
If you, if you dispose of it in a jurisdiction that’s gonna, first of all, you’re gonna get a report for that sale into your local currency.
I gotta be more specific because it depends on how you, how your account is like, how are you identifying yourself at the account as what kind of citizen?
And then who’s the account holder?
So I don’t know.
Might be good on the book with you, because it’s more involved that we can help you get into details. And yes, and I would have to have that conversation on the assumption that the there is an income tax.
Then I think we can answer the question, but I would really need some dialog there.
But then it will go back to two. Are you going to take it as income, you control, or is it going attorney, exactly, exchange a property, control with property, company controls? Yeah, I think, I think ultimately, once I get the facts on it, it wouldn’t matter anyways because we can restructure the way I’m describing.
So, yeah, you can move money around all the time. I believe you can do it anywhere.
I mean, there, there is such a thing as an innocent party, OK?
What does that, let’s say, a baby, Right?
When a baby comes into the world, he doesn’t owe anybody anything, right? What about a company?
Did I just registered yesterday? What about a handshake, deal with my friend?
That’s an arrangement, right?
It’s a contract, a Handshake deal, that’s a baby.
It doesn’t know anybody.
It’s just between us too, right?
So then, let’s say after a week, the two of us go to rent a commercial space and we have to sign a commercial lease agreement together.
Now, we jointly have a liability, OK, there’s your first liability.
What about if the owner of your company or your asset?
It’s like that, the two people with the handshake and it stays like that.
It can still be an innocent party and never have a liability to anybody and then you get to control when that happens.
So, you can learn from that innocent party.
It doesn’t ever have a tax reporting, you don’t have a taxable income because it’s alone now. It has to be legit loan where you have to be on payments to go back so by enough to purchase an asset based loan back. Yeah. We could do that before me before Many of those. Yes. I’m just saying we can do that. So it’s how to generalize that, you know, in Georgian and CV or whatever. I’m sorry.
I don’t know the believe that it would be intuitive.
OK, any foreign jurisdiction you can’t, you have, the right to contract is what I’m saying.
You can get into an agreement whereby property is owned in which the interested parties do not at any one time, have the exclusive right, to sell the property.
That is what I’m saying, and I were just talking about how we do it with LLCs.
You guys can do with the partnership or trust in any country you want.
So, the actual way to do it, may take me a little bit of time to help you, You know, figure out what it is.
But, I mean, if I talk to an attorney in that country and he was honest and he’s going to do the right thing, he could you know, Right away, he would say, Oh, yeah. We have these over here and we can do this.
They won’t do that, though.
So, I would just recommend that you guys don’t seek out help from these professionals, like accountants and attorneys, in a way where you’re doing it, because you don’t know.
Make sure you understand what you’re doing, and then you’re just going to them for what they do, the accounting, or make sure that he’s, The attorney can tell you what you can and can’t do.
Don’t, don’t just put up your hands, go, please save me, tell me how to do this, because you’re just gonna turn yourself over, and you’re not going to have the benefits that speaks to the self empowerment and self responsibility, that they were all kind of drawn to crypto. Just part of that.
And, again, the question is, will, you know, hey, how do I build that bridge across JJ’s materials?
Right. This is a non paid announcement, but get him to JJ. Materials is going to teach you how to do those things, and then you’ll know how to do it. And then, you can ask some discussions with your accountant, asking the right questions. Right?
And catching them, try and do, or your attorneys, catch them, trying to get you to do stuff that supports their profession rather than you and your family’s interests.
Yeah, Yeah.
Time Plug for tight bank from Stacy Sustained Bank in Texas. Does online banking pretty friendly for unique situations? I think that was a response to the case. With the Wyoming. Yeah, OK, you gotta for another arrow in your quiver to Yeah, yeah.
Clarification, exchanging coins and access does not change the beneficial interest actually does, because whatever coin you swap goes to somebody else and you don’t care about that one.
Yeah, true, no tax on no tax on exchanges of coins with an exodus only if we exchange the coins back to see ups.
So I think we have a couple of things in that.
one don’t mean that if you bring stable coin over and then you keep the privacy what’s going on?
There’s no taxable extra affordable event inside that wallet, right? just make sure it’s the same kind of stable coin when it goes back.
But we don’t matter tax. It won’t matter what kind of stable coin any stable coin.
Any stable coin Because it’s pegged to the dollar.
Anyhow, yeah.
Yeah, so it could come if you come over, OK, great, and you can even go you can even go buying Bitcoin and leave in Bitcoin Do whatever you want and then come back and get Bitcoin?
