Fresh & Fit - Steve From Accounting Returns

00:02:39.000 And we are live.

00:02:40.000 What's up, guys?

00:02:41.000 Welcome to the Fresh Fit Podcast, man.

00:02:42.000 It is Money Monday, and we're here with Steve.

00:02:43.000 We're gonna talk about taxes.

00:02:44.000 Let's get annoyed. 0.86

00:02:45.000 Let's go!

00:03:38.000 We're good to go.

00:03:50.000 One in Miami, one in Los Angeles, and one in New York City.

00:03:54.000 So I was up, I was with academics, we had like almost 40,000 people watching, and I was explaining, it was actually my old agency that I used to work for, HSI. I was explaining how search warrants work, my predictions, etc.

00:04:03.000 So make sure to definitely go check that out on the playback, you'll have that up. 0.93

00:04:07.000 But sorry for that delay, guys, because obviously this is like breaking news and shit, so. 0.69

00:04:11.000 Yo, Steve, did he pay his taxes, man? 0.95

00:04:13.000 I don't know.

00:04:13.000 We're going to find out.

00:04:15.000 Yeah, they're definitely going to find out.

00:04:16.000 He's going through it, man.

00:04:17.000 Yeah, so holy, man.

00:04:19.000 That's not a good thing when you're getting three of your places rated at the same time in three different jurisdictions.

00:04:25.000 But yeah, guys.

00:04:27.000 Money Monday.

00:04:27.000 Yeah, it's Money Monday, man.

00:04:28.000 We're here with Steve.

00:04:29.000 Obviously, as you guys know, it's tax season.

00:04:31.000 So we figured out why not bring our accountant in and we could talk about what you guys need to have in play before the deadline.

00:04:38.000 And, you know, Steve has a bunch of things that he has outlined.

00:04:40.000 But Steve, real quick, for the people that might not know who you are, can you introduce yourself to all the new viewers?

00:04:44.000 Sure.

00:04:44.000 So I'm Steve from Accounting.

00:04:46.000 These are my clients here.

00:04:48.000 And, you know, I've been doing at least three or four years now?

00:04:51.000 Yeah.

00:04:51.000 It's been a while, man.

00:04:53.000 Almost four years.

00:04:54.000 Yeah.

00:04:55.000 So it's great to be back.

00:04:56.000 I'm a CPA. I've got about 30 years experience.

00:04:58.000 I got two practices on the west coast of Florida.

00:05:01.000 One in Bradenton and one in Sarasota.

00:05:02.000 I've been doing this for a long time.

00:05:04.000 And I've owned several different businesses, invested in real estate.

00:05:08.000 And I, you know, I deal with a whole slew of different industries in my practice as well as high net worth individuals and putting together some complicated tax strategies for them.

00:05:18.000 And also, one of the only guys I know that does crypto taxes...

00:05:21.000 Yes, one of the very few.

00:05:23.000 I know that's one of the areas where a lot of the old-timers are not paying attention to it.

00:05:27.000 They would call them traditional finance guys.

00:05:31.000 As soon as it came out and I started taking courses in crypto, I said, okay, this is obviously the future of finance.

00:05:38.000 The quicker I learned about it and the more I learned about it, the more valuable I will be and be relevant in the future.

00:05:45.000 We'll talk a little bit about that stuff, too.

00:05:51.000 Probably a high percentage of them are involved with crypto in some way, and they need to basically either report their transactions on their tax return.

00:06:00.000 What percentage of accountants would you say are versed in crypto?

00:06:04.000 Less than 10%, maybe like 5% at the most.

00:06:06.000 I mean, yeah.

00:06:10.000 There's a lot of, and this is what I did, I wrote a book, because when I first started taking crypto courses with Charlie and Miguel, I took their course, and now I teach in their course too now.

00:06:23.000 So I've done several courses, and I did the tax portion of that for them.

00:06:27.000 So I wrote a book because one of my things, when I went in there, it was so advanced, and they were talking so far advanced that it took me a while to catch up.

00:06:37.000 So what I did was I said, okay, if I were to do this again, what would have been useful to me?

00:06:42.000 So I have a book.

00:06:43.000 It's like a one-on-one crypto.

00:06:45.000 It just gives you the basics.

00:06:46.000 From a tax perspective.

00:06:47.000 From a tax perspective, but not only that, just learning the language of crypto and getting in and onboarding and understanding the fundamentals of it.

00:06:55.000 So then you have that base knowledge.

00:06:58.000 And then from there you can learn how to set up, get on a DAX, onboard, from fiat to an exchange.

00:07:07.000 Buy crypto, open up wallets, secure your keys, things of that nature.

00:07:11.000 So it takes you to that next level.

00:07:12.000 And then learning what cryptos are good to invest in and basically looking at a project and not just like, right now we're in a, it's like the meme coin season right now.

00:07:23.000 So they have this blockchain called Solana, you may or may not be aware of it, but everybody's like coming up with like the, you know, like Hunter Biden's laptop as a meme coin, you know, it has no use at all, but people go in and then, you know, these, they call them rug pulls basically.

00:07:37.000 So it's like you try to get a sniper bot to get in on a position, carry that up to like, you know, stay in, stay in it for like 15 minutes, look at it and then try to cash out and make, you know, try to double your money.

00:07:46.000 It's almost like gambling basically in my opinion.

00:07:49.000 It's fun.

00:07:50.000 You can have some money.

00:07:53.000 There's one kid in my building, which I'm going to be doing some stuff with.

00:07:57.000 He's made enough money to buy two cars in the past few months.

00:08:00.000 And he's just learned about crypto.

00:08:02.000 He's a really smart kid.

00:08:03.000 He's like 19 years old.

00:08:04.000 So you're one of the few accounts that basically, like, you learn crypto first.

00:08:08.000 Once you understood it, you're like, okay, now I know how to apply this from a tax lens and how to properly deal with this.

00:08:14.000 Because I think it's very important the audience understand that, like, knows that not only do you understand crypto, but most importantly, you know how to deal with it from a tax perspective.

00:08:22.000 Because obviously, it's an asset class that is, I guess, far different than real estate or having a business or, I mean, you tell me.

00:08:29.000 So the IRS cheats at it as property.

00:08:31.000 So basically, for the most part, your gains in crypto are going to be taxed as capital gains.

00:08:37.000 Unless you're a miner.

00:08:39.000 And if you're a miner, and you're mining, let's say, Bitcoin, or you're mining some other blockchain, like Pulse Chain or something like that, where you're setting up validator nodes, you're getting paid in rewards of that token, of that basically called the Layer 1 token.

00:08:54.000 So that's set up as a business.

00:08:56.000 So that's taxed differently.

00:08:58.000 That's taxed as ordinary income, which is higher.

00:09:00.000 So as you know, but a lot of the crypto stuff is going to be short-term gain, so it's going to be taxed more like an ordinary income because it's taxed higher, but most of the other, excuse me,

00:09:16.000 less transactions Are going to be held for one year or more in crypto because the market's so volatile.

00:09:22.000 Yeah.

00:09:22.000 So people come in, they trade quick and they're doing like swapping coins.

00:09:26.000 And so the biggest mistake I see in crypto and the biggest misunderstanding is not understanding what's taxable, like a taxable event in crypto.

00:09:36.000 So basically you get your money.

00:09:38.000 You know, you take it from Bank of America, you go into Coinbase, you open up an account, you typically, most people, you know, get, like, U.S. dollar coin, which is a stable coin.

00:09:47.000 Yeah.

00:09:47.000 It stays, it's pegged to the U.S. dollar.

00:09:50.000 They'll get that, and then they'll flip it for Ethereum, get a MetaMask wallet, and then you need Ethereum to transact, because you have to pay transaction fees on the Ethereum networks.

00:10:00.000 That's called gas.

00:10:01.000 Yeah.

00:10:02.000 Then they start flipping that for coins.

00:10:04.000 Anytime you make a swap, Is a taxable event.

00:10:09.000 Really?

00:10:09.000 Yeah.

00:10:10.000 Wow.

00:10:10.000 Even though you're doing it on the app and you have it cashed out, yeah, but when you swap, that's a taxable event.

00:10:15.000 Yeah.

00:10:16.000 So if you buy Ethereum and then you're like, okay, and Ethereum, let's say it goes up and you go, I'm going to put this in like US dollar coin and USD, that's a taxable event because it's like a stock trade.

00:10:25.000 Does the interface do it for you?

00:10:29.000 Let's say you do this on a Coinbase or something.

00:10:31.000 Do they do that for you?

00:10:32.000 It does, yeah.

00:10:32.000 So there's a software program, but we'll get into that.

00:10:36.000 So I kind of wanted to start with just the basic stuff for like, hey, I gotta file my taxes.

00:10:40.000 When are they due?

00:10:42.000 I don't have my stuff ready.

00:10:44.000 We'll talk about extensions.

00:10:45.000 Okay, so we'll go there and then we'll go into the cryptos.

00:10:46.000 You guys can see, obviously, as well, because I didn't even know that that counts as a taxable event.

00:10:51.000 That might save some people some headaches in the future.

00:10:53.000 Well, yeah.

00:10:53.000 I get a ton of people talking to me like, well, I haven't taken any money out.

00:10:57.000 I didn't off-board any money yet.

00:10:58.000 And I got to off-board.

00:10:59.000 I had a guy that he's making millions in crypto.

00:11:03.000 And then they have this perception that you're pulling your money off.

00:11:07.000 To use it to purchase hard assets, like maybe real estate or something like that, or a vehicle, then that's when it becomes taxable.

00:11:13.000 That's what I thought.

00:11:14.000 No.

00:11:15.000 Wow.

00:11:16.000 No.

00:11:16.000 No, no, no.

00:11:17.000 You have to calculate all that on the blockchain.

00:11:19.000 You might have saved some people from going to jail.

00:11:21.000 Literally, you might have just saved some people from going to jail right now.

