U45 – Discussion on IRS Revenue Ruling 2019-24 as it pertains to virtual currency 0:02 Great, so I’ll just say, again, the dates August 12th. We’re going to talk about an IRS revenue ruling. 0:07 This is the one that follows the 1 from 20 14 where the iris defined cryptographic currency or v…

U45 – Discussion on IRS Revenue Ruling 2019-24 as it pertains to virtual currency
Great, so I’ll just say, again, the dates August 12th. We’re going to talk about an IRS revenue ruling.
This is the one that follows the 1 from 20 14 where the iris defined cryptographic currency or virtual currency as property.
And there may be another one after this, This is from 2019. You can tell because the revenue ruling is 2019, 24.
So if you want to look it up, it’s here, but I’m just gonna walk through it, and I have some references, some web pages up here where I pulled the actual citations from some parts of this ruling, this is not a law, by the way.
It’s more like guidance. It has weight, like if you have a dispute in tax court, it would be used that way.
But I’m going to show you how this, how this plays out, how this breaks down that, is so, I’m going to share the screen here.
We’re gonna move on over there, my, my other monitors over this way.
So, but anyways, as you can see, just find this here.
It’s on the irises website and then we can just scroll down, section 61 talks about gross income. You guys can find this in title 26 of the United States Code, not the CFR.
OK, the CFR is the reg written by the Agency, which that’s very helpful, but I’m just speaking generally here.
Uh, Section 61 of the Internal Revenue Code is implemented by 26 CFR, 1.61 dash 1, and defining gross income.
So gross income is really detailed, in this are in this regulation.
It’s interesting, I don’t think income as defined in the actual tax code.
So we’re trying to figure out OK, that the ruling pertains to whether or not a taxpayer has gross income OK under this section.
Now I may read sections of this. I’m sorry for that, but I don’t know any other way to do this, so it’s, ask it, as a taxpayer, have gross income under section 61 of the Internal Revenue Code.
As a result of a hard fork of cryptocurrency, the taxpayer owns, if the taxpayer does not receive units of new currency, I’m just talking about John Smith, that has Kryptos.
Now, this does cover every ownership of kryptos, that is, the person owning the private keys and so I’m talking about this covers ledger’s. This covers everything. Paper, wallets.
Third parties, Coinbase, all this stuff.
It even color covers Caleb and Brown, But what happens in the middle of that is in-between is that there’s some reporting things that like on a ledger. There’s no reporting, it’s not third party right now. It’s gonna give you 1099 on … Brown, no reporting on that, and I’m sure from Australia, OK.
So, it’s not totally what you’re saying here.
Then, here’s the other question.
Does a taxpayer have gross income under section 61 as a result of an airdrop of a new cryptocurrency following a hard fork? If the taxpayer receives units of new cryptocurrency, this is where people having a problem.
If you get new currency, that’s worth more.
I think this goes along with, if your currency is worth more, right from what it was. So the background is that virtual currency is a digital representation of value, OK? On a blockchain, they go into this, defining things, OK?
So what they’re saying here, though, is the foreign currency. They’re telling you what it is. It’s defined as designed, as legal tender, it’s intended to be legal tender that circulates and so forth, OK. Nothing new here.
They’re not talking about kryptos yet, kryptos are not foreign currency.
Cryptocurrency is a type of virtual currency that utilizes crypto cryptography to secure transactions, et cetera. We all know what that is.
OK, so a hard fork is unique to distributed.
It is unique to distributed ledger technology and occurs when a cryptocurrency on a distributed ledger.
Undergoes a protocol change resulting in a permanent diversion from the legacy or existing distributed ledger. You guys know what that is.
Hard fork may result in a creation of new currency on a distributed ledger.
OK, following a hard fork transactions involving the new cryptocurrency are recorded on the new ledger, OK, So, an airdrop is a means of distributing your currency, OK, cryptocurrency from an airdropped generally has received on the date.
At the time, it is recorded on the distributed ledger.
The taxpayer may constructively receive cryptocurrency prior to the airdropped being recorded on the distributed ledger.
A taxpayer does not have receipt of the currency when the airdrop is recorded on the distributed ledger.
If the taxpayer is not able to exercise dominion or end control over the cryptocurrency, no problem there, right?
No disposition of assets and no right to sell anything.
Nothing new.
For example, the taxpayer does not have the Dominion or Dominican, and control.
Or if the address to which the cryptocurrencies airdrop is contained in a wallet managed through A cryptocurrency exchange, and the cryptocurrency exchange does not support a newly created cryptocurrencies such that the airdrop Kurt cryptocurrency is not merely credited to the taxpayers account at the exchange.
If the taxpayer later acquires the ability to transfer sell exchange, remember this goes along with what I’ve been telling you for years.
When you have the right to spend or sell dollars, OK, then you have a liability. If you receive that right, you then may have a liability.
So, it’s saying here if the taxpayer, later acquires the ability to sell or transfer exchange, or otherwise dispose of the cryptocurrency, the taxpayer is treated as receiving the cryptocurrency at that time, OK? No problem there, this is all. I mean, I’m going to argue with this step. This is all correct.
But I’m gonna explain a couple of things to you.
So they’ve got two situations here. This is the one that y’all are concerned about.
If I get new coins or the coins go up in value, Do I have a taxable transaction? Here’s what it’s saying after the airdrop. Transactions involving kryptos are recorded on the new ledger, and that transaction is evolving.
Crypto are, or continue to be recorded, OK, so, yeah.
So, here’s the law, Here’s the thing, Section 61 A 3 provides that, except as otherwise provided by law.
Gross income means all income from whatever source derived, including gains from dealings now, I don’t believe you’re going to find this language in the actual tax code.
I think this is just in the letter ruling, it has weight, but it’s not law.
But let’s pretend it is. All right.
So including gains from dealings in property, what’s property cryptographic currency in this case.
Under section 61, all gains or undeniable, or undeniable accessions to well Yeah, my coins are worth more, Clearly realized over which the taxpayer has complete dominion, are included in gross income.
Now, it’s telling you to refer to this case.
So let’s do that.
It just so happens to be right here.
What’s interesting that you’ll feel note right away, I think. Let’s see here.
OK, so they cite it correctly.
OK, so, Commissioner versus lunch, ah, glass company, So I got the citation.
Make sure I got the right one, OK.
So it’s this is apparently disgust in this case.
So let’s look at the case money received as exemplary damages for fraud. Whereas the punitive two thirds portion of a treble damage, antitrust recovery, must be reported by a taxpayer as gross income under Section 22 A.
Now, that’s talking about the Internal Revenue Code of 1939.
All they did is they revise some of this stuff in 19 54, and they did it again in 19 86.
Just just worth noting in determining what constitutes gross income as defined at 22 A, which is probably today 61, effect must be given to the catch all language gains or profits and income derived from any source of water.
So they have an … versus Mccumber, or a lot of you guys have read this, I’m not going to go into that too much.
The mere fact that such payments are extracted from the wrongdoers as punishment for a lawful for unlawful conduct cannot detract from their character as taxable income.
A different result is not required by the fact that Section 22 was re-enacts without change.
After the Board of Tax Appeals had held punitive damages to be non taxable, and there’s another citation.
Now, this nice citation, I think Heiland Farms is from Tax Court, I think, but remember, this is talking about a damaged claim for fraud. Someone got an award of punitive damages, OK?
And the Iris or the court here The Supreme Court is saying this. Wow, OK.
So the Supreme Court ruled that it’s taxable and it’s still is, I think the Legislative History of the Internal Revenue Code of 1954 does not require a different result there.
You go see, the definition of gross income was simplified but no effect upon its present, broad scope was intended OK, so it didn’t change anything, Punitive damages cannot be classified as gifts, nor do they come under any other exemption in the code, fine.
So whatever they did here, they fixed it, reversed it.
Punitive damages cannot be classified as gifts. That means they’re taxable.
So we come back here. So this case pertains to punitive damages.
Does it apply to anything else, punitive damages?
It’s, I think it’s maybe maybe it’s not a holding.
But let’s just say it is, I’m not going to argue.
Let’s just say that this case vol applies like they’re saying.
Technically, I don’t think it does.
But anyways, in general, income as ordinary, unless it is, again, it is gained from the sale or exchange of a capital asset or a special rule applies. All right. So, this is what we’re concerned about, the sale or exchange of a capital asset.
Now, I explained this, we already know about sale, income is ordinary, unless it’s a gain from the sale or exchange of a capitalist.
So, if you sell a capital asset, it’s not, it’s, it’s not ordinary.
But, it may be taxable, OK, same with an exchange of a capital asset.
Now, I believe that the coins are a capital asset, I’m not sure, but let’s just say they are.
Then we start talking about special rules.
Now, this is, I’m not trying to get into the actual meaning of the code. We’re gonna see that, but what I want to show you is how they’re how they’re doing this. So look at.
We’re looking here at these sections, OK?
Here’s 12 22, Title 26, and their defining.
This is all definitions, OK?
This is the end of the section.
There’s like 10 paragraphs and paragraphs.
So what is short-term capital gain?
What does loss gain loss, Right? What is it, what is it, what is it?
Means the excess long term capital gains for the taxable year. I’m just, I’ll just pick one at random. I pick number seven.
Net, short-term capitalize the term short term capitalize, means the excess of short term, short term capital losses for the taxable year.
Capital gain net income means the excess of the gains from sales or exchanges of capital assets over the losses from such salzer exchanges.
Now, remember, I mentioned many, many times, if you have a tax liability from an exchange, from, let’s say, coin to coin, however that arrives, how do you pay the tax? It is not in the coin.
So, are you required to sell for the thing that’s being taxed?
I don’t know of any law that is so far.
I can conclude that there’s not, there’s no duty to sell the capital asset for dollars so they can pay a tax in dollars. I don’t know that that exists.
