{"id":6871,"date":"2020-03-13T19:10:42","date_gmt":"2020-03-13T23:10:42","guid":{"rendered":"http:\/\/privacyfight.io\/?page_id=6871"},"modified":"2023-06-23T10:21:18","modified_gmt":"2023-06-23T14:21:18","slug":"crypto-profit-taxes-part-1","status":"publish","type":"post","link":"https:\/\/privacyfight.io\/crypto-profit-taxes-part-1\/","title":{"rendered":"U3 &#8211; Crypto Profit &#038; Taxes &#8211; Part 1"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-page\" data-elementor-id=\"6871\" class=\"elementor elementor-6871\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-c0ee754 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"c0ee754\" 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-e02770f\" data-id=\"e02770f\" 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-e4980b8 elementor-widget elementor-widget-text-editor\" data-id=\"e4980b8\" 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\/715993383\/?\" 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            U3 \u2013 Crypto Profits &#038; Taxes \u2013 Part 1\r\n0:03\r\nHey, everyone. This is the man known as Bill Smith. And I\u2019m here with John Singleton.\r\n0:07\r\nThis is part one, of crypto crypto, Profit and Taxes. This is for ultimate members, at Privacy, Fight Club, and we\u2019re so excited that you\u2019ve joined Priva&#8230;        <\/div>\r\n        <div class=\"vidseo_collapse_content\" style=\"\">\r\n            <p>U3 \u2013 Crypto Profits &#038; Taxes \u2013 Part 1<br \/>\n0:03<br \/>\nHey, everyone. This is the man known as Bill Smith. And I\u2019m here with John Singleton.<br \/>\n0:07<br \/>\nThis is part one, of crypto crypto, Profit and Taxes. This is for ultimate members, at Privacy, Fight Club, and we\u2019re so excited that you\u2019ve joined Privacy Fight Club. So, thanks, everybody for doing that. This site has just been open a few days, and we\u2019ve had a wonderful response. So, thanks so much for joining. So, John?<br \/>\n0:27<br \/>\nYes, here\u2019s what we\u2019re gonna do. You\u2019re gonna give us a presentation talking a little bit. And by the way, there\u2019s gonna be four parts on this. So, if you don\u2019t get everything you need out of this broadcast, don\u2019t worry. We\u2019re gonna be doing a few more on this topic, and I\u2019m sure a million more on on Kryptos in general, I mean, it just comes up constantly, but, this is part one. And so John\u2019s gonna go over a few things and then if you\u2019re watching on, well, you must be watching on the your ultimate dashboard.<br \/>\n0:54<br \/>\nUm, there\u2019s a space there where we can take some questions in the live chat, so make sure to do that, and John will get to them after a little while, so feel free to put your questions in the live chat below. And We\u2019ll get to in a little while. Alright, John, I\u2019m gonna mute myself.<br \/>\n1:12<br \/>\nGo for it, OK. Thanks so much.<br \/>\n1:14<br \/>\nThanks everybody, for joining.<br \/>\n1:17<br \/>\nWe are going to talk about the Blockchain Tax Community Trust, that\u2019s the name I created.<br \/>\n1:21<br \/>\nIt\u2019s a standard type of trust.<br \/>\n1:23<br \/>\nIt\u2019s an irrevocable business trust organization.<br \/>\n1:26<br \/>\nAnd I\u2019ll explain about how all this works together in just a few minutes, but I want to explain that we\u2019re starting this with a couple of presumptions.<br \/>\n1:33<br \/>\nThe presumption is that the United States is a country, and US, we\u2019re, we\u2019re presuming that people listening primarily are US citizens.<br \/>\n1:44<br \/>\nHowever, these principles do apply. in other other countries. They\u2019re very similar. Even the tax system is very similar, and we\u2019ll get into that.<br \/>\n1:51<br \/>\nThis is a big subject, and let\u2019s presume that everything that moves this time as a taxpayer, because that\u2019s what the system does, it just looks at everything as I think that those taxes.<br \/>\n2:03<br \/>\nSo with all these presumptions, let\u2019s talk about the purpose of this trust.<br \/>\n2:08<br \/>\nThis trust, is written to describe a relationship that already exists. It exists with the account holder at a cryptographic currency exchange, like Coinbase.<br \/>\n2:19<br \/>\nUm, the person or the individual whomever it doesn\u2019t matter, whoever puts the value into this account is the grantor of the trust.