00:11:23.000 Yeah, so that's the biggest thing.

00:11:25.000 I didn't pull any money out yet, so it's all in there.

00:11:27.000 Well, yeah, but you still have transactions where there's gains and maybe losses.

00:11:31.000 Last year, 2023, we were probably going to see more losses on these returns.

00:11:37.000 And we'll talk a little bit about that.

00:11:39.000 Hopefully, some people employed some strategies.

00:11:43.000 Is that my phone?

00:11:46.000 I don't know what that is.

00:11:48.000 Okay, sorry, continue, continue.

00:11:50.000 So we'll get into the basics, I guess, for taxes first and get more into crypto.

00:11:53.000 Yeah, yeah, yeah, yeah.

00:11:54.000 So, I mean, you know, here we are, right?

00:11:57.000 A major deadline just passed for you guys, because you guys have S-Corporations, right?

00:12:03.000 Yeah.

00:12:03.000 And I put you guys on extension.

00:12:04.000 You didn't even know it.

00:12:05.000 I automatically put you guys on extension.

00:12:08.000 W-Steve, man.

00:12:09.000 Yeah, so March 15th passed, and we had to file for the S-Corporations, right?

00:12:13.000 That was the deadline.

00:12:14.000 So I put you guys on extension.

00:12:15.000 I filed a form.

00:12:16.000 It's called 7004.

00:12:18.000 So for anybody listening out there, hopefully you did that.

00:12:20.000 If you didn't, And now you go and file your S Corp return, you're gonna get hit with a penalty from the IRS. So I'll talk, there's a little trick that you can do to get rid of that.

00:12:32.000 So March 15th was for partnerships and for S Corps.

00:12:37.000 April 15th is for personals, 1040 as you call them, and then for C Corporations.

00:12:43.000 I don't have very many C Corporations, maybe like two.

00:12:46.000 And then what you can do is you can file for an extension.

00:12:50.000 An automatic extension for time to file.

00:12:54.000 So here's another mistake people make.

00:12:56.000 It's an extension of time to file, not to pay.

00:12:59.000 So what do you have to do?

00:13:00.000 You have to estimate, come April 15th, what you think you're gonna owe in taxes, right?

00:13:06.000 So there's a way, it's called the Safe Harbor Rule.

00:13:10.000 So the way to do that, if you're good and you can calculate within 90% of what you would owe when you go to file.

00:13:17.000 So let's say, oh, I owe...

00:13:19.000 You wind up owing $100,000, but then you go and you make an estimate on April 15th, and you pay that estimate, and you go on extension.

00:13:27.000 When you go to file, if you pay $90,000 when you do your extension, and you go find out that you owe $100,000, then you're within that 90%, right?

00:13:39.000 So the easy way I do it, as I take your prior year total tax, and another way is you could do 110% of that.

00:13:46.000 Ah, to be safe.

00:13:47.000 Oh, you owed $100,000 in 2022, let's pay $110,000.

00:13:52.000 And then that's a safe harbor.

00:13:54.000 So if you owe $200,000, you're not going to get penalized for failure to pay.

00:13:58.000 Because there's different penalties in the IRS. Let's say, man, Steve, I go to work, bro.

00:14:03.000 I got kids.

00:14:04.000 I got stuff going on.

00:14:05.000 I don't want to stress about this at all.

00:14:07.000 Right.

00:14:07.000 Who should I go to?

00:14:08.000 You?

00:14:09.000 TurboTax?

00:14:09.000 Who should I go to for this?

00:14:10.000 So, I mean, if you got a lot of stuff going on and you don't have no interest in doing your own taxes, obviously, if you got too much going on, then you want to hire somebody.

00:14:16.000 It's well worth your time to hire somebody that you can trust, that can, you know, obviously keep you out of trouble.

00:14:23.000 And...

00:14:24.000 I noticed when I switched from, you know, when I was working for the government, it was easy, right?

00:14:28.000 You can go to an H&R block, standard, you know what I mean?

00:14:31.000 You got one income, it is what it is, you got a regular job, cool, easy.

00:14:35.000 But once you become an entrepreneur, you need to invest in an accountant.

00:14:38.000 Yeah, so once you have a rental property or you're doing a side hustle, and then you have a W-2 on top of that, then you probably want somebody doing your taxes.

00:14:45.000 Who the hell wants it?

00:14:46.000 Every year, you've got to be apprised of all the new changes in the tax law.

00:14:49.000 You've got to go get the software.

00:14:50.000 You've got to figure out and hope you're doing everything correctly.

00:14:53.000 Because the laws change.

00:14:54.000 There's a bunch of things that Trump put in that Biden kind of slowly got rid of.

00:14:58.000 I remember you used to be able to write off 100% of your meals for business.

00:15:01.000 And you used to get big tax deductions for vehicles.

00:15:04.000 You don't get that stuff anymore now with Biden.

00:15:06.000 And little nuances like this, guys, most people are not going to know this stuff.

00:15:09.000 Right.

00:15:10.000 I would be worried just to even trap myself nowadays.

00:15:13.000 You never know.

00:15:13.000 Hell, yeah.

00:15:14.000 And most people wind up overpaying their taxes.

00:15:17.000 The vast majority of people that try to do their own taxes wind up overpaying.

00:15:20.000 They don't take advantage of the full tax code.

00:15:22.000 Especially when you're an entrepreneur.

00:15:24.000 Yeah, exactly.

00:15:25.000 So, okay.

00:15:26.000 So, sorry.

00:15:26.000 So, we talked about the deadlines.

00:15:28.000 What else did you want to...

00:15:29.000 So, like I said, I put you guys on extension for March 15th.

00:15:33.000 Nice.

00:15:33.000 Your subchapter S corporation.

00:15:35.000 Both of you guys have your own corporations.

00:15:37.000 W Steve.

00:15:39.000 So, basically, if I didn't do that or you didn't do that, you would get...

00:15:44.000 There's a $220 per month...

00:15:49.000 It's a steep penalty from the IRS if you didn't do that, right?

00:15:52.000 So a lot of people don't realize that.

00:15:54.000 And they're like, oh, file an extension. 0.79

00:15:56.000 You got like $2,500 because you didn't want to pay it for a year or some shit.

00:16:00.000 Yeah, so the next year they go to file and all of a sudden they get a letter from the IRS saying they owe like $2,500 or $3,500 or something like that.

00:16:08.000 It's a steep penalty.

00:16:09.000 So there's a way, if you get these penalties, a lot of people think, oh man, I got penalized.

00:16:14.000 They just kind of throw their hands up in the air and they deal with it, they pay it, right?

00:16:18.000 You don't have to.

00:16:19.000 So if you have a clean record that you didn't have any penalties for the previous three years and you're on time with your file, like you're up to date, like you filed your last three years' taxes, you don't owe anything, what you can do, it's called a first-time record.

00:16:36.000 First time abatement waiver.

00:16:38.000 So we call it the FTA waiver.

00:16:39.000 Not a lot of CPAs know this.

00:16:41.000 So I started employing this like, I don't know, 15 years ago in my practice.

00:16:45.000 I came across an article.

00:16:46.000 So you've done hundreds of these things?

00:16:47.000 Yes.

00:16:48.000 Okay.

00:16:48.000 A lot of people are like, I'm like, no, no, no, don't pay that.

00:16:50.000 And then the problem is some people wind up paying it.

00:16:54.000 And then they didn't have to.

00:16:56.000 And it's harder to get the money back.

00:16:57.000 So I'm like, no, no, don't pay it.

00:16:59.000 Get penalized.

00:17:00.000 When you get the penalty, give it to me.

00:17:02.000 And I have a template where I write a letter and then we just send it in.

00:17:06.000 If you're a 1040 filer and you have penalties on your personal tax return, then get the penalty notice on the top there, the upper right-hand corner.

00:17:15.000 There is going to be a phone number.

00:17:16.000 Just get on the phone number and call them and say, hey, I want to do the FTA waiver.

00:17:21.000 And then they'll see, they'll look up your account, and they're like, okay, you qualify, and they could abate it right on the phone for you.

00:17:28.000 Oh, nice.

00:17:28.000 In most cases.

00:17:29.000 So that's a little free sauce for your guys there.

00:17:32.000 Yeah, I mean, you already gave them a bunch of thousands of dollars right there.

00:17:35.000 Bro, we've been going for just a few minutes here, and you've already given them a bunch of value as far as like, oh yeah, that counts as $10,000.

00:17:41.000 Taxable event with crypto as far as swapping coins out.

00:17:44.000 And then right now with people, because there's probably people watching right now that might have got one of these penalties, and they don't know that they can actually, if they have everything else to stand on.

00:17:52.000 Just call that phone number.

00:17:53.000 It's an 800 number right there.

00:17:54.000 Call that phone number.

00:17:56.000 It's right on the penalty notice, and you can get it waived.

00:18:00.000 I mean, you might be on hold this time of year, but just start doing some other stuff when you're on hold.

00:18:05.000 Yeah.

00:18:05.000 Also, chat, just so y'all know, we are going to have a Q&A because I know when we have Steve on, you guys love to ask questions.

00:18:11.000 So we will have a Q&A at the end.

00:18:13.000 I know Steve just had some things he wanted to talk to y'all about, and then we're going to open it up for Q&A. So if you guys got questions, fnfsuperchat.com, or go ahead and send a Rumble rant in, and we'll answer your questions because some of you guys asked some really good questions.

00:18:23.000 And guys, also just to add in as well, we have our own Telegram chat for announcements and events for pressure fit only because, as you know, when you get notified on YouTube or rumbles sometimes, you don't get it all the time right away.

00:18:34.000 So type in the Telegram chat.

00:18:35.000 I think Mo has it in the chat as well.

00:18:36.000 Yes.

00:18:37.000 And join that.

00:18:37.000 It's free, by the way.