Again, I believe that it is the dollars that are being taxed. Why?
Because the system created it the tax pay, the tax authority, Which is includes if the reserve bank, the tax authority created the unit of currency that is being taxed.
Bitcoin and other coins are not that.
So just understand that part of it.
But I’m going to show you that.
You’ll see what I’m getting to in a second here.
Same old stuff, They’re just defining this stuff, OK.
There’s nothing interesting here, really, just, it’s worth noting, so we get to 12 31.
Remember, let’s go to 12 31 now. It’s so tedious We just have to do it, though.
What does the gain means?
Any recognized gain on the sale or exchange a property used in the trade or business?
Hold that thought about trade or business for a second. Any recognized gain for the compulsory or involuntary conversion?
So if you’re forced to sell something, right, As a result of destruction in whole, or part of theft, or seizure of an of an exercise, or an exercise of the power of requisition, or condemnation, or the threat, or eminence, they’re up into other property or money of property used in the trader business, or any capital asset, which is held for more than one year, OK.
More of the same.
This is kinda telling you how to how to do your accounting.
If there’s something to report.
Involuntary conversion, shipwrecked, things like that, the property used in a trader business. So all this section here has to do with the trader business.
Now, you can look up case on this, I’m just going to show you the definition of this, I’m gonna get the definition of the tax code. in just a second.
I’m gonna show you any capital asset, which is held for more than one year, and has held in connection with the trade or business, or a transaction entered into for-profit.
This actually should not apply such conversion.
If, during the taxable year, the recognized losses for such conversions exceed the recognized gains for such conversions, OK?
Definition of property is using that trade or business.
Property using a trader business character, which is subject to the allowance of depreciation provided in Section 167, held more than one year.
Trade or business held more than one year.
Then it goes on to tell you what it’s not.
This is how they talk, this is how they write stuff.
Here we’re talking about timber coal, domestic iron ore. we’re talking about livestock, unharvested crop.
It’s kind of more of the same Nothing interesting except one thing.
What is this trade or business? What the heck is that?
Well, if you look in 77.1 of the tax code, it will tell you, Let’s go there. I just so happen to have it sitting out here.
What is a trade or business? Section 70 71.
Title 26. Scroll down to paragraph 26.
What is it a trade or business includes?
It doesn’t say includes, but is not limited to?
It includes the performance of the functions of a public office.
That is not your Wal-Mart. That is not your mailbox place.
It’s not your small business. It’s a public office. What’s that elected official?
Are you saying that a trader business is exactly, the people that are writing all these laws, the congressmen, those people are involved in their trade or business.
I’m not because I have a long landscaping business.
Well, according to this, you’re not.
So there’s more to learn on this, but I’m just saying it’s interesting.
Let’s go back to 12 34 A. Now that was the next statute referred in this letter. Ruling.
Gains or loss from certain determinations, I’m glad these things are short gains or loss attributable to cancelation lapse expression or the termination of the writer obligation and other securities futures contracts is defined at 12 34 B. I’m not going to go there.
Will respect the two with respect to property, which is around an acquisition? Would be a capital asset in the hands of a taxpayer or a section 12, 66, 12, 56, contract?
I got that here as defined in 12 86, Which is a capital asset in the hands of the taxpayer.
What the heck is a 12? That is a contract.
We’ll go over there.
At the close of textbook shall be treated as sold.
Shall be treated as sold. This is what they’re doing, guys.
You can certainly treat yours as being sold.
That’s a different accounting practice than what we normally do when we follow 10 40.
I’m going to show you right now for its fair market value.
Now, let us go back here, to the literally.
So, we get into all this stuff. We can look it all up.
Pardon me for just a second. I want to make sure I get the right section here.
Section 451 of the code I didn’t have that went up here, I don’t think we need to, but it provides that a taxpayer using a cash method of accounting includes an amount and gross income in the taxable year.
It is actually or constructively received, so I’ve been telling you all OK, this is if there’s a disposition of the capital asset for dollars, the thing being taxed.
What you all are reading on the Internet, and your CPA is following this.
A taxpayer using an accrual method of accounting generally includes an amount and gross income no later.
Then the taxable year in which the events have occurred, which fixed the right to receive such amount.
OK, so if I’m using accrual based accounting, which is what large corporations do, I can do it.
I’m not a large corporation, but I can use it if I want. That just means that I’m taxed on the value of a thing.
For example, let’s say in December, I have a business that uses accrual based accounting.
And in December I take on a new project where my customer or client agrees to pay me so many dollars per month over the next 36 months.
And I take that contract now and that contract shows up on my accounting records, it has to, and I’m going to be taxed on that income now, and I won’t receive it for three years.
This is not what we’re needing to be doing with kryptos.
So, there’s more information here, ameen, you can see for yourself.
This is very consistent with what I’ve been telling you all, and it’s, it’s, there’s nothing wrong with this.
It’s just have to understand where there’s a tax liability, the tax liability really does come from when you file a return.
Now, if you’ve already filed 1040, there’s a presumption that every year you, oh, now there are ways to stop that presumption. I’m not gonna get into that, and I don’t care about that. I’m just saying, if you guys are managing Kryptos, you understand everything I’ve been telling you is based upon these rules.
I didn’t, I didn’t even actually read this stuff until recently, I didn’t even care what this says, because I know they’re very specific and very concise, OK?
Nothing is going to change until you do something like El Salvador. Didn’t say the government says, Hey, everybody. Bitcoin is now legal tender.
Well, that just means it just becomes more, it just becomes currency.
So, if that were to happen with a particular crypto coin, then I would look at it just like the US Dollar and the same rules apply.
So, if I don’t want to be taxed and I wouldn’t use that coin, just like I wouldn’t use the dollar in that case, right? So.
Let me see if there’s any comments here.
Freedom law, I’m glad you brought that up, and it’s probably not a good idea to promote other things, although I’m all for it. I mean, you guys should learn as much as possible.
However, Freedom Law. I like pay money, he’s a nice guy. He’s a smart guy, he’s really smart. In fact, he probably knows more way more than me about the tax code.
He doesn’t understand how simple this stuff is. You do not need to file lots of papers and pay tens of thousands of dollars to learn a bunch of stuff about the tax code. If you want to emancipate yourself from that system.
That’s what he’s all about.
I don’t care about all that. What I care about is managing risk.
If there is a tax liability that I can easily avoid in the course of just doing my normal thing, I’m going to do it and I’ll show you how to do it. I don’t need lots of paperwork for that. I have to document what I’m doing and change my property rights.
That’s it.
Then follow certain accounting practices. I don’t have to send a bunch documents. That’s what … wants to talk about. If you guys want to do that, knock yourself out.
It’s completely, no, I would say, it’s good to learn, but it is not going to help you avoid taxes.
It’s going to send you on to a path of paperwork and paperwork is just a mess.
I’ve been I’ve been telling him that for years, so he knows, he knows he was on this call, he’d say yeah.
I met him in 2001.
Well, I think we’re in Cancun.
Yeah. Cracking the code. You know, I’ve talked to so many people now, I have heard testimonials.
I have heard of people of people that did Piet Hendrickson filing, and maybe it’s technically correct.
But what happens is, the iris eventually Issues of frivolous return penalty, unless you refile and ask for, you know, some sort of gift from the IRS, which you can, there’s a form for this.
You can get out of that situation sometimes, but Peet Hendrickson should stop promoting these ideas, because it’s just penalizing people and it’s useless. You don’t need to do all that garbage, just like you don’t have to move to Puerto Rico to avoid taxes.
You don’t need to do all this stuff. Pete Henrikson, pay him on, freedom, law, all that stuff.
They just wasting your time, you’re wasting your money.
Life is simple when you guys talk to me, I’m like, do you, If you listen to my free consultation call, that is as simple as it is. You simply change your property rights. You recognize what the accounting practices are, what the differences are, and realize when you have a game and simply avoid it.
It’s that easy.
Alright, and the sites again.
Thanks for that question. …
dot com: Ace of coins, plural dot com that is going to have I helpdesk on there.
for the first time ever, I’ve never done it that way. It’s got to be a phone number, a ticketing system, and a chat window.
Now, the people that are there, it’s a couple of people right now.
They can pretty much do anything, and they can answer a wide range of questions. They’re not experts like me, or maybe they’re about to be experts like me, it’s going to take, I give it a few years, but, some of them have been doing this for awhile, OK, Their clients, they’re people that are pro what we’re doing, they’re eager to help everyone who’s new. So, you’re gonna get really good people that care. They’ve been through it. They understand what I’m doing, their clients and, you know, experience and stuff like that.
If you need to reach me, that is the place to go. You can reach me through the helpdesk. That is not yet available.
And there are going to be criteria on next it’s it’s going to be overwhelming.
I know that helpdesk is also going to have resources that you can get information quickly. So, that way, you don’t have to wait but you can’t talk to a real person. That’s my intent there.
All right, so, if you want me to, I’ll just put them in here, but.
So, and then privacy, fight, of course, privacy, fight dot IO.
And then if you go to YouTube.
OK, that’s my channel on YouTube Now, I’m sorry about last.
Last week, I, I recorded the video and everything, and I had to edit a little bit of, it, took me awhile, and then I have a problem uploading it, so I can give you guys the link, so I’m working on as fast as I can, I’ll have that up there, didn’t forget about y’all this call as well, that may take me some time and might be faster with this call.
So, I’m changing how I’m doing those things, so appreciate your patience on that.
But anyways, um, I hope that mmm hmm helps you sleep better at night, tobey, afraid of the tax person. You don’t need a bunch of documents. You’ll need to prove anything. You don’t need to argue, just do things a little bit differently, and I can tell you firsthand.
I’m not saying you should do what I do.
I’m just saying, I have not filed a tax return since 19 93.