<br \/>\n2:28<br \/>\nYou can be the grantor, the signer typically is the grant, or most people take their Paycheck Money, and Buy kryptos. And they put in Coinbase. Those individuals are the grand tour.<br \/>\n2:38<br \/>\nIf it\u2019s, if the account holder is an LLC, let\u2019s just talk about that. The account holder is an LLC.<br \/>\n2:44<br \/>\nUm, the LLC is the beneficiary of this trust arrangement.<br \/>\n2:49<br \/>\nAnd Coinbase is the trustee or the owner, namely, because it owns the private keys.<br \/>\n2:56<br \/>\nThe trust already existed before this written agreement. This written document that I have, what I\u2019ve just done, is describe the relationship. So that way, it\u2019s documented, and you don\u2019t need to call me up, not that I mine, but you don\u2019t need to keep relying on me to establish a relationship that already exist.<br \/>\n3:13<br \/>\nAnd it\u2019s a real irrevocable, because the exchange is a business. It has its own policies and it\u2019s going to operate a certain way, and you have no control over it as the account holder.<br \/>\n3:23<br \/>\nSo it\u2019s a irrevocable, like I just said.<br \/>\n3:27<br \/>\nBecause quiet, Coinbase or the exchange, whatever third party owns the private keys is the owner at that time.<br \/>\n3:36<br \/>\nAnd the ownership is established by what we would call an adhesion contract and adhesion contract is just basically says it\u2019s like a warranty, you take it or leave it.<br \/>\n3:46<br \/>\nSo when you\u2019re an account holder at Gemini or any of these exchanges, you have to agree to the terms of the Exchange. You can\u2019t change them and so that that\u2019s an that\u2019s a definition of an adhesion contract.<br \/>\n3:56<br \/>\nThat\u2019s why this is an irrevocable trust arrangement.<br \/>\n4:00<br \/>\nThe trust document simply describes the trust relations that are exist.<br \/>\n4:03<br \/>\nSo, what we\u2019re showing is that we\u2019re showing the ownership of the asset is in that is in trust.<br \/>\n4:09<br \/>\nThat\u2019s number one.<br \/>\n4:09<br \/>\nAnd number two, we\u2019re showing that because of that situation, there\u2019s no disposition of assets, so when you\u2019re trading, when the account holder is trading from coin to coin within the exchange or wallet to wallet, that doesn\u2019t constitute a disposition of assets. Now, we\u2019re gonna get into more detail in another segment. In fact, I\u2019ve got it right next to me here about them. That\u2019s too much information, so I just want to focus on the trust.<br \/>\n4:32<br \/>\nSo, I know you\u2019ll have questions about this, and I\u2019ll explain, in due time about what constitutes a disposition of assets, and how we deal with this so-called tax situation at the exchanges. We\u2019re going to get into that.<br \/>\n4:46<br \/>\nSo, I want to refer to the determination letter that I received back from the Secretary the Treasury.<br \/>\n4:51<br \/>\nNow, what we did is, we took, someone\u2019s 1099 and from Coinbase to 99 K.<br \/>\n4:59<br \/>\nAnd we simply asked the IRS to make a determination on these two points, essentially, that the ownership wasn\u2019t with the taxpayer who got the 1099, and there was no disposition of assets.<br \/>\n5:11<br \/>\nTherefore, there was no backup withholding requirement. That is really what we\u2019re asking in this determination letter.<br \/>\n5:17<br \/>\nSo that trust creates that situation. well, It identifies a situation where you don\u2019t have to go to the IRS and ask after the fact, like we did for a personal account. That\u2019s why I did the request for determination letter.<br \/>\n5:30<br \/>\nSo these are related, the request for determination letter was necessary, because we get a 1099, that was erroneous for a personal account.<br \/>\n5:38<br \/>\nIf you use this trust account, which really it\u2019s an LLC account, but if you use this truss structure, you eliminate the need to correct a 1099 because there\u2019s no tax consequence because you then have control over how you\u2019re gonna do tax reporting on your LLC. And for most people they\u2019re just gonna pass through any assets into cash flow.<br \/>\n5:58<br \/>\nHmm.