00:18:38.000 So I'll turn it back to you, Steve.

00:18:40.000 I know you had a list of things that you wanted to talk to other people, so go ahead.

00:18:42.000 I'm going to dive in.

00:18:43.000 So I think that's kind of what I want to cover, just the basic stuff that some people are going to overlook that I think is going to be valuable for your audience.

00:18:49.000 But the other thing I wanted to get into was the crypto tax, because that's the soup du jour today, right?

00:18:54.000 It's the soup of the day.

00:18:55.000 Everybody's really like, the market's up, and we're in a bear market now.

00:18:58.000 We just came off of a terrible long period where we were in the, excuse me, We're in a bull market.

00:19:04.000 We were in a bear market for quite a while.

00:19:07.000 So I'm sure a lot of the returns that people are doing right now in calculating their crypto transactions are going to come out to have losses.

00:19:15.000 So I don't know if a lot of people knew this, but this is another piece of really good, valuable information is And it's different.

00:19:23.000 When you're involved with a traditional finance stock market, and you're trading stocks, and you have stocks that are at a loss, a lot of people, what they were doing at the end of the year, like around close to December 31st, they were selling that stock for a loss,

00:19:39.000 and then they would buy it back in the following year, thinking that it might go up again.

00:19:43.000 And that's called loss harvesting.

00:19:45.000 So the IRS put a stop to that and said, no, no, you can't do that.

00:19:48.000 And, you know, they put a wash sale rule in place, meaning that if you sell a stock, you can't buy it back for 30 days.

00:19:57.000 Whoa.

00:19:57.000 So that eliminated that.

00:20:00.000 But in crypto...

00:20:01.000 You can.

00:20:02.000 It doesn't apply to crypto.

00:20:04.000 So a lot of people were probably down on a lot of their positions.

00:20:07.000 I know I did.

00:20:07.000 I harvested a bunch of losses because I had a ton of positions I was holding that were way down.

00:20:13.000 Some of them were like 80, 90% down.

00:20:15.000 I'm like, well, I'm not going to sell it now.

00:20:16.000 What's the point?

00:20:16.000 I'm just going to hang on to it.

00:20:17.000 But I winded up selling them right at the end of the year, and then I bought them back like January 2nd or 3rd.

00:20:23.000 Pretty much at the same amount.

00:20:25.000 And then I harvested those losses.

00:20:27.000 So right now, I'm sure the IRS is probably going to come up with a rule to plug that loophole.

00:20:38.000 But for now, take advantage of it.

00:20:39.000 So hopefully some people did that.

00:20:42.000 We'll see how this year plays out.

00:20:43.000 Probably people are going to be up.

00:20:46.000 In 2024, I would imagine.

00:20:48.000 I think this is going to be a pretty good year.

00:20:50.000 We've got three more rate cuts coming.

00:20:52.000 They just did another $1.2 billion in spending, the stimulus package again.

00:20:59.000 It's an election year.

00:21:00.000 They're going to bring the rates down as much as they can.

00:21:03.000 What's the rates down at this point?

00:21:05.000 It's like 7% or something.

00:21:08.000 I haven't even checked lately.

00:21:09.000 I've been so busy.

00:21:10.000 You're in the process right now, right?

00:21:12.000 I'm on a contract for a house right now.

00:21:15.000 I didn't even ask them what the rate was.

00:21:17.000 It's going to be somewhere around 6 or 7, I think.

00:21:20.000 I'm buying as an investor, so they always add an extra percent when you buy.

00:21:24.000 It's not like a primary residence.

00:21:29.000 Steve, let's go earlier about Puerto Rico taxes and crypto.

00:21:34.000 I'm going to finish with that.

00:21:35.000 Okay, cool.

00:21:35.000 Yeah, that's my agenda.

00:21:37.000 That's very important.

00:21:37.000 I'm going to finish with that.

00:21:38.000 So I'm going to go quickly over kind of the stuff we're talking about.

00:21:42.000 So I think I had...

00:21:45.000 Are we going to pull it on screen?

00:21:46.000 All right, let's do it.

00:21:47.000 Let's go.

00:21:48.000 So I don't know if you can blow that up, but look at...

00:21:50.000 Here's a 1040.

00:21:52.000 This is the 221040, right?

00:21:53.000 You got your name.

00:21:54.000 You got your social security number.

00:21:56.000 You got your address.

00:21:57.000 And then you got your filing status.

00:21:58.000 Look what's number three on there.

00:22:01.000 Digital assets.

00:22:02.000 That's new.

00:22:05.000 That's like, now everybody's, oh, the IRS doesn't know what they're doing.

00:22:08.000 They don't have the, they're not really paying attention.

00:22:11.000 They are, they've been, say they have like this Operation Hidden Treasure that has been since 2018, I believe.

00:22:19.000 Was it 20 or 2020?

00:22:20.000 It could be 2020.

00:22:21.000 Don't quote me on that, but there's a task force at the IRS where they're actually employing people to do on-chain analysis, where they're using tools and they're tracking big wallets, little wallets, and they're just data collecting.

00:22:38.000 Most people, probably over 80% of people, are not filing anything on their crypto.

00:22:42.000 They think they're totally invisible.

00:22:44.000 So there's this thing called, like, unless you're going in some route where you're using maybe a VPN and using some different type of exchange, like maybe KuCoin or something, they don't request your personal information.

00:22:57.000 That's called KYC. It's called, like, Know Your Client.

00:23:00.000 So these are the data points that they need to know in finance, like, who is this person, right?

00:23:06.000 So it's got your...

00:23:07.000 And this new thing with digital assets, didn't that just come out last year?

00:23:11.000 Yeah, so we've been getting that on our...

00:23:14.000 They just moved that on page one.

00:23:17.000 And then if you look at page two, if you scroll down to page two towards the end, that's where you sign it, right?

00:23:23.000 So go down to page two.

00:23:25.000 So look at what it says right above the signature, under penalties of perjury, I declare.

00:23:30.000 That's where they get you.

00:23:31.000 So now they have the legal foothold on you.

00:23:33.000 So if you don't put your crypto in there, you can literally mess yourself up.

00:23:38.000 The IRS is not wanting to put people in jail, obviously.

00:23:42.000 That's not their main thing, right?

00:23:43.000 They want money.

00:23:44.000 So they're going to always give you the opportunity to come clean.

00:23:48.000 I've had cases where guys have owed hundreds of thousands and it was like blatant, blatant tax evasion.

00:23:55.000 And they gave these guys breaks.

00:23:58.000 They just want money.

00:23:59.000 It doesn't serve them to take a criminal track to it.

00:24:04.000 Yeah, I mean, I've worked with IRS agents before, man.

00:24:06.000 Like, they're really not looking to arrest people unless it's like egregious.

00:24:10.000 Nine out of ten times when IRS criminal investigations is after you, you did some other crimes on top of the money crimes, which is why they're not coming after you because you got that money illicitly in the first place.

00:24:19.000 Correct.

00:24:20.000 But if you're, you know, making a mistake or you didn't know how to label something or whatever it may be, typically it doesn't rise to the level where they're going to come after you criminally.

00:24:27.000 It's just like they'd rather get money from you.

00:24:29.000 That's what they'd rather do.

00:24:30.000 So question, would this trigger an audit if I don't put crypto down on my form, 1041?

00:24:36.000 No, not necessarily.

00:24:38.000 They are data collecting right now, so probably they're using this not as a tool to go after specific individuals.

00:24:45.000 They're using it as a tool to figure out who's actually saying that they have digital.

00:24:51.000 How big is this?

00:24:52.000 How big is it, you know, because we're talking about that we're like, what, like, maybe three trillion?

00:24:57.000 I think once it gets, you know, the entire market cap of all crypto, right, we talk about that, it's like probably the size of like, It's a little bit bigger than Apple, right?

00:25:06.000 The equity of Apple.

00:25:07.000 The market cap of Apple.

00:25:09.000 Really?

00:25:09.000 Yeah.

00:25:09.000 So it's really small.

00:25:11.000 It is small.

00:25:11.000 Worldwide, right?

00:25:12.000 Worldwide.

00:25:13.000 Worldwide.

00:25:13.000 From a worldwide perspective.

00:25:14.000 So I don't think it's going to be really significant.

00:25:19.000 Once it gets to $10 trillion, now it's significant.

00:25:22.000 Now you're talking about...

00:25:23.000 Did you put for us that we had crypto, I guess, last year?

00:25:25.000 Or no, was it not on the form last year?

00:25:27.000 It wasn't on, so now it's on now.

00:25:29.000 So this year, I have to tell you how much I have.

00:25:33.000 Actually, those may become useful because we may use that to offset.

00:25:39.000 I'm assuming probably your positions would have been down last year when they calculated some of those positions.

00:25:45.000 So how does that work then?

00:25:46.000 Because obviously crypto is volatile.

00:25:48.000 It's going up and down every single day.

00:25:50.000 Do you just tell them how much of each coin you have, I guess?

00:25:53.000 No.

00:25:54.000 No, no, no.

00:25:54.000 They don't care about that.

00:25:56.000 That's more for foreign bank accounts, right?

00:25:58.000 Okay.

00:25:58.000 So that's other than the foreign bank account.

00:26:00.000 So how would you even properly estimate So you don't.

00:26:02.000 So what you do is you get a software program like CoinLedger, right?

00:26:07.000 CoinLedger pulls in, you plug in, you connect your wallets in there, and it can go on and it can pull all the decks, like the decentralized exchange information, all your trades.

00:26:17.000 It does a pretty decent job of doing that.

00:26:20.000 And it'll scour the blockchain, whether it's Ethereum or, you know, whether it's Solana, and it'll pull all the information and figure out what trades that you did, or swaps, or maybe you got airdrops that you claimed, or maybe you have,

00:26:35.000 like, you did some, like, yield farming where you're getting, like, you know, you're, like, staking your crypto and you're getting, like, interest, basically, on it, more coins.