I don’t have a problem with the IRS. I don’t owe the IRS any money. The IRS has not asked me for any money. Doesn’t expect anything from me.
I live my life in a way that I don’t need to, I use money in a way that benefits my family, but does not do it by creating a tax situation.
Now, if I were to go work at a job, site, a W four, I get big problems with the IRS because they’d say, Hey, where have you been, right?
Even though I don’t owe anything, that’s just what they do, and they will probably come up with some sort of bill, they would say, Hey, you haven’t filed for what I guess it’s almost like 30 years now. You haven’t filed, So you’re gonna have to do all these things, and here’s the bill, or they’ll create all these fake returns for me. They’ll do a return for me, if that’s if, I did something like that. So, when I stopped filing in 19 93, that was the last year I filed. I decided I was not going to associate my SSN my name with.
So that excludes me from being able to get a W four type job, which kinda makes me work harder and be smarter, right?
So, that’s a chosen lifestyle I’ve had. I don’t use an SSN for my credit. So, I have a different way of doing things.
I carry my own car insurance as my company that insures my car. So, I do things slightly differently. My children were born without birth certificates or SSNs, to this day. They don’t have SSNs. I don’t think they ever will.
They don’t have a need to do that.
They have credit. My older one has credit. So, no big deal there.
So, anyways, you’re talking to a different person. In fact, I’m not even a US citizen. I’m an American national that really doesn’t matter anyways, because I just became an American national in 20 19. So, again, changing your nationality does not change your tax situation.
I mean, it’s not.
don’t do that for that reason.
OK, being American national might do that. I wouldn’t Bank on it. Yeah, you can go to Puerto Rico, fine. That’s a lot of trouble. I would just go there. Really for being in Puerto Rico. You know, the beaches and boats and things like that.
Anyways, that’s enough of that, like always, I want to do Q&A or 30 minutes into it.
Let me know if I missed something.
All right. I’m looking here. So if you guys want to ask me something, now’s the time. And it can, OK.
So David’s there was the first one, and all right.
David, what he got, John. All right.
So I’m dealing with an exchange outside of America.
Gotta move my crypto.
Would it be better for me to move it not directly to the LLC? Let’s say coin I’m on Coinbase just move it into a wallet.
And then from the my wallet into the Exchange It’s not going to matter just a matter of wallet now. I would I would move from wall to wall so I wouldn’t wire the money. Alright, well.
it’s much easier yeah, OK.
Um second thing if I could ask if I could ask why what’s the strategy there?
So why I’ve had a I’ve had a I was thinking might fall under the money laundering thing that they’re coming up with.
Because I’m on like, uh, Hong Kong exchanges from way back, when they first opened up, some like, grandfathered in anyways, I’ve been using a VPN because I had two nowadays.
But, but I was thinking, if there’s some kind of issue, if I went from like, they exchange in Hong Kong, right to Coinbase over here to the LLC and they’ll sale like some kind of monday, Monday Moneyline, Yeah.
No, no, sorry. It’s kinda cool. They have Hong Kong, and they’re Not reporting or something, right. They’re not reporting right, right. That’s exactly. They’re not OK.
Alright, thanks.
Was one of the things in the The, and actually to others, the W nine, for the LLC, just put the signature authorize signatory?
Exactly. Yeah, good stuff.
A title, just just don’t even put my name.
OK, and then, um, one other thing, OK, So I have a question from an exchange.
I’m also opening up from Gemini, and I’ll just put it in the chat. This is the question, and I’m not sure how I should respond to that. That’s great if you guys wanna post him here, and I can address them because that will help a lot of people.
Yeah. You kind of have to be created with some of this stuff and that’s why, I know it’s a, it’s a, it’s a nuisance to have to answer it.
But if you don’t, then I can open the account so that’s why I have kind of a backstory.
And if they asked me a question like, Can I have your organizational chart?
I said, What’s wrong with you knuckle head on one guy? And I just opened this company. right? Right. Right, or if they say, What about your utility bill?
I see a lot of people go, Wow, I’m supposed to have that, And I say, What are you talking about? I pay the utility bill, Why does my company, I just set up, It’s done with something else. Yeah, yeah. Yeah, And they access that, just keep it simple. Yeah. Don’t have too much. it from a never, again to have an organizational chart, I’ll let you know.
There we go.
All right, so what, I can chat here. Source. Oh, yeah, the source of wealth.
OK, so, source of wealth.
That is my hard earned savings and the money from my job if I have any leftover before I pay these.
Yes. Yeah, right. OK. I mean that’s that’s the kind of That is the person who’s opening accounts at Gemini so. Yes, your exact demographic. You’re saving your money and you’re buying kryptos, because your Uncle Bob said. It’s a great idea.
Beautiful, but what you want to avoid is that you want to avoid something like a complex answer like I sold my company and Something else, You don’t want to get into all that stuff because I’m going to say, oh, your company, you know, right, It just leads to more questions.
Beautiful. Yeah, what else we got here? And the background source of wealth.
When you say employment income, that’s the background significant amount whether it was raised. OK, employment or inheritance.
I would say to you, even if it was inheritance unless it’s like a million dollars, no, you just gotta open your account.
Open your account with what you call employment income.
If you’re sitting there with a million dollar inheritance, you tell them, I’m opening the account with my employment income. Here’s, you know, $20,000 or whatever on my savings.
Once your account gets opened, now move this money in, right?
Right? Tell him the least.
And employee.
OK, so providing a resume or brief employment history can help That’s nuts.
I’m sorry, I don’t have a resume, but I do work for so and so or I, you know I do have I do have a job.
That’s the best I can tell you and just, yeah, give it OK, Now What? I will just you know war gaming this if they come back to that, OK.
Can you provide a check, whatever the, you know, your check stubs worse did this? I don’t know, but I heard one guy on YouTube saying Oh, you should just, you know, submit that so you just get over it.
Get past them, but I was like, but he was dealing with people with an IRA That are, OK. And I, we’re not putting in an IRA, so it’s like, no. right, I haven’t heard that too much.
I mean, I mean, there’s no problem with doing that.
I just really hate that like, I would respond by saying, Why do you think I’m lying?
I mean, Really?
Yeah, You really, I mean, we’re about to have a business relationship. It might turn into millions of dollars, and you’re already not trusting me?
I’m lying and no?
Are you collecting this record for someone else? Millimeter, hm?
What security measures do you have if I give you this because my CPA. I asked him for it. Here’s what you do.
I asked my CPA for that and he said, Are you sure these people are legit? What kind of security do they have on their document retention policy?
So that way, it’s not you asking.
OK, this may be, I always blame it on the CPA.
He told me. Yeah. All right. What you want to avoid is indicating implying in any way, or saying outright, that the money you have in there is from each member of your family because they’re afraid of Caribbean. Yes.
That’s bad because now you get into money transmitter type situation that requires licensing because it’s not your money or they don’t indicate at all that you’re raising money or that you’re, you’re a money transmitter, or that you’re a fund manager. Or, you know, this is just my personal savings. And I’m the only one doing this stuff. I have 100% of the interest. Yeah?
The PMA and all that stuff that I have you guys set up and it doesn’t. That doesn’t affect any of that stuff So, right?
Alright, OK. Anything else on the Yeah, anything else on this type of question? Do you have any more?
At this, I do, but I love getting lost my notes, John. So next up. Let me know.
On the on the PMA and credit unions, you know, a lot of The banks don’t like this because they can’t They can’t see. They don’t see it as a liability for a human being.
They see it as a way a human being can can get out of liability.
I mean, it sounds sinister but really, the banks are actually, they, they are set up along with attorneys in CPS to expose you to liability by default.
Mean, if you go pull a standard contract, it, Legal Zoom and an Operating Agreement and Legal Zoom or one of these places, you’re going to find all the references to the Treasury regs and taxes and attorney fees. That’s all it’s about.
Would you look at my documents thereabout, protecting your interests, your powerful, yeah, as I was reading through them, very powerful, and that, my bank did that right now. They were like, OK.
Can you send something? They got all confused. I said, just look at the abstract. It’s all in the abstract, like you tell me they just have to find a new bank guides.
That’s why I say Bulletproof, because if if I disappeared and no one else could help you, and then, or maybe you decided to give up your operating agreement or you got it subject to a subpoena or something like that, you could give it up.
Don’t, but you could, and it would still not help the other person.
There was a situation like what they try to do is when they ask you for it, it’s what they’re trying to do is see if it’s written in a way that you have the personal life personal benefit in the operating agreement. That’s what they’re looking for so they can say, ah, ha, we can pierce the LLC and make that guy, the 1099 recipient. I’ve had lots of situations like that with clients. And we always get out of it without giving up the operating agreement. But just the same it’s like a double protection if you ended up giving it. It’s still not going to help them.
Thank you, Jim. Alright, so I’m gonna. I’m gonna back up to. there’s a question. I like all these questions here, let me back up because I don’t want to miss.
Um, if someone wants me go to the Blockchain trust, OK. The concept is this. Now it is in my video, OK, guys. I’m gonna attach a file, Can I do that here?
I’m gonna attach a file, I can think of, OK, here we go.
If you’ll just bear with me.
I’m sorry, I’m just.
Or I’m gonna say. I think I made it available. OK this file links to three videos.
I did three videos on this concept of the blockchain and why the exchanges Are not changing ownership because I’ll just summarize it because The exchanges are the owner of the coins and When you’re trading coins between coins and coins all you’re doing is trading beneficial interests and the coins the exchange retains ownership all the way so that makes the exchange the trustee.
In fact, it makes the account holder the beneficiary so that’s the scoop on that so there is no trading of coins for coins or someone else’s coins.
Like the IRS wants to see.
Because of the technology, all right?
That’s for the newcomers if that helps. Now newcomers I’m sorry if I if I can’t find it. or maybe I can find it this way, OK. Send file, OK, hit here. Let me do this, if I can.
model through my computer here, and I’m going to look for this.