<br \/>\n6:00<br \/>\nAnother issue that comes up is that if you look at IRS Publication 544 and I\u2019d like to give you a couple of references here, just so I know you guys want to do some research.<br \/>\n6:09<br \/>\nSo, let\u2019s look at IRS Publication 544, and you can simply just Google that on the internet, you can find it. It\u2019s a PDF file, it\u2019s very easy.<br \/>\n6:17<br \/>\nAnd the first, like five pages, I think you\u2019re going to see a definition of fair market value, and if you don\u2019t see it there, you will see there. But if you want to look elsewhere, you can look in the statute\u2019s, you can Google it on the internet and you\u2019re gonna find legal definitions of what constitutes fair market value.<br \/>\n6:31<br \/>\nAnd basically, the IRS says fair market value is what someone is willing to pay, what a stranger is willing to pay for a thing.<br \/>\n6:37<br \/>\nAnd typically, what that means is what\u2019s willing to pay in dollars.<br \/>\n6:41<br \/>\nSo, as it turns out, Kryptos, as you know, fair market value is not exclusive to the dollar.<br \/>\n6:48<br \/>\nYou don\u2019t have to sell it for dollars.<br \/>\n6:50<br \/>\nSo that\u2019s why I tell people it\u2019s not until you treat it as having been sold for dollars that it becomes taxable as having been sold for dollars.<br \/>\n6:59<br \/>\nNow, there\u2019s an article I\u2019ve written on \u2026 dot com and there\u2019s some points in there that you may want to look at it.<br \/>\n7:06<br \/>\nIt\u2019s the article that pertains to the recent October 2019 letter ruling.<br \/>\n7:12<br \/>\nSo I made some points in there and that further explains, and there\u2019s some more references in there if you want to do some more research.<br \/>\n7:19<br \/>\nUm, yeah, so like I was saying, the account holder at the exchange is the beneficiary, and the exchange is the trustee, and of course, whoever puts the money in there is the grand tour of that trust relationship.<br \/>\n7:31<br \/>\nThis relationship does not exist when you have, when you don\u2019t have a third party owner. So Coinbase is a third party owner. But if you\u2019re using a decentralized exchange, like wall of coins, or trays or exodus, that is not a third party owner of your crypto coins.<br \/>\n7:49<br \/>\nEspecially if you have ownership, exclusive ownership, of your private key, or you can see your private key, and no one else can see it, OK.<br \/>\n7:58<br \/>\nThen there\u2019s no third party.<br \/>\n8:00<br \/>\nSo basically, the trust does not apply when there\u2019s no third party holding your coins.<br \/>\n8:07<br \/>\nAnd it\u2019s the same treatment, or the same treatment of property rights, as if you were holding an ounce of gold or silver or whatever precious metal, or something of value of commodity, it\u2019s treated all the same. because cryptographic currency is defined as property, and I think that was appropriate: I think that was a good call.<br \/>\n8:24<br \/>\nSo, what\u2019s nice is people say: Well, there are no, there are no rules treating no rules or laws that pertain to Kryptos yet, but that\u2019s not true, because when Kryptos were defined as property, which I don\u2019t know, that\u2019s a tax definition, I don\u2019t see why that it would not be defined as property or intangible property.<br \/>\n8:42<br \/>\nUm, that\u2019s a nice definition because what happens is, all the laws for the last 100 years that pertain to property and property rights are now included with understanding how crypto property is treated. So, we do have laws. We do have rules, and we do have treatments of how to regard this particular type of asset.<br \/>\n9:02<br \/>\nOK, now, the Trust that ISN, this trust is not a standalone entity, like, like an Estate Planning Trust.<br \/>\n9:10<br \/>\nAnd I tell people that don\u2019t think of this as something where you\u2019re making a trust, and you need beneficiaries. Because, if you die, those beneficiaries will inherit it and this sort of thing. That\u2019s not what it\u2019s for.<br \/>\n9:21<br \/>\nA trust relationship exists very simply.<br \/>\n9:23<br \/>\nHere\u2019s an example, if I go on vacation for a week and I have my neighbor and I have good relationship and I, and I asked my neighbor, can you watch my dog and just feed them once a day or whatever, twice a day, when I, when I, when I get back, I hope he\u2019s in good shape.