00:26:45.000 So it'll calculate all of that.

00:26:48.000 And then it'll give you a pretty good indication of like, you know...

00:26:51.000 Does it timestamp it to that day, I guess?

00:26:53.000 No, not really.

00:26:54.000 It just pulls everything together in a nice report saying, okay, we saw you took this coin, like Ethereum, and you swapped it for USDC. You bought Ethereum at $1,500, but when you swapped it to USDC, it was at $3,000.

00:27:05.000 Okay.

00:27:05.000 Right?

00:27:06.000 So it'll calculate that transaction because you swapped it for...

00:27:10.000 A stable point.

00:27:11.000 But obviously that report is generated as of that day when you do it.

00:27:14.000 No, so it takes January 1st all the way to December 31st.

00:27:20.000 Yeah, because it's the year prior.

00:27:20.000 So it'll take that calendar year.

00:27:22.000 The average of the year.

00:27:25.000 It'll pull whatever transactions that were taxable events.

00:27:29.000 It knows that.

00:27:31.000 Because blockchain is just basically a public spreadsheet.

00:27:35.000 Yeah.

00:27:36.000 That's all it is, and it's got all the transactions in there, so it knows based on your address and your wallet and the cryptos that you had, they have specific addresses, it knows how to calculate that.

00:27:46.000 Now the only problem with when you're pulling all of this data off, you have to analyze the report it prints out, and it'll kind of flag, like CoinLedger's pretty good, it'll flag and say, hey, by the way, we see that you got one side of the transaction here, but you don't have any cost basis on the other side, so you need to look at that deeper.

00:28:03.000 So maybe they transfer some crypto over from another wallet.

00:28:07.000 And it started with like a zero basis or something like that.

00:28:11.000 Their balance sheet's off.

00:28:12.000 Yeah.

00:28:12.000 Okay.

00:28:13.000 So that's why you got to work with...

00:28:14.000 Probably in most cases, you probably have to like...

00:28:18.000 Do that for your accountant and give them the reports and kind of walk them through.

00:28:23.000 Because a lot of these guys don't know what they're looking at.

00:28:25.000 They have no idea.

00:28:26.000 I'm confused right now.

00:28:26.000 I'm just listening to you.

00:28:27.000 I'm like, God damn. 0.99

00:28:29.000 Imagine like, you know, four or five years ago, somebody came to me. 0.99

00:28:32.000 I would like a swap, a yield, like, you know, liquidity providing airdrop.

00:28:36.000 I have no, I would have no idea what they're talking about. 1.00

00:28:38.000 Shit. 1.00

00:28:39.000 We trust in Steve. 1.00

00:28:40.000 Yeah, man.

00:28:41.000 Yeah, man.

00:28:43.000 So, dude, what I'm realizing is, like, this year and the years to come, your accountant needs to know crypto, man.

00:28:49.000 If you have anything.

00:28:50.000 This is the future.

00:28:50.000 This is the future of finance.

00:28:51.000 You need to know it.

00:28:52.000 I mean, that's crazy that they just put it to the front page randomly like that.

00:28:56.000 Like, hey, yeah, buy digital assets now.

00:28:57.000 Yeah, and now they've got the central bank digital currencies.

00:29:02.000 Which the U.S. has one, and most major countries do have them too as well.

00:29:06.000 So that's the next level.

00:29:08.000 I have my own tinfoil theory of how that's going to be rolled out.

00:29:13.000 I think it's probably going to be through the stimulus.

00:29:16.000 So they'll have people like, okay, they just did a $1.2 billion stimulus package, right?

00:29:24.000 So they'll be like, okay, maybe we have some COVID type of event.

00:29:31.000 Where they're going to be like, okay, if you want to claim your stimulus money, you're going to get $2,700.

00:29:36.000 How are you going to do that?

00:29:37.000 We're going to give you CBDC, and then you're going to set up a bank account.

00:29:39.000 You're going to go through your KYC, hook in there through your phone, and then everybody's going to want that money, obviously, right?

00:29:45.000 And then that's how they're probably going to use some method.

00:29:49.000 That's my theory, to usher in the digital bank currencies, I think.

00:29:54.000 Wow.

00:29:55.000 At some point in the future.

00:29:56.000 Listen, let me get it straight.

00:29:58.000 So you're telling me, let's say I had crypto back in the day.

00:30:01.000 I was in the club popping bottles, getting lit, buying Lampos, Ferraris, all that fun stuff.

00:30:08.000 They're going to tax me all the way back then for my crypto, even though it wasn't on the form in 2021, 22?

00:30:15.000 Yeah, so what I would say is like, you know, definitely you can go back and I think there's going to be some...

00:30:21.000 Grace?

00:30:22.000 Yeah.

00:30:23.000 So what happened was like back in, I can't even remember, maybe like 20 years ago, there was a lot of like contractors that were working for construction, like developers and stuff like that.

00:30:33.000 And a lot of them like didn't, they were like on 1099 basis or whatever, you know, so they would just not issue 1099s.

00:30:41.000 So it was becoming a big issue because we had like a real estate boom.

00:30:45.000 And with the IRS, it was put together a forgiveness program saying, hey, file all the 1099s, come, and then they weren't going to kill you on all these penalties and interest.

00:30:55.000 And it was like a coming to Jesus, like, okay, here's your one chance.

00:30:59.000 It's going to be like a forgiveness program where people came forward, they would pay whatever they probably were supposed to owe, and then they get caught up and then...

00:31:10.000 Promise to stay in compliance in the future.

00:31:12.000 Okay.

00:31:12.000 So I think there's going to be something like that because, I mean, the underreporting is, it's crazy.

00:31:18.000 Like, I think, like, it's probably less than 10% of people, probably, honestly, that are involved with crypto that are actually reporting on their tax return.

00:31:28.000 I would probably estimate it's like that, yeah.

00:31:31.000 There's been a couple studies on it.

00:31:32.000 I had some good numbers when I did the course. 0.84

00:31:34.000 I don't have them offhand, but it was ridiculous.

00:31:36.000 I think in 2015 or something like that, the IRS did similar to that.

00:31:44.000 They figured out who was reporting Bitcoin or something like that.

00:31:50.000 And they knew...

00:31:51.000 How many people were involved with Bitcoin and sold it or whatever, maybe based on blockchain analysis?

00:31:57.000 It is, yeah.

00:31:58.000 And then I think there was only maybe 800 people in the entire United States, and we knew thousands and millions of people were involved with the crypto at that point in time.

00:32:10.000 So that just goes to show, yeah.

00:32:12.000 And then also the general mindset of people that are involved with crypto, Are kind of those that are like, I wouldn't say anti-government, but like anti-establishment.

00:32:25.000 Yeah, yeah.

00:32:25.000 Right?

00:32:26.000 So that kind of like, it's like, there's a way to do it.

00:32:30.000 You can make money, you can make a lot of money on it, you can do it right, and you can sleep at night and not worry about. 0.98

00:32:36.000 If you think for a second that the IRS is stupid and it's not going to come after you, it's not going to find out, like... 0.79

00:32:41.000 Once you get big sums of money and you're moving whale amounts, you're in the millions, then I don't know if it makes sense to stay off the grid and not report it. 0.99

00:32:54.000 I'm not worried, but let's say I was a Nigerian scammer. 1.00

00:32:58.000 Let's just say I got the tip that I was looking towards my crypto now on the forums.

00:33:05.000 If I move to Puerto Rico, if I move to maybe Bali, will they come after me then?

00:33:10.000 Because, I mean, I'm going out of the country.

00:33:11.000 So that's a good question.

00:33:12.000 So, I mean, Puerto Rico has Tax Act 60.

00:33:16.000 That's like Condado in Puerto Rico, just outside of San Juan, is like a big crypto haven.

00:33:21.000 So a lot of people have gone there and have made vast amounts of money.

00:33:25.000 And taking advantage of the Tax Act 60.

00:33:28.000 So basically, they'll become a full-time resident there, and you only pay 4% in capital gains rate.

00:33:37.000 That's huge.

00:33:39.000 The problem is, let's say you're planning on doing that, and now you have all these capital gains already, and you have millions.

00:33:49.000 Now you want to move to Puerto Rico.

00:33:51.000 All of those that you have made on the mainland are subject to the U.S. Internal Revenue Service taxing.

00:33:58.000 It's not until you get there and you get an attorney and then you actually sign all the paperwork and then you identify your public addresses for your wallets, then you start there.

00:34:10.000 So all that stuff that came prior is subject to the United States mainland.

00:34:15.000 Nice thing about that, if you do a full-time residency in Puerto Rico, you don't have to give up your U.S. citizenship, which is good.

00:34:22.000 You can't vote in the federal election.

00:34:24.000 But you don't, if you don't have any sources of income or anything outside of the U.S., outside of Puerto Rico, excuse me, then you don't even have to file a U.S. income tax return.

00:34:33.000 You don't have to file that 1040.

00:34:34.000 You just file a Puerto Rican government tax return.

00:34:37.000 Oh, wow.

00:34:39.000 Interesting.

00:34:39.000 A smart move, man.

00:34:40.000 Yeah.

00:34:40.000 Logan Paul?

00:34:42.000 Luke Belmar?

00:34:42.000 Well, yeah.

00:34:45.000 There's some big, big-time money there.

00:34:47.000 So it's done really well for a lot of people.

00:34:50.000 But again, it's been gentrified.

00:34:54.000 So there's this pull on the island where once you get an area gentrified, it jacks up the real estate prices.

00:34:59.000 So a lot of people in the mainland, they're going to Orlando because they can't afford to live there and buy a property anymore.

00:35:05.000 So it's becoming something like a Hawaii or something like that.

00:35:08.000 So there's kind of that political uprising in there about that.

00:35:13.000 We got some chats real quick?

00:35:14.000 Yeah, yeah, we can.