The coin file, that’s what I just did the other day.
I’m gonna leave it as it was May answer May, and Then This Should, this should give you the link, this will give you the link.
OK, it’s a different folder Get back one.
OK, it’s really important this is going to summarize everything for you.
Now I have a lot of other material on the tax issue, but this may really get you right to the punchline here.
So, here we go.
This is a PDF file.
And you’re getting it right here in the chat window.
There’s 3, 3 video links in there.
There’s a short video and there’s a couple of months.
So that should answer all the questions for the newcomers regarding the exchanges and the blockchain trust.
Part of the term I use is for marketing, but really I wanted people to understand just by looking at my offer that there’s something else going on with these exchanges, so it is a trust relationship Sorry, John, nothing on the chat.
I can see anything on the chat OK, it takes a second to load.
Neither does it just popped up You see it.
OK, Well, I will put it on the ace of coins, all right, on the telegram?
Want you guys to see, I thought I saw on the chat Oh cool, alright, I’ll put on both any might have to go. you might be using it to everybody raises one person.
Oh, I don’t know, let me, let me put it on telegram just to be sure.
This, this XOOM thing is not that useful, helpful.
It’s really worth it to go over this.
This is, I’m showing you how to actually calculate gross income tax, OK, because sometimes, you will have to report some money, and then you gotta figure out how to do your cost basis.
So anyways, it’s on Telegram and the ace of coins, and then maybe I’ll just, I don’t know how I put it here, but anyways, I’m gonna, because I hope that helps you out.
Background source, OK. Backup.
Additional background, OK.
All right. Now on kilobit brown, the documents I give you are for them. I mean, when they get them, they’re just, they never, they are the easiest ones to open up. I wish everybody would. Use Caliber Brown.
Yeah, so, in fact, there was one change I had to make in the documents for Kilbane Brown, which is in all the documents. So now, when I use my standard documents, you’re gonna get your account open very easily.
Suggest steering away from credit unions? Yes, sometimes the credit unions, they don’t like …, because, you know, like I said, they’re trying to create liability, and they just see that someone, they want to see a human being as the owner of the LLC, because they’re so used to seeing it, and that’s why. That’s why I put that BSA compliance memo.
I don’t know. Sometimes they just don’t care, right?
And yeah, credit unions, maybe you have to avoid them.
State banks, it’s hit or miss with those guys, the NAs, the big ones that Wells Fargo, Bank of America, those seem to be pretty good.
So yeah, it’s kind of like a shopping game there. Could you kind of go over the blockchain trust concept? All right, so that was the idea there.
I just sent you the article two questions about trust when I applied for EIN. I’ve not put the trust word at the end, OK.
So, let’s be clear, is it a trust document, or is it the LLC? Those two different things. When I write an LLC, it is an LLC.
It is not a trust, even though there’s a PMA that owns it, maybe, or even though there’s a trust that might own it, it is an LLC.
So, as long as the EIN is issued to the name of the LLC on the approval letter, with comma, LLC, or with space, LLC, there’s no comment there on the approval letter.
As long as the LLC designation is on the name of your company, and there’s an EIN Assigned, you’re in good shape, It doesn’t matter how you got there.
Because your EIN application and the information you disclose is not binding on the company or anyone. That means that. You can change it anytime you want, and it’s not really public record.
Your articles are the only thing that make a difference.
So open an account to different banks and seminar reporting to have trust or LLC at the end of your applications.
Yeah, if you’re using an LLC, or if you’re using a trust, make sure that’s designated because otherwise it’ll be considered a sole proprietor or an alter ego, or a DBA that is so important.
It means everything to have an LLC designation, PMA designation now, PMA. I don’t recommend those for doing everything like the LLC does.
You can I just don’t like it. You run into problems. It can certainly be done.
I don’t wanna have problems with my clients I already have enough, right? So I make it as smooth as possible.
So my recommendation is the PMA. If that’s what you’re going to use, is the owner of the LLC and that’s all it does.
Special purpose that’s all it does.
Yeah, you can, yeah, you can use, All right, so I use only, right, you could do that, you could use your name for the name of the trust, no problem.
You can use any name really, and then make sure the beneficiary is different.
Someone said, I use my name for the trust, the successor trustee and beneficiary, OK, that’s not trust that.
So if your name, and that’s one of the tests I ask clients, if he’s coming to me, someone’s coming to you with the trust, I want to make sure it’s really a trust.
So, there has to be a trustee and a different beneficiary, and not a company that the trustee owns, it has to be, you, really, a new person, OK? That’s the best way.
All right? You could have problems, if somebody exam is that if someone wants to test the, test, the validity of your trust, or, you know, what’s, what’s really the hard thing to do, want to trust this. Why don’t like to use them for the rest of the world.
I like to use them for privately owned things or owning my vehicle stuff that, you know, I don’t want to if I, if I own my vehicle with a trust, I know that’s all I’m going to do with it. If I try to get into a business with a trust, I’m gonna end into all kinds of things. I’m gonna get into equipment leasing, lease agreements, all this stuff, and then, I don’t want my trust tied up and all that, I want to use an LLC, and my trust be the owner.
So the worst situation is, if someone tries to make a claim against you and then uses the name of your trust and claims that your alter Ego is your DBA, you got, big problems that, because now it shifts the burden of proof on you.
It’s in most most forums, so be careful about that.
Right, And a good place for beginners to learn, getting started kryptos, OK, if you want to just start with kryptos, this is how I did it. This is how I still recommend it, Go on.
YouTube, or anywhere on the internet, but YouTube.
YouTube has the oldest content and the most diverse content on, beginning with Kryptos, search on phrases like Bitcoin 101, Bitcoin for Beginners, OK, things like that, and just get all the content and just binge watch it, you know, set aside time, I listen to it on two speed or something like that. And that’s what I recommend.
And then when you’re comfortable, open up a wallet like a blockchain dot info and put some coins in there.
Now you might have to go buy some coins from somewhere, maybe your local Bitcoin Exchange, or maybe after. I wouldn’t say go open up an account at Coinbase right away.
You could, That’s kind of an intimidating experience. It’s probably easier with blockchain dot info. In fact, you could probably just call up a friend and say, Hey, if you’ve got some Bitcoin, can it give you some cash?
And just send me some Bitcoin to my wallet, I’ve done that before, just to get people started. So that would be what I’d recommend.
All right. Kim Brown, yep, OK, open a blockchain trust with the credit union, OK. Good.
Alright. And the liabilities, as you always have labeled everybody has liability issues with the blockchain trust, the way I set up the LLC.
With a credit, you have a credit union account, and there’s a single member, OK. The trust is the single member, LLC, if I understand you correctly here. Do you have liability issues, OK? You asked me too difficult, you’re saying two different things. Yeah.
You’re you’re a signer of an LLC and a bank account, OK?
As the seiner There, the property and the account is not connected to your personal liability. You can have all kinds of personal liability. I don’t know what that is. But that is severed because of the way we’ve written this yellow sea as the account holder.
And you’re not the owner of it.
So I guess there’s no connection there if that answers your question.
All right. And then has Quen, Coinbase is always asked 100 word description of my business.
Hundred word description, I haven’t heard that one yet.
More or less they have though.
Um, yeah, wait, OK, so what you tell him is, kind of what we put in the articles. So in the articles I put, this company is organized for all lawful purposes.
Including, but not limited to investing in real estate, and occasionally, staging. Real estate for this for resale.
Or, the management of property and on occasion may acquire or sell real estate, um, tax liens.
OK, how many words is that?
I don’t know, maybe it’s not a 100 but I think that would be enough to give them the information and it’s totally BS But it’s legitimate. And you can also see something like, I’m learning real to invest in real estate. And my cousin is showing me, how are my brother showing me how my business partner said it’s a great idea right now. And so, I’m new to this, and just keep on saying that, right, just this long explanation, You can just do that, too.
You’re going to appear like just the normal Joe Blow, OK. Can refer people to you besides freedom, law, if I decided to be an entrepreneur and partner with you. Yeah, definitely, That’s how I do things. I mean, I love to talk to people, and then their friends, and then their partners and things like that, And it’s just fun. I mean, I talk to people that have areas of expertise that. I actually would use them as a partner or a business associate of some kind. So that’s what that’s what we do as entrepreneurs. Absolutely. Please send me people, if, you know, I would send people to freedom Life if I thought it would benefit them, you know, I don’t care.
So, sure, IRA’s put my name as the sole member under the LLC name.
How did the iris do that? Was that on an EIN application?
And if it was, so what?
No big deal.
Remember, nobody puts your name as the sole member on an LLC, OK? It may appear that way in an EIN application.
You may end up that way, So what that’s not problem You alone control how the articles are filed and the articles determine who is the owner of the company.
So it’s all in your hands, OK.
And no one can do that for you, not even the bank Finance Academy is really good as well, yeah. Is that Finance, By an SCR OK Or by Nance? Yeah, there’s some good ones out there. There’s some good beginner crypto people that you pay for service, and it’s probably worth every penny, because it probably save you money. It probably saves you money to hire somebody to help you out.
So, yeah, I would just get into it that way. Take your time, Take small risk, use the traditional rules about, don’t risk more than you’re willing to lose a course.
Be very cautious about proceeding slowly, like, like, when I did it, learning the seed code process and storing it, and learning how thinking, how to have a secure location for that data was important. And so, I just started with a small amount of money. I mean, what am I willing to lose 20 bucks, something like that, Right. I started in 20 13.
So it was not as easy back, then. It’s easier now. So I started with a small amounts of money, and when I got comfortable with it, I was really comfortable with moving large amounts of money.