<br \/>\n9:36<br \/>\nThat neighbor, if he agrees, will become the trustee, and the dog is the property, and really, I\u2019m the beneficiary, or my family is the beneficiary, because it\u2019ll take care of that property, and he\u2019ll return it. Hopefully, the dog is still alive, right, so he\u2019s taking care of is a good trustee, I hope.<br \/>\n9:52<br \/>\nWhat we have here is, the trust is a relationship.<br \/>\n9:55<br \/>\nIt\u2019s not a person, like an LLC is regarded as a person or a C corp is regarded as a person or a partnership with 12 investors are members, is a person because it\u2019s recognized on its own.<br \/>\n10:10<br \/>\nIn law, OK? This trust relationship is, that\u2019s what it is. It\u2019s just a relationship. So it\u2019s not going to be treated like it\u2019s not going to have its own name.<br \/>\n10:19<br \/>\nI do assign a serial number to it only for making sure that it\u2019s authentic.<br \/>\n10:24<br \/>\nKnow, a couple of years from now, somebody asked me a question about it. I can check and make sure that the document I\u2019m looking at is authentic that we actually did it. It\u2019s not a copy or something like that.<br \/>\n10:33<br \/>\nIt doesn\u2019t need a tax number.<br \/>\n10:35<br \/>\nIt\u2019s not going to file a tax return. Again, It\u2019s just describing a relationship for tax treatment purposes.<br \/>\n10:42<br \/>\nUm, again, a decentralized exchanges now, a third party owner, I made myself some notes here, sorry.<br \/>\n10:47<br \/>\nI know it\u2019s redundant a little bit, but I\u2019m going to try to, I\u2019m trying to repeat myself. I actually do that.<br \/>\n10:52<br \/>\nSo some of these are kind of subtle points.<br \/>\n10:56<br \/>\nA trust relationship is not taxable by default, so a handshake is not taxable, but the people making the handshake could be taxed if they get something that\u2019s taxable but the handshake itself is just a relationship, right?<br \/>\n11:08<br \/>\nSo you can\u2019t, you can\u2019t really tax that.<br \/>\n11:10<br \/>\nSo until you report a transaction at a particular way andrzej taxing scheme, it\u2019s not taxable.<br \/>\n11:19<br \/>\nSo that\u2019s why I keep explaining our whole system, and this is, from what I\u2019ve seen, this is true in Australia, UK, Canada, most Western, and developed nations.<br \/>\n11:27<br \/>\nIt\u2019s the same, you have to elect the manner in which a thing is going to be taxed. First of all, the thing has to exist. It has to be a partnership. It has to be recognized by the jurisdiction that\u2019s taxing it.<br \/>\n11:39<br \/>\nThat means the partnership can be just a contract, or it can be a contract that\u2019s registered with the agency that the association, like your state or province.<br \/>\n11:49<br \/>\nOnce that happens, it becomes a taxable thing and when you report it a certain way when you tell your taxing authority, this is how much money and this is what kind of tax treatment we want, unless it violates any of the rules, It\u2019s going to go along with. your taxing agency is going to go along with that so you decide what that\u2019s going to be.<br \/>\n12:06<br \/>\nYou\u2019re joint stock company, right? That\u2019s a taxing scheme.<br \/>\n12:10<br \/>\nThe partnership, limited partnership, limited liability company, all these things.<br \/>\n12:15<br \/>\nThese are fall under taxing schemes, and you have to report, you have to go out of your way proactively and record, in a certain way.<br \/>\n12:23<br \/>\nThe trust we\u2019re using is written into the operating agreement for the LLC, so what it\u2019s only doing is describing the manner in which the LLC is going to own and treat and regard that particular asset.<br \/>\n12:35<br \/>\nIt does not pertain to precious metals that trust us describing specifically the LLC\u2019s relationship to cryptographic tokens or assets or coins. That\u2019s it.<br \/>\n12:46<br \/>\nDon\u2019t it\u2019s not to be used for your car, your house, or it wouldn\u2019t even help you in that sense.<br \/>\n12:51<br \/>\nIt\u2019s a special purpose, trust, I guess you can say.<br \/>\n12:55<br \/>\nAnd by the way, I mean, the limits of the trust are the limits of the relationship you have as an account holder or with the exchange. I can\u2019t write the trust beyond that.