U44 – LLC Discussion Regarding Basic Tax Questions and using the LLC, What is Re-portable and Taxable and What is not
0:02
Right, hi, everybody, this is John Jay, It’s August fifth. Thanks for joining. You could see more content or privacy fight dot IO. There’s some videos I put on.
0:11
Um, I publish on YouTube, the Privacy Plate Channel. Privacy Fight is one word. I’m adding a helpdesk to … dot com. So there should be a number in a chat window and a ticketing system. You guys can have access to more information faster. You can also reach me that way.
0:27
It’s not set up yet, we’re working on it should be soon.
0:30
Appreciate your patience, and I hope that on my comments about what we’re going to discuss this this evening are, are helpful. And I am sorry about that. If it’s a mundane, if it’s mundane. If you think it’s boring, please throw something at me, OK, and let me know. Because I just, I’ve been receiving a lot of questions on the subject. And it looks like we have a lot of new people, and some of the people are really smart at what they do.
0:51
And they’re just kind of new to this concept, they’re new to Kryptos, and then they kinda get this other information, and then there’s like, wow, too much information.
0:57
So, I just wanted to take a step back and just review stuff in the way.
1:02
I’m gonna review a basic outline of how I recommend things. And also, I want to give some examples. Alright, so, kind of as a benchmark, our guide for everyone to follow.
1:15
Alright, so and then.
1:15
Um, just, we can ask.
1:17
We can do questions and answers Here.
1:20
OK, so let me just start an intro here, I wanted to answer a couple of questions and I just got this on an e-mail a few minutes ago and I thought, it was really perfect.
1:28
that, I could just, it was, these are great questions.
1:30
I mean, this is the kind of thing So this person is asking me, not to single somebody. I’m not criticizing, I’m just saying, it’s a common question actually.
1:38
I noticed some CPA’s on the internet, some CPAs are saying, OK, so I’m gonna, I’m gonna read you what this person is saying, that CPAs are saying.
1:47
So he’s got two comments or two questions regarding staking.
1:52
I setups.
1:54
Spinnaker Wind Ventures, OK, with, with, like, OK, so he set up an LLC last year, OK, and he’s holding is Kryptos and offline wallets.
2:04
So It’s not necessary to use an LLC yet without offline wallets, it’s good when you’re working with third parties, because any, 10, 90, nine’s would come from third parties like Coinbase, not your, you know, whatever, whatever, offline like your ledger obviously.
2:18
He says many of my kryptos are also staking in those wallets.
2:24
He’s not going to get a 1099, but he says, I’ve heard from CPA’s, that staking rewards should be treated as ordinary income.
2:35
No, they could be treated as ordinary income.
2:39
But your income is not going to be in gold coins or medallions or shells, or cryptographic coins.
2:48
OK, that is not income if you say it is, than it will be.
2:53
So, I would change the word should too could Not necessary he says, but since I have the tax immunity trust.
3:00
and I’ll explain about that, he’s talking about the LLC and the LLC that I recommend. And, I know a lot of people refer to it as a trust insurer.
3:09
It operates like a trust, but I just really like to call it an LLC.
3:13
There are some components of it that are like a trust. OK, I’m not trying to be confusing. I hope I’m not, but it is, in fact, an LLC, it is the account holder. It is a limited liability company.
3:27
It is written so that any tax liability can be deferred in a way that you want.
3:34
So, yeah, I guess you can call it a tax immunity trust if you want.
3:38
He’s asking, does this shield the rewards from any sort of income tax?
3:42
OK, so, let’s just say, I’m an imagined that rewards means from staking, he’s getting a return. So, let’s say if I’m staking litecoin, I know I’m speaking out of school here. But if I’m sticking litecoin, and I put in one litecoin, and that’s worth 1.7 litecoin later, that is not profit.
3:58
That is not taxable income.
4:01
If I measured in dollars, it’s still not taxable income. If I sell it for dollars, OK, now we’re talking.
4:09
OK, if I do it in my name, that way.
4:14
The CPA’s telling you to account for it as if it’s paid in dollars. That’s your problem, if you want to do it that way.
4:22
It is not required, I’m sorry, CPA’s, but you tell me, when I’m required to count an asset, and measured in Dollars, then report it as if I received the dollars.
4:34
If I’m not used accrual based accounting, somebody tell me that You guys need to go back to school.
4:43
So let’s just take the responsibility, OK, those of you like me, who are Investors and Kryptos Let’s think for ourselves and stopped following CPA’s on the Internet, OK, Who knows? who’s writing this stuff? It’s probably IRS agents or somebody Alright, so he’s asking Do I need to file anything no.
5:02
I currently have not filed an reports for the company.
5:08
I Understand that. It’s not required. Do the tax trust, OK, fine. That is correct.
5:12
If the LLC that I’ve written up for that purpose, and by the way, this whole thing is about your accounting practice, So if you do it in a CPA, says you will do, you will follow an accounting practice that will lead the LLC into a tax liability. There’s nothing wrong with that. It just costs you more money, and it’s unnecessary.
5:29
You can use your LLC as a pastor.
5:32
What that means is it is that money is considered to still be in transit, has not reached a destination where a taxpayer has to account for it.
5:42
So even though it gets paid to the LLC, and even though the LLC has an EIN, and even though it gets a 1099, that does not create a situation where the IRS has to reconcile anything.
5:53
There’s nothing to do.
5:57
So, I hope that answers the question. Stop.