Now, it doesn’t matter to me, But I’m still cautious because, you know, you can just one little thing you can mess up your seed code or misplace it, or something like that, So, great idea, yep. All right. So does the ultimate course have everything? I hope it does. I hope the ultimate course has everything now.
You can probably muscle through it right now, but in my opinion, I have not completely added everything, and I intend to, probably this quarter, it’s coming soon, OK?
So my intent is so that you can, if you want to, go the route of the video membership, and watch the videos, and within, let’s say, within the hour, You can have pretty good working knowledge to actually register your company, and get off the ground and start going, and, and everything works fine.
Yeah, and sample documents are going to be there.
I took down some of the older ones. I want to revise them, so I will put up the sample documents.
And in the future, as I, as I change them, I’ll put up the new ones when moving from coins to Fiat, from the LLC Exchange account, to a personal account.
What’s the best way to remove tax liability on the personal account?
Well, on the personal account.
Don’t sell coins in your personal account for dollars.
Don’t dispose of the asset in your name.
If you have to dispose of the asset, use the LLC.
All right, that’s the easiest way.
Appreciate you. Appreciate your comments on the videos. I’m glad they’re helpful. I’m glad you like them. Appreciate that. Um, is there somewhere we can learn? What you, Yeah. I mean. I am going to have a USB port installed right here.
And then if you guys plugin there, I can just download my knowledge and you guys can have it.
Gosh, I wish I could do that for anything else. I wish I could, you know, like on the matrix? I can learn to fly a helicopter real fast, I wish we could do that. But, no.
I might, full intent, is to give you the core principles, and examples, so that you can, as fast as possible, get the knowledge that I have, and move forward.
OK, so, I don’t know if that helps you, but let’s just say, reasonably, if you pay attention within three months, it’s kinda like a mini college course. Hopefully, you’re going to get it.
And, clients that I’ve worked with over the years, I’ll tell you, they, they are really good with this stuff.
I mean, I’ve got clients now that are friends and for friends for many years, and in fact, I’ll call them up, ask, ask for favor.
I just ask one of them a crazy favor that he was able to pull off, it was amazing.
But, um, these people are become experts unto themselves, they don’t need to call me up. In fact, they’ll call me up and tell me stuff, they did that. They never even asked me or anything, so you will get there. It’s just like anything else, just like a medium, If you never drove a car before and the first time, and you’re nervous, and everything, eventually, not only know how to drive it, but you know how to change the tire stuff like that.
So, all right, I told you I was going to try to make this entertaining. I don’t think my sense of humor is always that good, but But anyways, you see what I’m showing you guys: OK, let a ruling, look at the source, Understand what a letter ruling is. It is not a regulation, but let’s just act like it is, and it gives you the same information that’s in the regs. It is commentary. If you go to tax court over dispute, which you’re not gonna have here, I don’t see that happening for anybody.
This is going to have some weight.
So just understand the terms.
Everything I’ve told you so far is consistent with this letter ruling. There’s no tax liability when you, I mean, if you do what I’m showing you.
You’re deferring it, OK.
If you start seeing kryptos annexed, or designated as legal tender.
Well, then, OK, that crypto coin now becomes the dollar.
It’s the same thing, and you know, the rest.
Yeah. I appreciate that. I would love to work with somebody. Canada, if someone could work with me on a regular basis, I could show that person, a lot of the different things. And that person, I hope, would have some technical knowledge, and that would help me. I did talk to an accountant.
And it’s funny how they’ll tell you the truth.
After or they’re omit certain things when they’re retiring, and he said he was retiring, and so I said, Tell me this, You know, and we started talking about the different things, and he goes, Yeah, you know, that makes sense. We can do that here, sure. It’s just like there. And so, he confirmed a lot of the things I suspected.
The one thing about Canada, though, is: I think that: it’s, it’s a little bit more, I don’t know.
Yeah, the court system, and the tax system, it doesn’t have as many protections as we have here in the states, so, yeah, an accountant, OK. So, you just said, You need an accountant there, when you silkworm, OK?
If you need an account, what I would say to you is, you need an accounting function, you need somebody to do accounting, and for that, I would use a bookkeeper, they can do accounting.
If you need, if you need tax returns prepared, you can have a CPA here. If you don’t like our CPAs here, it can’t work it out with them.
You can find people that are highly competent in India, or on Craigslist, OK? You can hire people that are certified accounts, public accounts.
You can get the equivalent of a CPA in India.
I did this for my dentist, so I had him go and he found two firms for him, and I’ve used those guys before for other things. But they’re really good with English tax law, American tax language tax, or whatever. So I would recommend that if you need an account here.
Because it’s just the same because you can send your data over the internet and they can send you back the results, or they can do things for you.
So understand that if you want to have some privacy, consider that.
All right. Let me see here.
All right. Let me make sure I didn’t.
When you say this sell the coins in the LLC physician to paper dollars Do you then transfer the money to the personal account, and there’s tax OK?
There’s more to this.
OK, so if I sell coins, if I invest in Kryptos, and I want to avoid the tax liability on the initial taking profits, so I sell my coins now that are worth more, I get a bunch of dollars in my LLC account.
I need some way to allocate those, so let’s say it’s a lot of money.
Well, I would probably end up putting those in another investment. I would roll it over so that would defer the tax. Keep deferring the tax.
If I’m gonna buy myself a car, I would wire the money from my LLC account. Let’s say I put a million dollars in there, and then I’d just take 50,000 out to buy a car.
When I buy the car, I’m going to title in the name of a trust, or an LLC, or that LLC, or I’m going to put it in my name. And then, real quick, I’m going to tell the dealer.
This money that I’m buying the car with is coming from my lender and the lender’s name is such and such, And here’s this address and EIN, and the dealer will write up all the documents needed to put a lien on the title and send those documents to your lender.
Now, that lender could be your company, your company could have your own home address.
No problem, So, that’s how I would do it. Same thing with a house, OK?
But, otherwise, if it’s a large amount of money, I would recommend having an asset re-allocation plan.
All right. So that comes down to, like give him a brief overview on that, a two category.
two categories of assets: one is probably going to usually be real estate. OK, has an easy goto.
Another one would be somewhere where you believe you have proficiency or help or consulting. Or it can have some proficiency in a class of assets that you could be comfortable investing in.
Not pick something like on the stock market, because your uncle Bob said, it’s great!
That’s my recommendation, so I covered that in some other calls.
Alright, so folks have the report. Kryptos they have in a while, OK, so they feel like they have to report Kryptos. They have in a wallet as advised by their accountant. Can you recap this, please? Yeah, sure.
So if I have stock, I own stock, and it becomes worth more.
And I don’t sell it, and I didn’t take a dividend.
Well, that’s not income unless it’s accrual based accounting.
I don’t know if you’re reporting that or not, You shouldn’t.
In my opinion, you shouldn’t.
As long as you don’t sell it or receive a dividend in dollars, it’s not taxable.
Just like even these are staking contracts on the Internet you’re receiving returns as they call them in the coin.
That’s not going to create a taxable situation, especially with cash based accounting.
Whether or not it’s a personal account or LLC account, I would just recommend an LLC account, anyways.
All right, so, I don’t know if I was too short on that, but you do not need to report your crypto holdings because you’re going to make yourself mad, crazy, because first of all, the software on the exchanges doesn’t work, it’s erroneous.
If you have a 1099 for a personal account and it’s it’s incorrect like factually incorrect that you did not receive the dollars data on 1099, we can correct that your CPA, apparently, I don’t know of any what they’re doing, this, I’ll train him, if he felt they’ll do it.
They can get a determination letter showing that 1099 is not taxable.
OK, the amount stated there is not taxable, so, it’s just that they are uninformed, I should say, to be polite or don’t care, OK, they’re giving you the wrong advice.
I have never had a problem with this, and not only that, I’ve never had a problem doing these things.
I’m telling you guys with kryptos, since 20 13, I have never had a problem doing these same things with anybody since 1994.
I’ve been doing this a long time, with all kinds of thought of assets, or whatever things, real estate stokke, whatever.
Never had a problem.
Getting people out a lot of problems, actually, they, they, in fact, a lot of, a lot of my clients over the years, have been Victims of CPA’s. That’s how I learned a lot of this stuff.
Un, un mess it up, OK.
Yeah, please follow the videos I have in the content, because if you feel like you have to do it, ask yourself why, please go and look at my content, Look at this article I just sent you. There’s another article, I, maybe I should republish it. It is the one on where’s the crypto tax, OK? I’m gonna put it on I’ll put on to tell a telegram.
The article I wrote, Where is the crypto tax?
All right, this may help you. So, how can you pay for living expenses?
Yeah, OK.
The thing, the taxable income you’re left with out of your $20 million new windfall OK is still your $80,000 a year income.
So you can’t get out of telling the IRS, I have zero income when you actually have a light bill and a mortgage, and a car payment.
They’re going to say, well, who’s paying your car payment?
And if it’s your Uncle Bob, or if it’s the man on the on Mars, it doesn’t matter. The fact is, if it’s your car payment, and it’s being paid, then it’s your income.
All right, So for personal expenses, that is going to be part of your taxable income.
It doesn’t matter where the money came from, but what we’re talking about here is I want to roll over this money in a tax deferred way, because it can’t be taxable at some point. The future depends on what you do.
I can keep rolling it over though, to new assets and funding new companies without creating a tax liability, Almost like a 1031 exchange.
That’s what we’re talking about.
Heard of Infinite Banking. Yeah, OK, So Infinite Banking is a risk management tool, Keep in mind there’s a lot of front loading, meaning commissions you open an account, you get a life policy.
It’s for managing risks.
It’s a clever idea, but just run the numbers and make sure it makes sense to you, because you’re gonna pay huge commissions.
It might be worth it, but check it out. Maybe it’s not. So it’s either going to be taxes or commissions, right?
If you’re using the LLC method, I’m recommending you can’t structure loans without that. So, you’ve got options there.