I just use a stable coin as an example, but just make it the same coin, but it could be any any stable coin, or the same coin every time, OK? So this keyword is consistency, or consistency. What you’re trying to do is create the value of the coin that’s moving around that looks like this, flatlined. Mmm hmm, that’s all you’re trying to do at Coinbase it’s just flat line.
But there’s 10 million of those points now instead of 10000 of those coins, that’s a different story, we could talk about that.
But, uh, yeah, there’s a way to get around that, too.
OK, if we sell crypto to stable coins, there is no tax, because you’re not selling it.
You’re swamped your change property property No gain.
Yeah, Lin Lin as a response to our California Why don’t you tell them you’re going to buy real estate Wyoming?
Yeah, just tell me anything. Yeah. Hey, guys, I’m buying, we’ll say Wyoming, you wouldn’t know about that, but I’m investing in real estate in Wyoming and why, do you think of it, then, the HRSA, the Bank group? Yeah, sometimes you can make a comment. You can make a comment to the person at the bank.
It’s in a way that makes it sound like he should have known that, and it was a stupid question, but you can say it politely, and then he’ll stop asking you.
You can just get past that.
Sometimes we have to do that.
And as key folks, We’re not saying don’t tell the truth or saint. Tell him only what they need to know.
What might you at some point, consider buying real estate? The right piece of real estate to cash flow strongly in Wyoming? Maybe so, there’s your purpose.
Even if you never actually do, you’d be open to it so therefore that’s for your business purpose or your website to sell socks. Right, right.
Celera Bank is another plug, I think one of the main self directed IRA companies likes to, or yeah, OK, I recommend store is another one.
Yep, they’re out of Colorado.
Great, we made to the bottom.
one last Christina, she’s not hundred percent shareholder, so an individual owner of the Georgian LLC?
Just back in Spain. Yeah, probably better. Just reach out to Jake.
John, Jay: Top of it.
And Lynn, yes, we’ll get down. We’re going to get that information on the cash flow.
Website visits, we’re gonna get that out to you following this: What’s the best way for people to reach you? You mentioned a couple telegram channels and that we can maybe get a list of those sent afterwards, but for anybody watching the video that hung with us for two hours, it’s just amazing content and information. Thank you so much What’s the best way for them to reach out to you?
Is it different things Eisa coins and privacy fight?
What’s the best way the best way is through telegram um?
Through my telegram ID.
You can call me I know for people out of the country that’s going to be a more difficult, but It’s hard to get me on the phone if you call me in the morning.
I’m here Like I like I said I do want to set up a call in service and a service where you can reach me Online Through ace of coins dot com This is not yet available.
It may be next month, So that may be the way to get me almost live. So there will be people that can answer questions, but then you can also reach me that way. So for right now, it’s Telegram.
E-mail is kinda slow. Sometimes I might miss your e-mail. I try to keep up as fast as I can.
But a singleton, press at proton mail dot com You can just keep that in your records there.
Shoot me an e-mail, But then call me right or try to get me on telegram. Get on my ace of coins distribution list because I do it Thursday evening call, you know, every week.
And I cover a lot of these topics.
John, Jay, I’ll stay back after the call if you don’t mind and tidy up a couple of administrative things. Sure. Wow, Great, great, great stuff. Thanks for all the work you do, and you’ve done for so many decades already.
And helps you make wise paperwork decisions that literally changing lives. Yeah, appreciate your help on the call. Certainly, glad to do a bit.
Yeah, great, talk to the in person. Thanks, everybody, for joining us.
OK, yeah, I’m gonna go ahead and add anything else, We’re good, We’re going to end the end, the recording, then I think we’d go ahead of that, yes.


1. John Jay Singleton was invited to discuss his strategies for investing in cryptocurrency and managing such portfolios.
2. He advises using contracts with non-binding mediation clauses for customer service to help resolve disputes in a neutral manner.
3. Singleton spoke about utilizing limited liability companies (LLCs) to protect individual assets from personal debts.
4. He suggests altering how property, including cryptocurrencies, are used and owned to prevent issues with tax collectors and debtors.
5. He proposed a strategy of purchasing tax liens from counties or states, allowing acquisition of properties at significant discounts.
6. Singleton addressed the issue of how tax reporting for cryptocurrency transactions works, even when the coins haven’t been sold.
7. The idea of moving from holding Bitcoin to having an escrow agent liquidate the coins was presented as a potential investment strategy.
8. Singleton emphasized the importance of setting up proper financial structures and suggested not trying to completely avoid taxes, but rather manage them effectively.
9. He discussed managing various assets including real estate, securities, and stocks, using strategies learned over two decades.
10. He concluded by discussing methods of transforming volatile assets like cryptocurrencies into cash flowing assets, emphasizing the importance of beneficial interest in asset disposition.

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