00:35:16.000 Okay, so we got here...

00:35:18.000 Arshad Khan.

00:35:19.000 Arshad goes, I love you guys.

00:35:19.000 I'm a multimillionaire businessman with my brother from Georgia.

00:35:24.000 We own extended...

00:35:26.000 Oh, hold on.

00:35:27.000 Extended state hotels.

00:35:28.000 Okay.

00:35:28.000 And have about 1K rooms, event halls, etc.

00:35:31.000 I just ended a relationship with my second woman because you can't fix modern Western women. 1.00

00:35:37.000 Okay.

00:35:39.000 We got DZA says, he goes, hi FNF, quick advice, I'm 25 and I work two full-time jobs and just paid off my 18k car in two years and I have 8k saved up after and would like to have more free time from one of these full-time jobs to network more.

00:35:56.000 Any advice on which move I should make now?

00:36:00.000 $25,000.

00:36:01.000 Yeah, bro.

00:36:02.000 Good job on paying off your car.

00:36:04.000 I mean, listen, people's main expense is where you live and where you're car as well.

00:36:09.000 Car debt especially is going to be high, so good job on that.

00:36:12.000 Networking itself, bro, you want to be in a major city where there's actually access, a lot of groups going on.

00:36:16.000 I would say like Miami, Texas, even Vegas as well.

00:36:20.000 So find a local area that's good for you, depending on what you're doing.

00:36:23.000 Like, for example, let's say you're doing real estate.

00:36:25.000 Meetup.com in your local area.

00:36:26.000 Find that meetup group.

00:36:27.000 Go over there.

00:36:28.000 Go to different events on Facebook.

00:36:30.000 Whatever you can find in that area for whatever your expertise is, go do that as well.

00:36:33.000 But again, major cities, Texas, Miami, Vegas, New York, that's where you should be.

00:36:39.000 Yep.

00:36:41.000 Dr.

00:36:41.000 B84 says, shelter fresh.

00:36:44.000 Bro!

00:36:45.000 Tell me why I'm eating dinner, right?

00:36:47.000 At Komodo. 0.97

00:36:48.000 I look over to my left and I'm like, I know this nigga. 1.00

00:36:51.000 What? 0.92

00:36:51.000 Dr. 0.92

00:36:51.000 B84 is eating dinner right next to me on a date. 0.92

00:36:53.000 Shout out to him, man.

00:36:55.000 He says, my girl is still bugging about our Miami trip last week.

00:36:59.000 Good to see you in Komodo.

00:37:00.000 The other day when I was celebrating my 40th birthday, two years ago, my girl weren't even looking at me.

00:37:06.000 I spent the week in Miami with one.

00:37:07.000 Yeah, 20 years ago, he was a blank, invisible to girls.

00:37:11.000 Now he's doing well for himself, successful, and he's getting, you know, what he deserves, recognition.

00:37:16.000 So shout out to him.

00:37:17.000 Happy birthday, bro.

00:37:19.000 We got here.

00:37:19.000 Darfurgang says, Steve, my brother owns a commercial property.

00:37:23.000 How can I reap the benefits or tax benefits using the property for my business without him necessarily giving up ownership to me?

00:37:33.000 I mean, yeah, so the only thing you can do is rent the property from him and then take a tax deduction on your tax return for the rent if it's legitimate.

00:37:44.000 But beyond that, I don't know.

00:37:46.000 What else can you do?

00:37:51.000 That's about it, yeah, because if he doesn't want to relinquish ownership to you, then you're not going to be able to take any depreciation on it.

00:37:58.000 Okay.

00:37:59.000 Jay Hurd.

00:38:00.000 I'm a freshman in college and plan on following the accounting path.

00:38:02.000 How would you build skills, do internships, and network in the field to set yourself up for success for accounting?

00:38:09.000 So I don't know if you're interested in taking the CPA track, but definitely I would get in with a CPA firm.

00:38:15.000 I mean, they're always looking for people.

00:38:16.000 They're always hiring.

00:38:17.000 They're always short-staffed, and you're going to be exposed to a lot of things.

00:38:22.000 That's a good feather in your cap to put on your resume going forward.

00:38:25.000 So that makes you much more employable and attractive.

00:38:29.000 I would find as well the best, or I want to say the most plugged-in accountant in my area on LinkedIn.

00:38:35.000 Hit him up, if he's going to respond to you at least, and say, hey, I'm a guy looking to get into accounting.

00:38:40.000 I'm willing to learn, spend hours working for you for free.

00:38:43.000 Would you mentor me?

00:38:44.000 I mean, you don't even have to do that.

00:38:46.000 There's a lot of CPA firms that'll take you and, you know, you could just do like, you know, like run to the post office, answer the phones or just do like just very basic stuff, fill out organizers or things of that nature where you can get your foot in the door.

00:39:00.000 They're always looking for people to help out in the office because we're busy.

00:39:03.000 That's good.

00:39:03.000 Water Dragon says, question, what is the time limit to go from, this is a good question, sole proprietor to LLC and same from LLC to S-Corp?

00:39:12.000 So it is up to 24 months.

00:39:15.000 If you go to my bio in my Instagram, I got the A to Z LLC to S-Corp and it walks you through step-by-step with videos in there and everything on how to do that.

00:39:25.000 And we did a whole episode on this. 0.99

00:39:27.000 If any of you guys are watching this podcast right now and you're an S-Corp, You're a sole proprietor, you're an LLC, you're fucking up. 0.96

00:39:34.000 You need to switch over and become an S-Corp immediately. 0.67

00:39:37.000 The only time it should even be an LLC, correct me if I'm wrong, is if it's a real estate property, right?

00:39:42.000 Yeah, because we talk about it all the time.

00:39:44.000 Because you're going to wind up filling out, it's called the Schedule C of your 1040, that's the most audited form in the IRS. It's the number one audited form.

00:39:51.000 And also you're going to be winding up to pay whatever profit you...

00:39:56.000 Declare on that on that Schedule C is going to be subject to 15.3% self-employment tax.

00:40:02.000 Then you got to pay ordinary income tax on it.

00:40:04.000 Bam! 0.98

00:40:05.000 So you're getting like double tax.

00:40:06.000 Yeah, it's it's it's steep.

00:40:08.000 So you know, so all you guys, you need to switch over to an S Corp immediately. 0.99

00:40:12.000 You know, you guys that have a just a simple LLC or sole proprietorship, you're fucking up man. 0.98

00:40:15.000 You need to switch on over to an S Corp immediately. 0.60

00:40:18.000 Yeah, if you've got a $50,000 profit, On that, that's a $7,500 savings right off the bat just by doing that.

00:40:24.000 Wow.

00:40:24.000 $7,500 on a $50,000 profit.

00:40:26.000 That's another question I know they would ask.

00:40:27.000 How much do I need to earn per year to switch over to an S-Corp makes sense?

00:40:31.000 Anywhere between $40,000 and $50,000.

00:40:32.000 Once you hit your net, your net profit, once you take your income, take all your expenses out, if your net is around $40,000 to $50,000, then you should be an S-Corporation.

00:40:40.000 Wow.

00:40:41.000 Not gross.

00:40:42.000 Not gross.

00:40:43.000 So if you're actually netting it and that's what you're getting, okay, $40,000 minimum?

00:40:48.000 $100,000 in income.

00:40:50.000 I have $50,000 in expenses and everything with my car, my rent, and whatever, whatever expense you have for your business.

00:40:56.000 And my net profit is $40,000.

00:40:58.000 They need to be an S-Corp.

00:40:59.000 An S-Corp, yeah.

00:41:00.000 Okay.

00:41:01.000 All right.

00:41:02.000 Nigel Cardoza goes, hey, Steve, is accounting still a good career to get into in 2024?

00:41:08.000 Where is the best place to start and how can you progress from zero to 100?

00:41:12.000 Thanks, FNAF. Good question.

00:41:14.000 Yeah, become a tax professional and learn about crypto.

00:41:17.000 This is where the future of finance is right here.

00:41:20.000 That's how you diversify yourself as an accountant.

00:41:22.000 You're going to need a lot of help doing that.

00:41:24.000 There's actually even people that are just, they're not even like true tax professionals.

00:41:28.000 They just know how to go in and calculate all of the gains and losses and figure out what's like, put a report together for accountants.

00:41:35.000 They're putting these services together and that's all they focus on.

00:41:38.000 They're making the business out of it.

00:41:39.000 Gotcha.

00:41:40.000 That's how big it's becoming.

00:41:41.000 Okay.

00:41:42.000 Versus if you're an accountant and you can do it yourself.

00:41:45.000 Right.

00:41:46.000 And understand it, yeah.

00:41:48.000 There's people that are just like, okay, this is a little niche.

00:41:51.000 I'm going to focus in on this.

00:41:54.000 We need help with that.

00:41:56.000 I don't have time to go out and download people's wallets and hook them together and check everything.

00:42:02.000 This is something that either they have to do and bring to their accountant or they have to get somebody to help them do it.

00:42:07.000 Wow.

00:42:08.000 Okay.

00:42:08.000 If I was a CPA, I would just hire them to work for me.

00:42:11.000 Shoot. 0.99

00:42:11.000 That's what I told them. 0.99

00:42:12.000 I got a couple guys that's like, look, in my group, they're like, if you guys can learn this and master this, you will be like, this is, you know, the firms are going to be looking for people like you.

00:42:21.000 Wow.

00:42:21.000 Until the software and the interfaces become more integrated and, you know, maybe there's like an over layer of like, you know, like they're trying to come out with a couple of these, they call them like interoperable, like they can layer on all the chains and bring all the data in.

00:42:37.000 And you guys see it's official.

00:42:38.000 It's officially on the tax form now.

00:42:40.000 So it's like...

00:42:41.000 They're not messing around anymore.

00:42:42.000 Now it's actually...

00:42:43.000 This is the first year that it's on the...