Yeah, and you can buy everyday things, you can buy cars in real estate and things like that. Just don’t tile in your name, or if you do, make sure you put a loan on it, and how you put a loan on it.
If I buy a house in my name for my New Windfall and pay cash for it. Now, keep in mind your first risk is putting cash into A liability. You’re guaranteed negative returns, right?
It’s always going to cost you money or houses, not your asset.
But, if I want to buy the house and put it my name, I’m going to record a mortgage against the title, the property, and then I’m going to make my LLC or a new LLC the lender, OK, and I’m also going to document my ability to pay OK, whether it’s deposits in the bank account, or I’m setting an aside on a balance sheet somewhere.
My mortgage payments and the interest rate, and the numbers on there should be consistent with a normal mortgage at this time, at whatever time. Within a few years of when you’re doing this.
You need the mortgage A document, and you need the note. Now, I mentioned a while back.
I did a video on this, to get the mortgage document you can do this yourself. Am I even have a video on how to do this? You go to Sallie Mae.
You just Google this Sallie Mae securities, mortgage securities forums by state, or something like that. OK, Google that you’ll run to the government website and go by your state and download the mortgage and note. Now the note you have to find that again.
But you can get a trust deed or a mortgage from Sallie Mae, Mortgage Securities online for free download that you can edit the document.
I use bankrate dot com to do an amortization of my Mortgage payments. I don’t wanna get off into that too much, but that is how you buy it. And yeah, you can donate to a charitable organization.
You’re just not going to get a tax benefit because the LLC doesn’t file and the way I like to look at it is, I do donate places and I don’t ask for tax benefit.
Because I feel like if I’m donating somewhere, I want that to be my money that I’m donating that I worked for, that I was smart enough to earn, that I donated for a cause. That I believe in.
I do not want to write it off because then I’m denn people that fall 10, forty’s the taxpayers and the taxpayer system.
Right off is going to be spread amongst the people that are filing tax returns and I didn’t want them to have a share of my being my charitable contribution.
You see, if I give to charity, I want it to be me, I’m very selfish, that way I did it, I didn’t write it off and get a discount it, that’s not fair, that’s not really charity.
I’m, you know, Now corporations don’t have a conscience. They think differently, they don’t think at all.
So that is not good business in terms of like accrual based accounting and big, big corporations.
So if I were running a C, a big corporation, as the Chief Operating Officer, or CFO or something, probably wouldn’t get the job in the first place, or they fire me. So, that’s not good advice, in that sense.
But, for giving to charity, just accept the fact that it’s not going to be deductible.
All right, so, how can I pay for living expenses? All right, Some info, right?
Yeah, the accountant’s, I mean, here’s what I do.
When I get a bookkeeper, I just give them the documents I need, I need him to get the numbers from, which might be just my bank statement. It might be my bank statement. And some hand-written notes are a part of my e-mail message, and he’ll do it.
I like bookkeepers that don’t care, but my name is.
So I literally give all kinds of names. Charlie Brown, it doesn’t even matter. Sometimes I don’t end up given my name.
Yeah, relocation That’s the big thing. You guys are spending a lot of time to learn about kryptos and you thought you thought it’d be like, It’d be like stock I can just put money, and poof, I’m rich. And maybe it’s something like that, but there’s a lot more to it.
And re-allocation, it’s a different world.
So, people think, Once I get rich and Kryptos, or I’m already rich and kryptos, for example.
I don’t have to work anymore, OK? That may be true.
You don’t need a day job, but you got your work cut out for you, because you still have to manage that network. Trust me, you gotta do stuff. All right, you gotta be smart, because you could lose it, too.
So, all right, so, all right, happy to help anyone.
Oh, that’s nice, OK. Well, Brian is offering to help.
Work with like minded folks, feel free to suggest anyone calling, So this guy is giving out his phone number. I don’t mind given that out.
If you guys want to get help, Brian’s offering to help, he wants to help with kryptos.
I think we kind of hijacked the call from the people that Heather Hendry’s, I’m sorry about that.
But I’m gonna give your number out, Brian, it’s 4 6 9, 768-0614, you asked for help on crypto is you got it? All you beginners out there.
And then his e-mail is Brian at cache, C a C H E O, flow dot IO.
And cash flow dot IO, Same thing, C a, C, H E, flow dot IO.
Nice, OK, I know, hands up, OK, let me try to get you guys real quick.
OK, let me try to get to, I think Anthony has been there for awhile, Anthony, and was it free?
Free, Bert was next Anthony there?
Yes, hello?
Yes, and I’m a novice at this whole thing. So I just happen to find your, you, know, your link in the telegram chat. So thank you so much. I already learned a lot, but, so.
I have a lot of things, and I don’t know if you have time for it, I’ve been hearing people talking about crypto loans, you don’t have to answer that right now.
And then the whole going from exchange to exchange, like Coinbase from a third party.
And then back to your, know your Fiat, or you know country currency bank account or savings account whenever we’re using. And Then I’m hearing people, because I’m on this defined network.
I know people are calling it a scam, but I’m trying all right, anyway. So they can earn rewards on this thing that I’m doing.
And people are converting it back to, um, you STT tether. That seems to be the standard one of the standard stable coins, and then they’re paying bills, OK?
So my off on that or am I still on base so far?
Well you could do that. I’m sure I mean you’ll have a tax liability.
I mean, not from the coins themselves, You’re just having a tax liability from the income to pay your bills, it doesn’t matter that coins are involved.
Yeah, OK, because, that was, that was my big headache. I’m trying to still wrap my head around this.
Know, people are using kryptos as they’re earning through the staking are the nodes I’m not even that far yet.
And then they’re paying, you know, I’m hearing all these wonderful stories houser paying bills and things, you know, but anyway, what about crypto 401 keys hold that thought and then these other you know these other apps?
That are out there like Kashyap, I mean what are your initial thoughts?
And and I just got a couple more questions after that.
On the loans you can either you can borrow money with the coins as collateral or you can borrow coins are land coins.
I don’t know exactly what aspect of that but it’s just like anything else Yeah, OK. So again. That’s that’s totally new to me. This is like its own I don’t know what you want to call it foreign language. Teachers, but Yep. Yeah, and then some of these other sites, they were mentioning about educating and thank you for what you shared. two sites that were recommended.
There was a term called what was it again?
I just had it written down here something about a certified Bitcoin, Where did I put it?
I’m sorry, sir. Oh, Certified Bitcoin professional. Does somebody need to get certified or is that just something that marketing? Yeah, it’s a marketing term.
I mean, who’s going to certify for what?
I mean, I’m not even I don’t feel qualified to certify anybody for knowledge of kryptos.
But you could do that, I mean, Anthony Antonopoulos, that guy would be great to certify people and something. I don’t know, but. these guys have written books on. Kryptos would be suited to do that, any, anyone who has acquired an expertise could certify people.
But what does that mean? I mean, I think it’s just for marketing.
Yeah, you know, If I were to start a business, maybe get like You are, Brian.
Try to help people understand and navigate? You know, Is it necessary to have that, you know? Behind my name? Is? showing? Experience or relevance that? that was my big question, OK?
When I interact with people I want to make sure that what I say is 100% accurate, right?
If I don’t know what I’m not going to say or I’ll tell him I don’t know Force.
So if I’m going to say I’m certified at something There has to have some. There’s some meaning behind that. What does that mean?
And so if someone asked me, What does that mean? I’d have to be able to tell him.
So, if, if I’m so, if someone has marketing that is certified at something, you can take them at face value.
But it’s so important to have integrity when you’re dealing with people well, in anything, really. But especially in business.
So you would assume that person knows that, it, just for your due diligence, you can ask them, where did you get your certification from, And then make your decision based on that.
But just know that, I mean, any group of people, or individually, who’s an expert or has an association, can have criteria for certification of anything, an issue, Right. But maybe that’s a good thing.
But just know where it’s coming from. It doesn’t mean they’re magically.
All of a sudden, you’re, you know, your question, the question revolves around possibly partnering with Bitcoin, then, and you know, to show us, I guess to show that, know, is it worth And I’m not saying it isn’t worth, but is it worth pouring all this money?
Into additional or further education, You know, to just say, Hey, I’ve been certified in this and this and this.
No, I don’t know, but anyway, um, I’m almost done. And thank you everyone for your patience, but you mentioned well, I mean, do you do any particular recommendations as far as coins?
And the reason I’m asking is, tomorrow, I’ve been hearing all these wonderful stories about Duby in their program and their projects.
OK, so I was going to buy enough coins so I can at least start staking. I don’t have enough to do one node.
You know, that would be the ultimate goal.
But, and with that, are there any specific, no laptop recommendations that you have? I mean, do we have to do a crypto only laptop or you don’t have a dedicated laptop as far as recommendations? I’m not qualified to do that. unlike most people, I’m the consumer, mostly OK, but as far as computer technology use, what is suitable for your needs, I have a Linux desktop on an HP.
That’s my normal computer and then I have a dedicated Windows computer, HP.
I hate Windows, but it’s just easy to use and it’s compatible with the software and it’s easy. So, but I don’t have it on until I’m moving my coins around.
So, you don’t We don’t, I mean, what I’m hearing, and this is really for everyone, not just me, I mean, is it safest to have just one laptop dedicated to just do your, you know, the crypto? I like it, that way, I like it that way, and I also would like to keep my credentials in a secure location and backed up.
So, just keep those things in mind.
Is there like a recommended?
What am I thinking of, you know, not to get hacked as, you know, software, not the mcaffee kind of stuff? Or do you use anything in particular?
I’ve produced a video on this, I don’t want to go into too much on that, ignore it. But everybody has his own style.
And, OK, just check those out. Yeah, just ask that question more people like take up my videos, I’ll tell you. Right. Into someone. Alright. And that was free bird, I think.
