{"id":18223,"date":"2021-08-31T11:09:31","date_gmt":"2021-08-31T15:09:31","guid":{"rendered":"http:\/\/privacyfight.io\/?p=18223"},"modified":"2023-06-25T10:15:59","modified_gmt":"2023-06-25T14:15:59","slug":"u44-llc-discussion-regarding-basic-tax-questions-and-using-the-llc-what-is-re-portable-and-taxable-and-what-is-not","status":"publish","type":"post","link":"https:\/\/privacyfight.io\/u44-llc-discussion-regarding-basic-tax-questions-and-using-the-llc-what-is-re-portable-and-taxable-and-what-is-not\/","title":{"rendered":"U44 &#8211; LLC Discussion Regarding Basic Tax Questions and using the LLC, What is Re-portable and Taxable and What is not"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"18223\" class=\"elementor elementor-18223\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-6f845bd elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"6f845bd\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-1f6b88f\" data-id=\"1f6b88f\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-3aeb3a9 elementor-widget elementor-widget-text-editor\" data-id=\"3aeb3a9\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"vidseo_wrapper\" style=\"width: 100%;\">\r\n\r\n    \r\n    \r\n        <div class=\"vidseo_vimeo\">\r\n\r\n            <iframe title=\"vimeo-player\" src=\"https:\/\/player.vimeo.com\/video\/722544101\/?\" width=\"100%\" frameborder=\"0\" allowfullscreen><\/iframe>\r\n\r\n        <\/div>\r\n\r\n    \r\n    \r\n    <div class=\"vidseo_collapse\" style=\"\">\r\n        <div class=\"vidseo_btn\" style=\"\">\r\n            U44 &#8211; LLC Discussion Regarding Basic Tax Questions and using the LLC, What is Re-portable and Taxable and What is not\r\n0:02\r\nRight, hi, everybody, this is John Jay, It\u2019s August fifth. Thanks for joining. You could see more content or privacy fight dot IO. There\u2019s some videos I put on.\r\n0:11\r\nUm,&#8230;        <\/div>\r\n        <div class=\"vidseo_collapse_content\" style=\"\">\r\n            <p>U44 &#8211; LLC Discussion Regarding Basic Tax Questions and using the LLC, What is Re-portable and Taxable and What is not<br \/>\n0:02<br \/>\nRight, hi, everybody, this is John Jay, It\u2019s August fifth. Thanks for joining. You could see more content or privacy fight dot IO. There\u2019s some videos I put on.<br \/>\n0:11<br \/>\nUm, I publish on YouTube, the Privacy Plate Channel. Privacy Fight is one word. I\u2019m adding a helpdesk to \u2026 dot com. So there should be a number in a chat window and a ticketing system. You guys can have access to more information faster. You can also reach me that way.<br \/>\n0:27<br \/>\nIt\u2019s not set up yet, we\u2019re working on it should be soon.<br \/>\n0:30<br \/>\nAppreciate your patience, and I hope that on my comments about what we\u2019re going to discuss this this evening are, are helpful. And I am sorry about that. If it\u2019s a mundane, if it\u2019s mundane. If you think it\u2019s boring, please throw something at me, OK, and let me know. Because I just, I\u2019ve been receiving a lot of questions on the subject. And it looks like we have a lot of new people, and some of the people are really smart at what they do.<br \/>\n0:51<br \/>\nAnd they\u2019re just kind of new to this concept, they\u2019re new to Kryptos, and then they kinda get this other information, and then there\u2019s like, wow, too much information.<br \/>\n0:57<br \/>\nSo, I just wanted to take a step back and just review stuff in the way.<br \/>\n1:02<br \/>\nI\u2019m gonna review a basic outline of how I recommend things. And also, I want to give some examples. Alright, so, kind of as a benchmark, our guide for everyone to follow.<br \/>\n1:15<br \/>\nAlright, so and then.<br \/>\n1:15<br \/>\nUm, just, we can ask.<br \/>\n1:17<br \/>\nWe can do questions and answers Here.<br \/>\n1:20<br \/>\nOK, so let me just start an intro here, I wanted to answer a couple of questions and I just got this on an e-mail a few minutes ago and I thought, it was really perfect.<br \/>\n1:28<br \/>\nthat, I could just, it was, these are great questions.<br \/>\n1:30<br \/>\nI mean, this is the kind of thing So this person is asking me, not to single somebody. I\u2019m not criticizing, I\u2019m just saying, it\u2019s a common question actually.