<br \/>\n13:04<br \/>\nThat doesn\u2019t make any sense.<br \/>\n13:06<br \/>\nSo it\u2019s only for that purpose.<br \/>\n13:09<br \/>\nAll right.<br \/>\n13:10<br \/>\nSo, now, there are some benefits. The real, the real benefits.<br \/>\n13:16<br \/>\nI mean, overall from your limited liability company, include really asset protection Everybody. Here\u2019s this asset protection. What is that?<br \/>\n13:23<br \/>\nWhat does that mean?<br \/>\n13:23<br \/>\nThat means that you\u2019re able to use a legal structure to spread out your ownership interest in a property or thing or asset, that could be attached by a creditor and let\u2019s say that the tax agency is a creditor.<br \/>\n13:39<br \/>\nThis easier to treat it that way.<br \/>\n13:41<br \/>\nSo, if I can, if I can divest my exclusive rights divests, that means get rid of if I can, if I have the exclusive right to spend some money.<br \/>\n13:50<br \/>\nAnd someone sues me.<br \/>\n13:52<br \/>\nAnd my money is held at the bank, right, a third party and someone sues me and I can write a check on that account. But nobody else can do that, only I can do that. And so someone sues me, gets a judgement and gets permission from the court.<br \/>\n14:01<br \/>\nHe can tell the bank to give that money to the creditor, and there\u2019s nothing really much I can do about that, because I gave the bank the money. And the bank has the duty to pay it over to the creditor because I had the exclusive rights.<br \/>\n14:14<br \/>\nBut if that money is held in a way where I don\u2019t have exclusive rights over any of it and those rights are shared collectively with one other person that\u2019s not a defendant that doesn\u2019t have a creditor, the same creditor that I do.<br \/>\n14:30<br \/>\nIt doesn\u2019t matter who sues me because that property right.<br \/>\n14:34<br \/>\nI no longer have, I\u2019ve shared it and this is what a limited liability company allows you to do. You can do this with a trust, you can do this with a partnership. Sometimes we have to use a partnership, but the LLC is really clean and neat on doing this. And it\u2019s well recognized in all of our jurisdictions in the states.<br \/>\n14:51<br \/>\nYou can do a similar organization in Canada, in the UK, and it\u2019s still recognized the same way.<br \/>\n14:57<br \/>\nThey just call it some different. It\u2019s a limited partnership or a limited liability partnership.<br \/>\n15:02<br \/>\nI prefer the limited partnerships over there.<br \/>\n15:04<br \/>\nYou can do an LLC in New Zealand and Australia works the same way you can do one in Belgium.<br \/>\n15:10<br \/>\nIt\u2019s really too complicated to organize an LLC in Belgium.<br \/>\n15:14<br \/>\nRepublic of Ireland is very friendly jurisdiction, so it appears to do an LLC firm for anyone in Europe. Actually, they\u2019re very friendly to anyone in Europe, but looks like.<br \/>\n15:21<br \/>\nSo the LLCs are really prevalent.<br \/>\n15:23<br \/>\nThey\u2019re very available to everywhere and you\u2019re gonna get the same benefits because the law works the same way.<br \/>\n15:30<br \/>\nAll modern law, basically say, look, if someone doesn\u2019t have something, it can\u2019t be taken from him. This is just a common understanding. Right?<br \/>\n15:41<br \/>\nSo, if I don\u2019t have it, and there\u2019s no trick, I didn\u2019t commit fraud or something.<br \/>\n15:44<br \/>\nIf I don\u2019t have it, it can\u2019t be taken, So that\u2019s the principle behind the LLC, so specifically, if I get sued, and I\u2019m a member of an LLC, but not the only member, I have to be more than one member now, I know a lot of you have single member LLCs and that works and if you ever need it too, you can in one day you can amend the articles so we can we can talk about that if you need to.<br \/>\n16:03<br \/>\nBut the LLC allows a situation where if I owe a creditor some money and the creditor gets a judgement against me, the judge says that the creditor can take whatever money I get.<br \/>\n16:14<br \/>\nHe cannot reach into the LLC and get my money out because my money is not parceled out now in the Operating Agreement.