Hey, John. Hey.
Hey, thank you. I’m a big fan of Costco and I stayed up till the wee hours posting your video on every single cost. Oh, all right. So, anyway, I’m in Canada and.
frustrating I just trying to find a good at Caltech, I don’t trust any of them. I do have one up here that is Pro freedom.
I never do, I never do that to make a list of professionals that to refer to, but what I would suggest is: I have a call it a way to qualify them.
So, a CPA is going to be collecting all your information for Ajax, yeah.
Yeah, they are, so, so. yeah, you have no privacy there.
Um, there are a couple of ways to look at this. I go to a bookkeeper, so that’s what I do.
I am a privacy fiend. I want privacy.
I look at privacy as money, the more I have, the better.
So, if I don’t want accounting, I will literally go on Craigslist and get a bookkeeper.
Well, you know, I just find somebody who will do, for 40 bucks, and I’m not trying to get a better price.
I’m just, I just want my privacy, and the bookkeeper doesn’t care who I am, and if he does district courtesy, I will, I’ll make up a name and give it to him. I’m Bill.
Right, and how much do Oh, yeah.
So, that’s what I do. You’ll get great book bookkeeping. That’s all you need. Really.
If you need a tax return prepared, there are people that will do it, they’re bookkeepers.
That’s what I’d suggest. If you can also check for, there’s Foreign Services, you can go to, on the internet, you can go or use fiber dot com fiber dot com as people in other countries. It will do your accounting for you.
OK, your local CPA is going to be the worst.
Yeah. I would just do it that way.
I would go online and look for bookkeepers, or people in other jurisdictions that will do the work, and they do really good work.
Does that help?
Yeah, I just paint, making a note of that.
OK, also.
I’m forcing me to get the job at work. So I’m getting a new jobs are trying to figure out.
I’m on back Martin’s.
No. Name.
Sanctuary is the log guys Send a message immediately, if you can please on Telegram.
Sure. Idea at JJ Singleton. Yeah.
Yeah, yeah.
So I’m just learning how to do business online and someone told me to setup Wyoming Trust or Wyoming preparation and all that stuff just to keep private do, you know about that for a while. It’s good, Wyoming’s. good. You can use Wyoming Corporation. And you could even domesticated there in Canada.
I like those. I like for Canadians.
I set up LLCs here in the states and then they go to Killam Brown or whatever they’re gonna do and then domesticate so they can locally take some money But they can still move their money in a way that doesn’t create a tax liability most of it.
So, yeah. Yeah. Yeah, and then they sign it.
And so you’re not allowed to talk about the corporation setup with who, who does an NDA.
The Agent B, the company that sets you up for marketing purposes. That’s totally for marketing purposes as there’s no benefit to that.
Yeah, OK, no, no, There’s no privacy recommended By the way I like my client’s name to appear in the articles on the public record because it allows me the chance to show the world that my client is not the owner.
So I get total privacy that way.
But if I don’t have that, then I might run into a situation where if a creditor doesn’t know that and he’s gonna assume my client well, then he has to deal with that and there’s your cost of litigation.
I avoid costs of litigation by disclosing my client’s interest in his company on public records. So I want the articles to appear with his name on there.
I want everyone to say that he is not the owner.
That way the creditor is not going to try to bring a claim.
And my client doesn’t have to defend it because that costs money.
Gotcha. Wyoming? I don’t think Wyoming publishes the name of the owner, which is fine, I mean, you can do or not.
You have an option, You can publish it yourself.
Like, if my client is in trouble, and he has a company that’s not publishing the name of the owners, I will actually supplement the annual report with his name, showing no, that he’s not the owner, to avoid the drama.
And to sell the company with an NDA is a very clever marketing tactic, it’s of no use at all.
Non disclosure agreement, it’s kind of funny, but just say no.
It is most of the stuff that you teach applicable in Canada.
Or yeah, the strategies are, will work in Canada. There is some slight modification because of your, it’s not because of your tax laws, because of the way things are done over there. I guess I should say.
It’s hard for me to explain on this call, but, yeah, you can. Here’s why it works.
OK, because you have property rights in Canada. We have property rights here in the States, we have property rights in the UK.
Well, it gives us a lot of freedom if you know what you’re doing. So, here’s an example of how I look at it if I have a tax liability because I just have a gain from something.
I can’t avoid it because I’ve have filed returns before so that governments can say, Hey, we got to report that you had this money and so we want our cut.
I’m not going to avoid that.
But, if myself and a friend of mine who have never done anything together, invest in something and get a return on it, while we still own that collective return, together, we don’t have a tax liability. And as long as we don’t take a portion of that out, we’re in good shape.
We’re not gonna have a tax liability because the two of us are one owner, so I have mixed my property rights in with somebody else who has a different tax situation, it’s a different person, and therefore, I don’t have the liability until we take our share out. Now, that exact scenario, I gave to an account in Canada, and he laughed, and he said, Man.
You’re right. Yeah.
You can pretty much do that in any jurisdiction because you have property rights. So how does that look in Canada, if I have a partnership with that relationship? That will work.
If I have, well, they’re not going to officially recognize an LLC, but you can register when they’re so that the partnership will work, or if you look on the Internet for holding companies in Canada, there is going to be some filing the tax return filing mentioned in the description. Because all of these are by attorneys.
But if you’re careful and read through it, you’ll see that as long as it doesn’t pay dividends, there’s no tax liability.
And I believe also, that if you form a holding company in Canada, which could be an LLC that you domesticated could be a local company, whatever. As long as you treated a certain way, it will be accepted that way. Meaning, as long as I don’t follow return for it, it’s going to be fine. It’ll be treated like a pass through, like we have here. I believe that, that would be the case.
So, there’s a lot that you can do in other countries, just like we’re doing here, but, if you want to do something specific, let me know, but generally you can get an LLC here at Wyoming is great, then, if you want opening an account for it in Canada, in your province, you just need a, um, it’s called an extra provincial registration form. That’s all.
Well, I get taxed twice or I’m just not supposed to pilot. I don’t think you will. I don’t know.
I’d have to check on that, I’d have to check, but I can tell you right now, you’ll have no taxes in the U S ironically.
yeah. None at all?
OK, yeah, There, you’ll know your government might. But that may be avoidable. I don’t know. I’d have to look at more detail.
I’m just, I’m not sure what to do if that’s just want to get it all set up. I’m trying to learn as much as possible, and I’m talking to accountants. And now, I’m thinking, differently, that’s not going to help you. Yeah. Those guys are not going to help you. You just kind of have to think that, that’s how I had to do in the nineties. I didn’t know. I didn’t know, and so I was like, Well, heck, if I invest my kind of his exclusive rights to the property, the iris cannot take it. That was my first realization because I read it right in the tax code.
So I said, Well, how the heck do I do that?
Well, if my client and his brother owns the thing, that normally the IRS would take the tax person here, um, then it’s no longer my client’s property and the IRS can’t take it.
Signature account, yeah.
It’s like two factor authentication.
Same thing. Same idea. You can do that anywhere.
So if I had a property with my Mom.
So be careful, though, on how it’s titled because there’s certain conditions like joint tenants with right of survivorship.
So you have to be careful of how it’s designated and I’d have to see the actual transaction to show you. And a lot of times the transaction is set forth in the contract.
So, we have to make sure that, um, there is an un tabulated interest, or a person, a member of that, or two party organization, doesn’t have a right, without the consent of the other, you have to bind them together, so that not one party has a right until something happens.
And then, you can do that anywhere.
You could, You could write that up into a local company, Stock joint stock company, a GMBH, a partnership, an LLC, in that way, OK?
All right, I’m just gonna have to watch videos and wrap my head around, all that stuff. That would help. Yeah, yeah. Sure, thing alright, And then Jacob Jacob.
Awesome, John. Um, you know, I heard of the insurance contract of the first time from you, and I’m just wondering I like the idea of holding it outside of the Federal Reserve banking system.
Seems really smart, especially with the dodd frank Act and how you’re like, no, you’re the you’re the least prioritize creditor. Basically.
So, I guess I’m just wondering, now, it’s like, you just said, you have to pay a lot of commissions, but is there a way to do the in infinite banking concept, and not have to pay like high commissions?
Because I always say it’s negotiable, but I can suggest some other things besides that, if that’s all you want to do with it.
Or mostly, I would suggest putting your money in something that’s not in the banking system, but it’s pretty pretty liquid.
That’s probably a new concept for a lot of you, I mean, gold is not a new concept, but loose diamonds are a new concept.
Also, yeah, also contracts for finished products.
I can explain that too.
But loose Diamond’s, I have a strategy of buying loose diamonds. I can republish it.
We could talk about that. Even, OK, yeah, loose dimas are very liquid, loose diamonds, or money around the world. We don’t, we don’t care about that too much, maybe in the movies.
So you can do, like, kohala practices, or something like that.
You could, You know?
It transact outside of that control system, with the diamonds, by just going local, and and say, you know, buying an apartment with them or something like that.
You could store money in loose diamonds and sell them very quickly for a good price.
Not the effort, but Yeah.
Yeah, OK, yeah, because the infinite banking concept, like, that’s, it, sounds good, and you make a certain percentage, and it’s interesting, I just, I just didn’t know about all the commissions and figured that Out yet. Yeah, just run the numbers. But here’s another concept.
Let’s say, I wanted to protect $2 million.
I might consider making a contract with a company that manufactures copper wire and tubing. Now, I have a reason for copper, I’m just going to tell you, but let’s just say, I chose that.
And so, my contract is this.
You guys are selling copper, wire and tubing, Finished products, left hand, you already have customers. What I would like to do is be the first customer.
I want to, I want the right to buy that product before you sell it to your existing customer and I want a discount, and the reason why I want that, it’s for whatever reason, but the exchange here is that you have a guaranteed customer under a contract.