<br \/>\n1:38<br \/>\nI noticed some CPA\u2019s on the internet, some CPAs are saying, OK, so I\u2019m gonna, I\u2019m gonna read you what this person is saying, that CPAs are saying.<br \/>\n1:47<br \/>\nSo he\u2019s got two comments or two questions regarding staking.<br \/>\n1:52<br \/>\nI setups.<br \/>\n1:54<br \/>\nSpinnaker Wind Ventures, OK, with, with, like, OK, so he set up an LLC last year, OK, and he\u2019s holding is Kryptos and offline wallets.<br \/>\n2:04<br \/>\nSo It\u2019s not necessary to use an LLC yet without offline wallets, it\u2019s good when you\u2019re working with third parties, because any, 10, 90, nine\u2019s would come from third parties like Coinbase, not your, you know, whatever, whatever, offline like your ledger obviously.<br \/>\n2:18<br \/>\nHe says many of my kryptos are also staking in those wallets.<br \/>\n2:24<br \/>\nHe\u2019s not going to get a 1099, but he says, I\u2019ve heard from CPA\u2019s, that staking rewards should be treated as ordinary income.<br \/>\n2:35<br \/>\nNo, they could be treated as ordinary income.<br \/>\n2:39<br \/>\nBut your income is not going to be in gold coins or medallions or shells, or cryptographic coins.<br \/>\n2:48<br \/>\nOK, that is not income if you say it is, than it will be.<br \/>\n2:53<br \/>\nSo, I would change the word should too could Not necessary he says, but since I have the tax immunity trust.<br \/>\n3:00<br \/>\nand I\u2019ll explain about that, he\u2019s talking about the LLC and the LLC that I recommend. And, I know a lot of people refer to it as a trust insurer.<br \/>\n3:09<br \/>\nIt operates like a trust, but I just really like to call it an LLC.<br \/>\n3:13<br \/>\nThere are some components of it that are like a trust. OK, I\u2019m not trying to be confusing. I hope I\u2019m not, but it is, in fact, an LLC, it is the account holder. It is a limited liability company.<br \/>\n3:27<br \/>\nIt is written so that any tax liability can be deferred in a way that you want.<br \/>\n3:34<br \/>\nSo, yeah, I guess you can call it a tax immunity trust if you want.<br \/>\n3:38<br \/>\nHe\u2019s asking, does this shield the rewards from any sort of income tax?<br \/>\n3:42<br \/>\nOK, so, let\u2019s just say, I\u2019m an imagined that rewards means from staking, he\u2019s getting a return. So, let\u2019s say if I\u2019m staking litecoin, I know I\u2019m speaking out of school here. But if I\u2019m sticking litecoin, and I put in one litecoin, and that\u2019s worth 1.7 litecoin later, that is not profit.<br \/>\n3:58<br \/>\nThat is not taxable income.<br \/>\n4:01<br \/>\nIf I measured in dollars, it\u2019s still not taxable income. If I sell it for dollars, OK, now we\u2019re talking.<br \/>\n4:09<br \/>\nOK, if I do it in my name, that way.<br \/>\n4:14<br \/>\nThe CPA\u2019s telling you to account for it as if it\u2019s paid in dollars. That\u2019s your problem, if you want to do it that way.<br \/>\n4:22<br \/>\nIt is not required, I\u2019m sorry, CPA\u2019s, but you tell me, when I\u2019m required to count an asset, and measured in Dollars, then report it as if I received the dollars.<br \/>\n4:34<br \/>\nIf I\u2019m not used accrual based accounting, somebody tell me that You guys need to go back to school.<br \/>\n4:43<br \/>\nSo let\u2019s just take the responsibility, OK, those of you like me, who are Investors and Kryptos Let\u2019s think for ourselves and stopped following CPA\u2019s on the Internet, OK, Who knows? who\u2019s writing this stuff? It\u2019s probably IRS agents or somebody Alright, so he\u2019s asking Do I need to file anything no.<br \/>\n5:02<br \/>\nI currently have not filed an reports for the company.<br \/>\n5:08<br \/>\nI Understand that. It\u2019s not required. Do the tax trust, OK, fine. That is correct.<br \/>\n5:12<br \/>\nIf the LLC that I\u2019ve written up for that purpose, and by the way, this whole thing is about your accounting practice, So if you do it in a CPA, says you will do, you will follow an accounting practice that will lead the LLC into a tax liability. There\u2019s nothing wrong with that. It just costs you more money, and it\u2019s unnecessary.<br \/>\n5:29<br \/>\nYou can use your LLC as a pastor.<br \/>\n5:32<br \/>\nWhat that means is it is that money is considered to still be in transit, has not reached a destination where a taxpayer has to account for it.