<br \/>\n16:21<br \/>\nIf it\u2019s described in there, the date and time when I\u2019m supposed to get paid and how much money, there\u2019s a schedule, let\u2019s say, then if that schedule is discovered through the court, which it could be, that money would have to be disbursed to the creditor.<br \/>\n16:36<br \/>\nBecause it was scheduled to be disbursed to me if there\u2019s no schedule, then that money is not attachable.<br \/>\n16:43<br \/>\nSo I can literally sit back and wait, and when that writ from the court expires, I can have the money disbursed myself, I can also have a disbursed to a third party, and we can talk about that too, But that\u2019s the benefit of an LLC.<br \/>\n16:54<br \/>\nIt gives you the power to decide how and when you have ownership rights and ownership determines liability.<br \/>\n17:02<br \/>\nYou can even have anonymous ownership, it\u2019s not really necessary.<br \/>\n17:05<br \/>\nWhat\u2019s more important is, you know, people come to me and they ask about anonymity and here\u2019s where you\u2019re gonna get it.<br \/>\n17:11<br \/>\nNot with being a signer for the LLC at the bank.<br \/>\n17:15<br \/>\nEverybody can see that. Everybody can see your name on the Secretary of State\u2019s website, no problem.<br \/>\n17:19<br \/>\nWhat they cannot discover is your relationship to the asset or the property. Because of how you choose to write the shopping agreement, Then only you can do that, and no one can tell you how to do that.<br \/>\n17:30<br \/>\nYou can, you can make it any way you want. And we\u2019re going to go over some examples of how to do that.<br \/>\n17:33<br \/>\nNow, the language I\u2019m going to give you, so that you can look this up. You can do a keyword search.<br \/>\n17:38<br \/>\nThe language is: Charging order, protection. C, H, A, R G I N G, charging, order O, RDR protection.<br \/>\n17:46<br \/>\nThat\u2019s what an LLC gives you.<br \/>\n17:48<br \/>\nif you can protect yourself against creditors, especially tax collectors. I don\u2019t care if you owe the tax or not.<br \/>\n17:55<br \/>\nIf you can protect yourself from the tax collector and creditors, you\u2019ve got covered, You\u2019ve got your asset covered, it\u2019s protected, and everybody can see it. It\u2019s like a glass cage, they can see it, but nobody can touch it, That\u2019s what an LLC does.<br \/>\n18:09<br \/>\nAnd then on the back end, you\u2019ve got this trust treatment. This trust that this described as recognizing a trust relationship.<br \/>\n18:16<br \/>\nAnd now you\u2019ve got this situation where the IRS agrees there\u2019s no disposition of assets because of the ownership and the way that\u2019s managed, OK?<br \/>\n18:24<br \/>\nSo this is really solid way to set up your contract and to own and establish your property rights in cryptographic currency.<br \/>\n18:32<br \/>\nSo here\u2019s what we\u2019re really doing, The tax treatment.<br \/>\n18:35<br \/>\nThe way we\u2019re doing this, it allows you the preservation of capital, but also the consolidation of capital, because as you are probably aware, if you look around you see anytime someone outside the system is accumulating wealth, He ends up getting destroyed.<br \/>\n18:50<br \/>\nI mean, you can see it in the news.<br \/>\n18:51<br \/>\nLots of times there is an agenda to prevent people from Consolidating capital unless they play ball with the associations, the United States, and these other globalist people, so to speak, OK.<br \/>\n19:01<br \/>\nSo by having protections on the tax side of it, you\u2019re going to be able to preserve capital. And I still gotta be careful about how you\u2019re managing assets, but at least it gets you out the gate.<br \/>\n19:12<br \/>\nSo preserving capital and wealth, consolidation, two key things.<br \/>\n19:18<br \/>\nYou\u2019re gonna, you\u2019re going to be really concerned about this when you start getting some windfall and you want to, you want to consolidate and you want to have some power. You don\u2019t want to be scared and start just spending money over here and there.<br \/>\n19:29<br \/>\nJust so you think you\u2019re diversifying because you don\u2019t understand what diversification is. You want to be able to consolidate your capital away.<br \/>\n19:35<br \/>\nThat\u2019s protected and maybe everybody can see it or not, but they can\u2019t get at it because it\u2019s their own system. Nothing. There\u2019s no trick. Here\u2019s their own system.