I am going to buy it no matter what, and, if I don’t want to buy, which, I don’t want to buy it for, like the next 2 or 3 or 5 years, you’re going to keep selling it to your customer.
And, if I ever want to liquidate that contract, it is priced in copper, finished copper.
That already has a buyer.
So I’m highly liquid, and I’m not in the dollar, although I could be in the dollar, but I could do all kinds of things with that copper.
So that’s just another way to think about it. I mean, you could probably apply that concept and some other methods.
So that’s interesting. Yeah. So so you just have a, you have, like, like a futures contract, to buy a certain tonnage of, let’s say, $2 million of finished copper product.
Yeah, right. That’s kinda what you’re saying. And then, and then you’re saying that, you don’t even have to have a market, because you can just pass that along to their market and to their customer, you have, you have the right to buy it. Now. Yeah, Or sell it?
Like, you have the right to sell the copper.
So you could sell out of the contract and have whatever you want.
You could probably tend to copper, you have copper base metal.
And everybody. Yeah.
Then you have a bunch of copper has. So you just have to think about.
copper copper you can’t really store, like gold. There’s no reasonable way to do that.
So what you want to do is, without getting options or something, or getting into commodities, is, look at the finished product and have the right to sell the finished product for a thing you want or the right to buy it, OK. That’s all, OK.
Insurance, the, But loose diamonds are an easy one. You can go up the supply chain to make your deal. And the counter benefit is that.
On that one is the, the diamond broker, and there’s usually 4 or 5 in the supply chain. So you wanna go up a little bit, but you might want to get into a situation where you’re working with someone to buy from the cutter.
The person who’s closest to the cutter.
And, um, the benefit for him to go in with you is that he may be able to get a discount with a volume discount because you can come in with some cash, right? And so, it’s, it’s at the cutter. So, you’re, you’re kind of getting it right before it gets its finished product.
Up the cutter is the guy that makes it valuable.
And that’s right, before it’s before it goes to that first guy in the supply chain, the broker.
Yeah. So, if that’s the relationship, it might take a while to set that up, you might have to buy at retail first.
So if that appeals to, you, start checking it out, and you might even get to a point where you can get just a diamond seller in your neighborhood who is in with all the brokers and he may be able to set that deal up for you?
He has a piece of it, though, so yeah, just something to think about.
But they’re pretty liquid, I mean, heck, you could have, you can have, you could put $20 million in diamonds and store it in a coffee cup.
And then, is it easy to hide it? That’s great. There you go.
It’s waterproof, it doesn’t melt, it doesn’t burn, it’s the hardest substance known to man, I mean, I mean it’s cool, so you can’t bust it can’t break it.
Probably easy to travel with as well. It’s very easy to travel, as I’ve said, like, put it in a coffee cup, to let you bring that on the plane, or whatever you put in your pocket, Put it in your pillowcase, whatever. I mean, you can do all kinds of baking a cake, whatever.
So I got it, and that’s gonna, that’s going to have the benefit over having all the commissions that come with the Infiniti banking concept. Yeah, exactly.
Away to parts of money, right?
Yeah. Because that certainly seems to be a problem.
No transacting in fiat currency.
If they just lock it down like in Greece and be like, OK, well, you can take $300 out of data, like Yeah, that’s great. Yeah, we should know ahead of time. There’s no reason why any of us that are in this. I should that should have that experience.
We’re smart enough also A Vault service that is easily interchangeable with a coin.
So, for example, Boolean Star buoyancy has a bolt service and you can go from Bitcoin. It’s just a high premium, I don’t like it.
But there, if you have to have it also uphold is another exchange volts.
Another one to look at is malka, admit, MA, LCA two words MIT I believe it’s in India And then the other one is via Matt the IAEA and then MIT via Mat and Malka admit, are transporting services there, like Loomis or Wells Fargo.
Are they transferred? But they also have storage facilities and they’re outside of the, this is outside of central banking systems outside. That’s another to answer your question, sorry, has taken so long, but yeah. So you have a long list of things you can do to stay outside the banking system and stay secure.
That’s awesome.
There’s, there’s a cool bank up in North Dakota to, it’s a, it’s a, the only Chartered Bank. I believe it’s North Dakota.
Yeah, it is. It’s North Dakota, it’s the, It’s the state public thing.
There you go, OK, that bank deals with silver and gold. Oh, wow, it’s really cool. Yeah, in fact, they’ll pay you a nice return on your deposits in Silver.
And it is the only bank chartered organization that deals in precious metals.
In fact, I don’t even think it deals in dollars.
That may be another place.
Thanks for the effort. That’s a good question. All right.
All right, and let’s go to James and then Paul.
Hey, John. I appreciate all you do on these videos. When. You’re in the process of getting my LLC in Pennsylvania.
Got a couple of quick questions. I did some work for a company back in June, and it’s been an open invoice.
And, yep, I wanted to make it out to my new LLC, and so I got to submit a new W nine.
And so am I going to get an EIN number with the LLC, or do I go to apply for one or just apply for one? It takes like two minutes. We will give you the link and everything just like before.
Yeah, and as far as the name, I thought I heard earlier say, I don’t put my name on it. But but the BMA on it or the LLC’s name on, just put the LLC name on the benign form.
Choose the box that it’s a disregarded entity and end to end type the letter P at the end of that sentence.
Let’s take this on line three in the box and then you put the address and all that stuff, and then sign it as whatever your title is authorized signatory Vice President.
OK, put if E I N only do not put your SSN on the W nine and make sure that your contract is not just in your name, I assume you have to have a written contract with them.
I get, Yes, So, just to assign the contract to your LLC, and if they ask you to say, My account said, I had to do it that way, and then given the W nine, they’ll probably just do it anyways without, you know, telling them You’re signing it.
Yeah. I don’t think they’re going to have all, They want us that. There’ll be a nine, and that’s how they can do that.
OK, And then, another question is, if I sign up for, like, …
to set up appointments and use them with the credit card system, I just set it up as the LLC and make credit card number, it goes right into the bank account of the LLC.
What are you doing a merchant account for something?
Yeah, like, I’m opening up Kalen Delaney.
It’s not booking site for appointments, OK, OK, and they take your payments through like one of those, Yeah, right. So sometimes you deal with those like merchant accounts or the services. Make sure your LLC is the account holder even if you’re the guarantor, they’ll make you sign a personal guarantee with your name and SSN and all that stuff. That’s OK as long as even on PayPal. That’s OK as long as the account holder as the LLC.
Because that’s where the 1099 would be set.
All right.
And So then any money I make goes into the LLC as long as I don’t pull any out for me. Nothing gets, right? You got it. You got rolled over, yep. Mmm hmm, I love it.
Yeah, this is not some little gimmick I created as you guys know I’m just saying this, so anybody who here’s this later I’ve done since the nineties. I thought of it to solve a problem is solved a lot of problems.
I’ve done thousands of these just like this, I’ve been taking notes on all your videos. I’m just trying to clear in my head. All right, thank you, sir.
Alright, so, I think, Thanks for the questions. As we’re good? Alright, Paul, What’s going on?
Did you get to give your mute on or off? Check your mute?
OK, Oh, let’s see here.
Oh, let me see, I’m gonna ask you to unmute. Can you hear me now? Yes, I can. Yes. Can you hear me now?
Yeah, OK, OK, so, I’m going to recap something that you and I have spoken about in the past, just to give you kind of an update on where I’m at with it and, and the question that I have. So, I’ve got the irrevocable trust, a house in my grandkids name. I have a contract for sale on this property, and I have a contract to purchase.
Other property, I’m going to purchase the property through the irrevocable trust. And last time we spoke. When I applied for the EIN number, they said, I need to go back and fill out 10, 41 forms, and we agreed that I don’t need to do that. Right? And then there was another, there was something else.
Um, oh, we talked about, is there any capital gains on this, and we agreed that there wasn’t.
OK, so, but now the question is, I got hit with this you might have to fill out a 1031 form Don’t do any that’s changed. Now, that’s what you’re gonna run into all this stuff with attorneys. There’s a fill up this, don’t do that. The money’s gonna sit there and then you gotta go buy your next property.
OK, OK, because I have to close, and he’s coming up in two weeks, one on this property I want on that property.
I just want to make sure I understand all all the liabilities here so that I don’t get surprised by, OK, this is an investment.
It is a primary residence that under the trust, under the irrevocable trust. My: my wife and I, until we pass, have access, and I’m the trustee for the irrevocable trust. OK, so I’m just moving the trust property from one day addressed to the next. Yeah, that’s great. Do it. Do it that way. You’ve got the idea? Don’t do 10, 30 ones, and all. those forms. You don’t need it.
Yeah, yeah, OK. All right, thank you. Appreciate your patience.
All right, all right, Guys, well, I am gonna take some time off. Appreciate all you attending. I hope it helps.
You all have good evening and enjoy your weekend.
Bye, bye, now.


1. The discussion revolves around IRS Revenue Ruling 2019-24 and its implications for virtual currency.
2. The ruling from 2019 follows a previous one from 2014 that defined virtual currency as property.
3. The revenue ruling is not a law but serves as guidance and holds weight in tax court disputes.
4. Section 61 of the Internal Revenue Code defines gross income, and the regulation 26 CFR, 1.61-1 provides detailed information on gross income.
5. The ruling addresses the concept of a hard fork in distributed ledger technology and the creation of new cryptocurrency.
6. There is a mention of airdrops and their treatment in terms of tax liability.
7. The discussion touches on the catch-all language regarding gains or profits derived from any source of income.
8. References are made to contracts defined in various sections of the tax code, such as 12 34B and 12 86.
9. The importance of understanding the distinction between trust documents and LLCs is mentioned.
10. The conversation covers strategies to stay outside the banking system and ensure financial security.

Leave a Reply