00:42:44.000 2023 is the first year it's been on the tax form.

00:42:47.000 So...

00:42:48.000 All they had...

00:42:49.000 I might have mentioned it.

00:42:50.000 The Operation Hidden Treasure, right?

00:42:51.000 That was like 2020, right?

00:42:53.000 So, like, think about it.

00:42:55.000 Last year and maybe like 2022 and 2023, the market was down, right?

00:43:00.000 So a lot of these guys...

00:43:02.000 That now, like, they were, like, IT, right, is, like, a soft spot.

00:43:06.000 Like, there's a lot of unemployed IT guys.

00:43:08.000 Yeah.

00:43:08.000 So the IRS can pick up this talent.

00:43:11.000 And they started, like, when the market was down, they were picking up this talent.

00:43:14.000 And now they're putting them to use as IRS on-chain analyzers.

00:43:21.000 They're basically crypto auditors almost.

00:43:22.000 Basically, they're just doing, like, on-chain analysis and gathering data and putting things together and figuring out, like...

00:43:28.000 Wow.

00:43:28.000 Yeah.

00:43:29.000 When do you...

00:43:30.000 Would you say, I mean, obviously this is the first year they're rolling it out, so there's always going to be kinks or whatever, but would you say within the next five to ten years, if people don't appropriately, I guess, declare their crypto for tax purposes, they're pretty much going to be in a situation where the IRS will be in a position to come after you?

00:43:48.000 Yeah, so what they did with Coinbase, there was a case where they could just go in and basically, it's called a John Doe, they'd send a John Doe letter.

00:43:55.000 So what the IRS was doing was, what Coinbase viewed it as, was like a fishing expedition.

00:44:01.000 So they were trying to send out, like, oh, give us the name of all the people that are on your exchange.

00:44:07.000 Because they wanted to see if they were looking at their 1040 to see, oh, are you reporting?

00:44:12.000 Marrying it up, yeah.

00:44:13.000 And then they fought it, but they lost.

00:44:15.000 They lost that case.

00:44:16.000 They went to the Supreme Court and they lost.

00:44:17.000 Do you think they'll be able to...

00:44:19.000 Yeah, they're going to strong arm these...

00:44:21.000 And these chains want to stay in business, right?

00:44:26.000 It's about money.

00:44:27.000 So they're going to do whatever it takes to comply.

00:44:28.000 So they won this time.

00:44:30.000 Yeah.

00:44:30.000 But...

00:44:31.000 IRS can come back again, try it again, and they can keep trying.

00:44:34.000 There's a big case right now.

00:44:36.000 And it was a young guy.

00:44:37.000 He's a Russian developer.

00:44:39.000 So he wrote this program called Tornado Cash.

00:44:41.000 It was a mixer wallet.

00:44:42.000 And the Dutch government basically now has indicted him.

00:44:46.000 Now this case is going on.

00:44:47.000 So they're saying this guy is responsible for $1.2 billion worth of money laundering and transactions.

00:44:58.000 Because people utilize the service.

00:44:59.000 But all he did was write the computer code and then release it.

00:45:04.000 So now they're saying, well, you should have known that these transactions were like money laundering transactions.

00:45:08.000 They got identified as money laundering transactions.

00:45:10.000 So now they're prosecuting him.

00:45:13.000 He's pleading not guilty.

00:45:14.000 He's going to fight the case.

00:45:15.000 But, you know, computer code is like, in our law, in our common law in the United States, it's protected under freedom of speech, right?

00:45:23.000 So you can write computer code.

00:45:25.000 So that's all he did.

00:45:26.000 It's just a tool that anybody can use.

00:45:28.000 It's a public mixer.

00:45:31.000 The Mixer wallet is a very useful tool to have in crypto because there needs to be a way for business-to-business, B2B transactions, or let's say at some point you're going to start paying your employees in crypto.

00:45:43.000 You need a way in order to pay those employees where people can't track it on chain.

00:45:49.000 And figure out how much you're getting paid and how much he's getting paid and how much I'm not getting paid.

00:45:54.000 Yeah.

00:45:54.000 Or how much you paid for a certain...

00:45:56.000 Like, these transactions need to have some sort of, like...

00:45:59.000 Mixer wallets are useful in that regard, obviously.

00:46:02.000 But then you have, you know, the nefarious actors using it for...

00:46:07.000 Of course. 0.98

00:46:07.000 They're fucking up for everybody. 0.98

00:46:08.000 Yeah, so... 1.00

00:46:09.000 Damn, okay. 0.99

00:46:10.000 So, I mean, so the governments are clearly cracking down, man. 0.98

00:46:13.000 So, guys, you know, obviously this is stuff that's very important so you don't find yourself in a pickle.

00:46:18.000 What do we got?

00:46:19.000 Alex Scott?

00:46:19.000 Hello, guys.

00:46:20.000 Big fan.

00:46:21.000 I have a question for Steve.

00:46:21.000 I have a Schedule K-1 form 1065 from some investments.

00:46:26.000 I use FreeTaxUSA for my software, but there is no section to file that form.

00:46:30.000 How to file this?

00:46:32.000 Yeah, so I don't know what...

00:46:33.000 So...

00:46:36.000 So on there, on that form, you're going to have, you know, boxes and telling you where you got to put it.

00:46:41.000 So, you know, there's going to be like regular rental income, you could have interest, you could have dividends.

00:46:47.000 So wherever you could align those two on your tax return, so wherever interest goes, you're going to put that amount there as interest.

00:46:55.000 And wherever dividends goes, you're going to put that amount there as dividends.

00:46:58.000 If you have a capital gain, Things of that nature.

00:47:00.000 So you're going to see those boxes on your K1. If you don't have the actual input screen on that software, it sounds like probably a rinky-dink software that only handles a W2 maybe at the most or something like that.

00:47:13.000 So you might have to upgrade your software to have a data entry that handles the K1. Gotcha.

00:47:22.000 Trigger Don goes, if I have a MetaMask wallet and receive payments in crypto, ETH, or BNB, is that subject to tax?

00:47:29.000 Absolutely.

00:47:29.000 That's a great question.

00:47:30.000 Yes.

00:47:31.000 Anytime you receive any, that's money that you're receiving for your rentals.

00:47:35.000 So that goes under rental income.

00:47:37.000 So that's what's construed.

00:47:38.000 That's not a cap gain.

00:47:39.000 Oh, wow.

00:47:40.000 Really?

00:47:41.000 Yep.

00:47:41.000 And it's valued at the time it drops in your wallet and you get it.

00:47:45.000 You have to value it at that time.

00:47:47.000 Then you have to deal with, if that goes up, So let's say, you know, I drop you some Bitcoin, and it's at 65,000 a coin, and then it goes up to 70,000, you know, you're hanging on to it.

00:47:59.000 So now you got this, you received the rental income, right?

00:48:03.000 But then now it's at 70, now you have a cap gain of 5,000 on top of that.

00:48:07.000 That doesn't happen with U.S. fiat, like, you know, currency when you get, you know, that just, they pay you and you put it in your Bank of America account because it's flat, right?

00:48:16.000 There's no up and down.

00:48:17.000 There's not volatility in that.

00:48:18.000 So that's the difference with crypto.

00:48:20.000 So you have that little nuance with the crypto.

00:48:23.000 Wow. 1.00

00:48:23.000 Damn, niggas be taxing. 1.00

00:48:24.000 Yeah. 1.00

00:48:25.000 Wow.

00:48:26.000 That's crazy.

00:48:27.000 I think the biggest takeaway from this is that it's not a taxable event just when you pull the money out.

00:48:32.000 It's a taxable event.

00:48:34.000 For swapping.

00:48:35.000 All that stuff.

00:48:36.000 On a wallet. 1.00

00:48:37.000 Damn. 1.00

00:48:37.000 Okay, swapping. 1.00

00:48:38.000 It's getting airdrops.

00:48:40.000 That's another one.

00:48:41.000 Airdrops are big. 0.94

00:48:42.000 So a lot of these Veeam coins and these people, you can have these wallets out there where you're getting all these airdrops of coins and stuff like that.

00:48:50.000 If you don't go out and claim them, then they're not really yours.

00:48:53.000 But if you go and, like, there's a process to claim these airdrops, and then once you claim these, then you have to recognize the value of that as receiving, like, income, whatever value that was at the time you got the airdrop or you claimed it.

00:49:08.000 Okay.

00:49:10.000 What do we got here?

00:49:11.000 Coform 2019 sales 2020.

00:49:14.000 Haven't filed taxes because not sure to file a self-exempt employed or S-Corp.

00:49:20.000 Ups and downs with the food truck and the LTD on cash flow at the time of an account.

00:49:26.000 Cash flow on point since 2023.

00:49:29.000 Damage not filing.

00:49:31.000 Reform to elect as S-Corp.

00:49:33.000 Man, you did a whole bunch of...

00:49:35.000 That's business jargon.

00:49:37.000 Yeah, so I'm assuming it's a company.

00:49:39.000 He said something about being an S-Corp.

00:49:42.000 So I'm assuming you're probably an S-Corp or maybe want to be.

00:49:45.000 2019 is a little old, despite that window's already passed if you're not.

00:49:48.000 So then you're going to be forced to put it on your Schedule C. But yeah, so...

00:49:53.000 What did he say?

00:49:55.000 He said he hasn't filed taxes because he's not sure if he should file a self-employed or S-Corp, ups and downs in the food truck.

00:50:04.000 I think he means a sole proprietor, right?

00:50:08.000 A sole proprietor?

00:50:08.000 Probably, yeah.

00:50:09.000 Yeah, but the problem is 2019, 2020, you're already too late to go back and make an S-Corp if you haven't already.

00:50:16.000 If you have, then you get them filed.

00:50:19.000 Now you're going to have late filing fees because of your subchapter S, which could be in the thousands.

00:50:25.000 But like I said, you could at least for the 2019, you can get that one waived, but the 2020, you won't.