<br \/>\n19:45<br \/>\nSo I would like to say you have near nearly absolute protection against third party claims.<br \/>\n19:51<br \/>\nObviously, I mean, you can do all this stuff. And then somebody can Magee. Right. Or somebody can break in your house and whatever they can.<br \/>\n19:59<br \/>\nWhat if they can take your car? I don\u2019t know.<br \/>\n20:01<br \/>\nSo, pretty much, you\u2019re pretty well protected, OK. This gives you a solid foundation. You can then start doing your investments, you can set up other structures.<br \/>\n20:08<br \/>\nYou can get into other securities, um, and one of the key elements in this risk management.<br \/>\n20:14<br \/>\nThis avoiding risk avoiding loss is the need or the ability to avoid the need for litigation.<br \/>\n20:23<br \/>\nSo, for example, if you\u2019re protected, there\u2019s no need to free to defend the rights of property that you might have, because those rights are not at risk.<br \/>\n20:30<br \/>\nSo, it doesn\u2019t matter if someone, soon as you and wins, he\u2019s not really going to get anything, you know, maybe some people want to defend it because they wanna get the truth or something.<br \/>\n20:40<br \/>\nBut ultimately, if you\u2019re collection proof, then there\u2019s no need to pay money for litigation costs.<br \/>\n20:46<br \/>\nnot and that could be substantial, in some cases, it could be, you know, hundreds of thousands of dollars. You never know.<br \/>\n20:52<br \/>\nSo, again, I\u2019ve said this I say this after.<br \/>\n20:55<br \/>\nUsually the first conversation I have with people with tax benefits are minor.<br \/>\n20:59<br \/>\nThey really are the wealth accumulation benefits are those that are substantial, OK? You\u2019ll see, once you get past the tax thing, it\u2019s not really a big deal. I mean, you can really mess up on the tax thing, and you can recover quite nicely.<br \/>\n21:13<br \/>\nNot as nicely as if you had planned ahead, but you can recover and you can get out of a bad situation.<br \/>\n21:20<br \/>\nSo, that\u2019s kind of, Minar.<br \/>\n21:22<br \/>\nYou know, your tax authorities are pretty pretty easy. Going when it comes to collections and payments. I don\u2019t care what country you\u2019re entering. You might disagree with me, but I can, I can show you how that works.<br \/>\n21:32<br \/>\nAnd the reason why, but, um, yeah, they\u2019re minor.<br \/>\n21:35<br \/>\nThe biggest risk you\u2019re going to have is, is not having an adequate asset allocation plan, not knowing how to manage risk. And here\u2019s an example of what I\u2019m talking about.<br \/>\n21:48<br \/>\nYou\u2019ve never had more than a million dollars in your life. You never even had close to that and tomorrow, you\u2019re getting $5 million liquid.<br \/>\n21:55<br \/>\nNow, what?<br \/>\n21:56<br \/>\nif you don\u2019t have a plan for that and a pretty good plan?<br \/>\n22:00<br \/>\nUm, it\u2019s not going to last long. I mean, the just statistics tell us that.<br \/>\n22:04<br \/>\nSo, I think that\u2019s, I don\u2019t want to get into too farming.<br \/>\n22:09<br \/>\nWe can go, and we can go more, if you want, but I just want to cover these main points and maybe see if that\u2019s prompted some some questions. Maybe that might be a good time for.<br \/>\n22:19<br \/>\nWe\u2019re going to have some questions, we think.<br \/>\n22:22<br \/>\nHey, yeah, no, Yeah.<br \/>\n22:25<br \/>\nI\u2019m getting an echo or you know questions yet.<br \/>\n22:30<br \/>\nOK, but can you go over some of the stuff we\u2019re going to cover in the future just to get ready?<br \/>\n22:37<br \/>\nYeah. I want to go over the detail the specific detail of the determination letter that I\u2019ve been using.<br \/>\n22:43<br \/>\nI\u2019m not gonna publish the whole letter, but I\u2019m gonna go into the actual legal arguments that I gave to the IRS, so you all understand how this works.<br \/>\n22:53<br \/>\nIt\u2019s then it started making sense, and there\u2019s a couple of analogies that I\u2019m going to make about when you have gains, OK. And fair market value, We\u2019re going to talk about that more specifically on a personal side, but this time, I just want to talk more about the actual trust.