<br \/>\n5:42<br \/>\nSo even though it gets paid to the LLC, and even though the LLC has an EIN, and even though it gets a 1099, that does not create a situation where the IRS has to reconcile anything.<br \/>\n5:53<br \/>\nThere\u2019s nothing to do.<br \/>\n5:57<br \/>\nSo, I hope that answers the question. Stop.<\/p>\n        <\/div>\r\n    <\/div>\r\n\r\n    \r\n<\/div>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-f9a40b2 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"f9a40b2\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-b05fb42\" data-id=\"b05fb42\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-cb274b0 elementor-widget elementor-widget-spacer\" data-id=\"cb274b0\" data-element_type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-286066e elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"286066e\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-631f627\" data-id=\"631f627\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-f8ea8d3 elementor-widget elementor-widget-text-editor\" data-id=\"f8ea8d3\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><strong>Summary<\/strong><\/p><p style=\"padding-left: 40px;\">1. John Jay, the speaker, conducts a discussion on the basic tax questions about Limited Liability Companies (LLCs) and their involvement in cryptocurrency. This includes what is reportable, taxable, and how privacy can be maintained.<br \/>2. Jay emphasizes the creation of a helpdesk for more accessible information, indicating a broader approach to sharing knowledge about taxes and LLCs.<br \/>3. The talk appears to be aimed at beginners in the field of cryptocurrency, with Jay aiming to answer common questions and dispel confusion.<br \/>4. The main focus is on understanding how LLCs work with cryptocurrencies, particularly staking, and the tax implications involved.<br \/>5. Jay explains that cryptocurrencies held in offline wallets in an LLC may not require 1099s since they are typically issued by third-party platforms like Coinbase.<br \/>6. Jay challenges the notion that staking rewards are automatically treated as ordinary income. He posits that while they could be seen as income, it&#8217;s not a requirement.<br \/>7. He discusses an approach where an LLC operates akin to a &#8220;tax immunity trust,&#8221; deferring tax liabilities as desired. He indicates that this can shield staking rewards from income tax.<br \/>8. Jay asserts that returns from staking are not taxable income, nor profit, unless converted into dollars.<br \/>9. He criticizes the advice of some CPAs who suggest accounting for assets as if paid in dollars, arguing this approach isn&#8217;t required and could potentially lead to unnecessary tax liability.<br \/>10. Jay concludes by stating that an LLC can be used as a &#8216;pass-through&#8217; entity, meaning the money remains in transit and does not necessitate a taxpayer having to account for it, even if the LLC receives a 1099.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-1ee4bca elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"1ee4bca\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-1147ee3\" data-id=\"1147ee3\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>U44 &#8211; LLC Discussion Regarding Basic Tax Questions and using the LLC, What is Re-portable and Taxable and What is not<\/p>\n","protected":false},"author":131,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[124],"tags":[],"_links":{"self":[{"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/posts\/18223"}],"collection":[{"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/users\/131"}],"replies":[{"embeddable":true,"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/comments?post=18223"}],"version-history":[{"count":7,"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/posts\/18223\/revisions"}],"predecessor-version":[{"id":25420,"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/posts\/18223\/revisions\/25420"}],"wp:attachment":[{"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/media?parent=18223"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/categories?post=18223"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/tags?post=18223"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}