00:50:33.000 Send that question in again, please, so it makes sense.

00:50:35.000 It doesn't really make sense, so we can properly answer it.

00:50:40.000 I'm Sonar.

00:50:41.000 Yeah, I'm Sonar.

00:50:42.000 Hi there, question for Steve.

00:50:43.000 I'm joining Big Four Audit later this year.

00:50:46.000 Do you think this is a good early career path?

00:50:49.000 I know you're in the tax, though.

00:50:51.000 Yeah, so I worked for KPMG. They still exist.

00:50:54.000 They're one of the big guys.

00:50:55.000 Yeah, that's a great...

00:50:57.000 I equate it to a finishing school.

00:51:01.000 You'll learn proper business etiquette, how to speak, how to carry yourself, how to write.

00:51:06.000 Very well in a business manner.

00:51:09.000 And how to be in big companies.

00:51:12.000 Hopefully you get put on big audits where you're rubbing elbows with some high executives, CFOs and controllers and things of that nature.

00:51:22.000 So definitely that's a great path to take.

00:51:27.000 All right.

00:51:28.000 Bullish on me.

00:51:29.000 And just so you guys know, we upped it to 20, but get your questions in and we'll answer them.

00:51:34.000 Hi there.

00:51:34.000 Okay.

00:51:35.000 He goes, I day trade the futures market and do e-commerce.

00:51:39.000 Is there a way to set up both separate businesses under one entity?

00:51:42.000 If so, what?

00:51:43.000 If not, would I just do two separate escorts?

00:51:46.000 Yeah, just do two separate.

00:51:47.000 That's like being a plumber and a stockbroker.

00:51:52.000 I don't know why people do that stuff.

00:51:54.000 Okay.

00:51:55.000 That's that flow.

00:51:56.000 He goes, I'm a 1099 cable contractor.

00:51:59.000 I have a balance of $130,000 that I haven't paid, and I have to file again this year.

00:52:05.000 Is it a problem if I don't pay for a bit getting it together?

00:52:07.000 Yeah, so you could do an installment sale.

00:52:09.000 $13,000.

00:52:10.000 Oh, yeah.

00:52:11.000 So, yeah.

00:52:12.000 So you're under that threshold.

00:52:13.000 I think it's like either $15,000 or $25,000.

00:52:15.000 Yeah, so you can set up an automatic...

00:52:18.000 Payment plan with the IRS. You just go on, just Google, like, IRS payment plan, and just make sure you're on the IRS government website.

00:52:25.000 You can set up a payment plan for that.

00:52:27.000 If you're under 25K? I think it's 25K. Don't quote me on it.

00:52:30.000 I know, but I know the 13,000 falls under that.

00:52:34.000 Yeah, is that 13?

00:52:35.000 Yeah, he's 13,000.

00:52:36.000 Okay.

00:52:37.000 Yeah, so just go online, and you can do it right online.

00:52:40.000 It's an automatic approval for that dollar amount, where you just set it up as an installment, figure out how much you want to pay per month, and just do an auto-debit on there.

00:52:54.000 We got here, social, made 70k profit on social media this year, sent everything to my accountant, and you just, self-employment, ended up paying 20k taxes.

00:53:05.000 Is there a way to save any of this next year? 0.99

00:53:06.000 Damn! 0.98

00:53:07.000 Yeah, so just form an S corporation, and then your payment rails, right? 1.00

00:53:13.000 Who's paying you?

00:53:14.000 You need to give them that, like you're gonna start an S corporation, you're gonna have a tax ID number for that S corporation now.

00:53:20.000 And you need to set up your payment rails in that new EIN number and new name of that corporation.

00:53:27.000 And then you have to have a new bank account, obviously. 0.96

00:53:30.000 So it's kind of a pain in the ass, but it's obviously going to save you a ton of money if you're paying that much. 0.97

00:53:35.000 Yeah, so he got you. 0.99

00:53:36.000 And a lot of these guys, they don't have time to tell you this stuff.

00:53:39.000 They're so busy.

00:53:40.000 They're not going to sit there and spend the time. 1.00

00:53:41.000 They're going to be like, fuck it. 1.00

00:53:43.000 Dude, you owe this. 1.00

00:53:44.000 I got to go to the next one.

00:53:45.000 That's typically how these guys are.

00:53:47.000 I've worked for different firms.

00:53:48.000 Yeah.

00:53:49.000 I used to feel bad.

00:53:50.000 Every time I have one of my clients that gets hit with a tax bill, I don't want people paying any more taxes than they have to.

00:53:56.000 Especially when it's a big one and they didn't see it coming.

00:53:59.000 Pay the tax that you owe to make sure you're doing things right and you're not evading tax evasion.

00:54:06.000 But I hate to have people pay taxes.

00:54:10.000 I detest that. 1.00

00:54:12.000 Because your money's better in your pocket spending it the way you see fit, not the way these idiots in Washington, D.C. are doing. 1.00

00:54:20.000 What if I have a Roth IRA and I decide to trade within my IRA? That's great. 1.00

00:54:25.000 Yeah, so you could do like a self-directed Roth IRA. That's a big option.

00:54:29.000 Now, the only thing, a lot of these guys are young.

00:54:31.000 They're not retirement minded.

00:54:32.000 No, they want access to that money.

00:54:34.000 Are they going to wait until they're 59 and a half to pull it out and use it to buy that Lambo or to buy that house?

00:54:40.000 So that's the thing that you've got to figure out.

00:54:42.000 So maybe take a portion of that and put it under there so you grow that as a retirement savings.

00:54:46.000 A lot of these guys are short-sighted.

00:54:50.000 They don't think in those terms. 0.96

00:54:52.000 I think when you start saying 401k and you start saying IRA and SEP and all this crap, these younger guys, they don't think.

00:55:00.000 They're thinking, no, I want to get that car.

00:55:01.000 I want to get that house.

00:55:02.000 I want to take, you know.

00:55:04.000 I can relate.

00:55:05.000 Yeah.

00:55:08.000 Oh boy.

00:55:09.000 That was sweet.

00:55:10.000 What's next here?

00:55:11.000 We've got some chats here.

00:55:13.000 Alright.

00:55:14.000 Can you enlarge that for me, man?

00:55:15.000 I can't see.

00:55:15.000 Ms.

00:55:16.000 Deula.

00:55:17.000 She says, with an S-Corp, how do you ensure you do anticipate how much taxes by year end?

00:55:22.000 I have an accountant and paid quarterly taxes last year, but this year my taxes were surprisingly high due to a good year.

00:55:28.000 How do I make work, I think it means, how do I make it work so it's not a surprise how much I owe on distributions?

00:55:34.000 So you shouldn't owe anything on distributions.

00:55:36.000 Again, this is kind of offboarding your crypto too, right?

00:55:38.000 So you measure your taxable income based on the income you have, the expenses you're going to have support for in your return, and whatever that net profit is.

00:55:47.000 That flows on your 1040 from your S Corp, and then you pay taxes on that.

00:55:52.000 It doesn't matter if you keep all that money in your bank account, or you drain it all and you go on a shopping spree.

00:55:58.000 You taking money out of your account is not a taxable event.

00:56:02.000 Those are distributions.

00:56:04.000 And guys, these are chats from Castle Club, so if you want to be able to get involved in a show at a lower cost, it's $20 to join CastleClub.tv, man.

00:56:11.000 You get your questions asked like this.

00:56:12.000 So it does save you a bunch of money in the long run if you want to super chat.

00:56:15.000 But it looks like her accountant set her up on...

00:56:17.000 I don't know if this is a girl or not, but...

00:56:19.000 Quarterly?

00:56:21.000 But yeah, so what they do is like, and I do it for my clients, so it's based on what, like again, it's called like the safe harbor rule.

00:56:28.000 They're going to set you up for, they'll take 110% of your prior year, cut it up to four for each quarter, and then you pay in your vouchers every three months on that.

00:56:37.000 Clarifies in the next check.

00:56:38.000 Okay.

00:56:39.000 I also have an S-Corp 1099.

00:56:41.000 Okay, just follow up.

00:56:42.000 1099 in healthcare.

00:56:43.000 Do I have to register and pay multiple state taxes?

00:56:46.000 Different accountants seem to do different things.

00:56:48.000 Register for some and not register others.

00:56:52.000 So it sounds like she's a traveling healthcare professional?

00:56:57.000 Yeah.

00:56:57.000 In multiple states?

00:56:58.000 Probably.

00:56:59.000 That makes the most sense.

00:57:01.000 Yeah, because what happens is it's called nexus.

00:57:04.000 So when you're physically going to that state, so let's say you're from Florida and you go up to New York and you're physically in that state, whether you're still being paid at a 1099, Technically, you have Nexus in there.

00:57:17.000 But it depends on what they file, though.

00:57:20.000 If the IRS doesn't go to the state jurisdiction when they do the 1099, then you probably can escape the filing requirement on there.

00:57:29.000 I wouldn't like...

00:57:30.000 Just go, okay, I worked on it.

00:57:32.000 Technically, that state does have...

00:57:33.000 It's called nexus over you because you're...

00:57:35.000 You worked in their state.

00:57:37.000 Yeah, but you're really kind of like not registered.

00:57:39.000 You just get the federal 1099 and nothing on the state side because it's not like a W-2 where they have to file New York State on the W-2.

00:57:46.000 With the 1099, there's really no, like, I got to file a form with the 1099 New York, you know, jurisdiction, New York State Tech Department.

00:57:54.000 So they probably don't.

00:57:56.000 So...

00:57:58.000 I personally, yeah.

00:57:59.000 That's on the employer, I guess, right?

00:58:00.000 Yeah.

00:58:00.000 She has to ask her employer and figure out?

00:58:02.000 Yeah, so she's probably just getting a federal. 0.52

00:58:04.000 Just put it on your federal and keep it on there.