<br \/>\n23:09<br \/>\nOK, it\u2019s, I mean, it\u2019s special for the crypto asset. But, really, it\u2019s identifying a relationship that already exists, and it\u2019s the property treatment within the LLC.<br \/>\n23:21<br \/>\nOK, cool, of course, we\u2019ll be able to take questions right inside the privacy, fight club, Slack chat.<br \/>\n23:29<br \/>\nSo, if people are watching this later, I mean, you know, most people are at work right now, but if you\u2019re watching this later on, and you want to ask them questions, go right ahead in the discussion section inside our Slack room, and be sure to tag Jonn so that he sees the question.<br \/>\n23:43<br \/>\nAnd I\u2019ll be happy to interact there. All right. Anything else, before we wrap it up for today? John?<br \/>\n23:48<br \/>\nNo, that\u2019ll do it. All right. Excellent. All right, thanks for watching.<br \/>\n23:51<br \/>\nEverybody will be back this time next week, with Crypto Profit and Taxes, Part two, and, again, feel free to to tag John to tag me in the discussion section in the the Privacy Fights Slack group. All right, Thanks, everybody. We\u2019re out.<\/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-f895147 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"f895147\" 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-2352515\" data-id=\"2352515\" 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-aab4e2e elementor-widget elementor-widget-spacer\" data-id=\"aab4e2e\" 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-551124d elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"551124d\" 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-655e9e9\" data-id=\"655e9e9\" 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-43f62f9 elementor-widget elementor-widget-text-editor\" data-id=\"43f62f9\" 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. The video session is hosted by Bill Smith and John Singleton, where they discuss crypto profits and taxes, with Singleton providing a presentation.<br \/>2. This is the first of four sessions, and includes a live chat for members to submit questions.<br \/>3. They explain that, though the presentation is primarily targeted towards US citizens, the principles apply to other countries with similar tax systems.<br \/>4. They discuss the concept of a trust, with crypto exchanges acting as the trustee and account holders as the beneficiaries, with the private keys being owned by the exchange.<br \/>5. An account held at a crypto exchange is considered to be under an adhesion contract, which is non-negotiable and defines an irrevocable trust.<br \/>6. They refer to a determination letter from the Secretary of the Treasury, explaining that it can help clarify tax situations involving cryptos.<br \/>7. In this structure, the crypto exchanges (e.g., Coinbase) are defined as trustees while the account holders are beneficiaries.<br \/>8. They further delve into the concept of fair market value, stating that it is not exclusive to dollars when it comes to cryptocurrencies.<br \/>9. Singleton explains the concept of a trust and a trust relationship, stating that it&#8217;s not a contract, but simply a relationship.<br \/>10. He explains the benefits of a limited liability company (LLC) for asset protection, indicating that LLCs can be formed in many countries around the world.<\/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-6c65ab0 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"6c65ab0\" 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-49ce9f1\" data-id=\"49ce9f1\" 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>U3 &#8211; Crypto Profit &#038; Taxes &#8211; Part 1<\/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\/6871"}],"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=6871"}],"version-history":[{"count":7,"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/posts\/6871\/revisions"}],"predecessor-version":[{"id":25132,"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/posts\/6871\/revisions\/25132"}],"wp:attachment":[{"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/media?parent=6871"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/categories?post=6871"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/tags?post=6871"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}