00:58:06.000 And then whatever jurisdiction you're in statewide, obviously you're going to have to adhere to that.

00:58:10.000 Okay. 0.96

00:58:11.000 Yeah, so I wanted to create all these other filings with a nexus and all that shit.

00:58:14.000 There's no filing on the state.

00:58:16.000 Only when it comes to W-2 do you have to really worry about that.

00:58:19.000 Okay.

00:58:19.000 Wait, is she in healthcare?

00:58:22.000 We're assuming.

00:58:23.000 We don't know.

00:58:23.000 It sounds to me she's kind of like a...

00:58:25.000 Is she a nurse? 0.95

00:58:26.000 Yeah.

00:58:26.000 She's probably like a traveling nurse.

00:58:28.000 There we go.

00:58:30.000 All right.

00:58:31.000 Hey, I have a $10,000 crypto and what type of taxes should I expect and how to avoid?

00:58:37.000 What is capital gains tax and gas price?

00:58:39.000 Please explain.

00:58:41.000 So...

00:58:42.000 If you onboard and you buy Ethereum and you haven't done anything with Ethereum, you didn't swap it for another coin, you didn't trade it, you're just sitting on it, you have what's called unrealized gain.

00:58:54.000 So that's not a taxable event.

00:58:55.000 So that's like if you buy it and just let it sit on the coinbase like most people do.

00:58:58.000 Yeah, not until you swap that for something else.

00:59:03.000 So based on that question, it sounds to me like it's an unrealized.

00:59:09.000 So there's no capital gain yet.

00:59:11.000 Can you explain?

00:59:12.000 He doesn't know what a capital gains tax is and gas prices.

00:59:15.000 Can you explain that to me?

00:59:16.000 So capital gain is I buy Ethereum for $1,500 and it goes up to $3,000.

00:59:23.000 Now I have a capital gain of $1,500.

00:59:25.000 Okay.

00:59:26.000 Right?

00:59:27.000 But it's unrealized.

00:59:28.000 It's not until I... If I swoop it for another coin...

00:59:32.000 Or cash out.

00:59:33.000 Or cash out, yeah.

00:59:34.000 Okay.

00:59:35.000 And capital gains can also be you buy a house and you sell it.

00:59:38.000 There's capital gains tax on that.

00:59:40.000 Right, because it appreciated and you sold it for more than you bought it for.

00:59:44.000 The tap gain is based, when you buy it, it's called your cost basis, right?

00:59:49.000 So in capital gains, there needs to be appreciation in it.

00:59:51.000 Appreciation in it, yeah.

00:59:52.000 Okay.

00:59:53.000 If I didn't claim my crypto, should I claim it now?

00:59:57.000 Oh, and gas prices, what he wants to know.

00:59:59.000 Gas price is probably talking about the Ethereum gas price.

01:00:03.000 Anytime you swap or do any transaction on any blockchain, whether it's Solana, whether it's the Bitcoin Lightning Network, or it's the Ethereum network, you have to pay A fee in the transaction of that layer one token.

01:00:19.000 So in Ethereum, it's called, they call it GWAY. It's freaking weird.

01:00:22.000 It's like these nerds that came up with this weird stuff.

01:00:26.000 So they call it GWAY. So that's the Ethereum fractional.

01:00:30.000 It's like you have a Bitcoin, it's caught up in Satoshis, right? 0.98

01:00:34.000 So the Ethereum is caught up in GWAY. Gotcha.

01:00:40.000 Arigato.

01:00:40.000 If I didn't claim my crypto, should I claim it now in my tax problem?

01:00:44.000 I already put it in my taxes.

01:00:45.000 Also, how do I sell my crypto with little taxes?

01:00:49.000 So if, okay, if I didn't claim my crypto, should I claim it now in?

01:00:53.000 Yeah, so I mean, it depends on the dollar amount.

01:00:56.000 You know, I would have to have no more information, you know.

01:00:58.000 I would say if it's only a few hundred, if you're talking a couple few, like 10,000, 11,000, I would like that, you know, I'd have to look at the greater picture of all the other sources of income that you have so you don't get killed.

01:01:10.000 But, you know, you could probably, like, it depends on the dollar amount.

01:01:14.000 So that's a hard question to answer without any, like, specific numbers.

01:01:19.000 Okay.

01:01:19.000 Yeah.

01:01:20.000 All right.

01:01:21.000 Ken Rose says, evening crew, evening Mr.

01:01:23.000 Clone.

01:01:23.000 If I were to take a profit in crypto and first apply the entirety of it towards my student loan and or my car loan, would I be able to write it off as a tax deduction?

01:01:31.000 No, because those are just loans.

01:01:32.000 Yeah.

01:01:33.000 So when you got the loan, you didn't declare it as income.

01:01:35.000 When you pay it off, you don't declare it as a deduction.

01:01:38.000 Ooh.

01:01:38.000 That's how it works.

01:01:41.000 CryptoGlory says, should I make my brother a legal renter of my primary residence?

01:01:45.000 I also live there too.

01:01:46.000 What type of tax benefits could I receive?

01:01:48.000 He has a long-term renter for sure.

01:01:49.000 What would you do in my position? 0.99

01:01:51.000 Be a bum like Chris. 0.98

01:01:54.000 Because I guess his brother probably pays him rent. 0.95

01:01:56.000 If you guys get along, then yeah, you do it.

01:01:58.000 But if you get along and then you get in a fight and you want to kick him out, then he's going to squat on you. 0.83

01:02:03.000 He's a squatter!

01:02:04.000 You're going to turn into Leo.

01:02:08.000 Show those off!

01:02:11.000 That's what he's going to tell you.

01:02:12.000 So make sure you guys get a lot, bro.

01:02:15.000 G Bargo's made a $300K last year as a W2 employee, opened an LLC, but still have to pay over $13K in taxes, and they take 35% down each month from my commission check.

01:02:26.000 Holy!

01:02:26.000 How much to avoid higher taxes, the LLC is for my rental.

01:02:29.000 Holy!

01:02:31.000 So I don't know if you're positioned to become a 1099 employee with that 300K. Probably sounds like you might not be able to do that.

01:02:41.000 So if you purchase a property, you could take what's called depreciation and you could do a cost segregation study on your property and you could get a massive amount of depreciation in the first few years.

01:02:56.000 You can get up to it.

01:02:57.000 I wouldn't quite declare you a real estate professional.

01:03:01.000 But you can probably take up to a $25,000 loss maximum on there.

01:03:06.000 And being a real estate professional helps a lot for tax purposes, guys.

01:03:09.000 It's huge.

01:03:10.000 Yeah.

01:03:11.000 What does one need to become...

01:03:13.000 I know you labeled me as one, but...

01:03:15.000 It's hours, so you have to demonstrate and then you have to determine that you actively participate in it, that you're involved with managing and doing the leases and renting them out.

01:03:25.000 Hours, yeah.

01:03:25.000 So there's a whole...

01:03:28.000 And they're pretty strict on it, so you go through.

01:03:31.000 So we did that with you.

01:03:32.000 Having a real estate license or a broker license too is another good indication that you're a real estate professional as well.

01:03:38.000 That might be worth it then in that case.

01:03:39.000 Because I've always said you don't need a realtor license at all to be an investor.

01:03:43.000 It's a waste of time.

01:03:44.000 But for that purpose, because getting designated as a real estate professional for tax purposes saves you so much money that it might be worth your time to get that real estate license.

01:03:53.000 Right.

01:03:53.000 Okay.

01:03:55.000 And then does the amount of properties you have...

01:03:57.000 Not really.

01:03:57.000 No.

01:03:58.000 No?

01:03:58.000 Yeah.

01:03:59.000 You could have one.

01:04:00.000 You could have two.

01:04:01.000 Yeah.

01:04:01.000 Okay.

01:04:02.000 So it really comes down to more hours.

01:04:03.000 Correct.

01:04:04.000 But having more properties will allow you to be like, well, I spend this amount of time because I have this many.

01:04:08.000 It's like they look at it like, okay, what's your main thing?

01:04:10.000 Are you doing like a, you know, obviously you're $300,000 a year W-2 wage.

01:04:14.000 That's your main job.

01:04:15.000 So it's going to be pretty hard for you to substantiate that you're doing something greater than that.

01:04:20.000 Okay.

01:04:20.000 Yeah.

01:04:20.000 Okay.

01:04:21.000 All right.

01:04:22.000 What else do we got here?

01:04:24.000 Fredo Mauricio said, I make 70k a year at a job.

01:04:27.000 Won 100k last month playing a poker tournament.

01:04:30.000 Can I open an LLC and file as a poker professional?

01:04:32.000 Also, can I invest in real rental properties to avoid paying a hefty tax? 0.99

01:04:36.000 Goddamn, this dude tried to find a way to finesse. 0.96

01:04:39.000 I mean, it makes sense. 0.98

01:04:41.000 You're going to be at $100,000 last month playing at the poker tournament.

01:04:44.000 What else do you do?

01:04:45.000 Yeah, because you're going to...

01:04:45.000 So you probably have a lot of travel expenses.

01:04:47.000 I don't even get comped at these places where you're playing these, you know...

01:04:50.000 Is that a thing like with the poker players?

01:04:52.000 I don't know.

01:04:53.000 They get comped at these places like free hotel, lodging, meals.

01:04:56.000 You probably have a lot of expenses there.

01:04:58.000 So yeah, I would consider if this is something that you're making a career out of, then definitely legitimize it.

01:05:03.000 Get incorporated, become an ass corporation, and you get right off all your travel, your meals, and your lodging and all that stuff.

01:05:09.000 Any expenses that you're incurring to make it to these tournaments. 1.00

01:05:12.000 Shit. 0.99

01:05:13.000 Okay. 1.00

01:05:14.000 Alright.

01:05:14.000 Wait, so question.

01:05:15.000 If I make money off of, let's say, gambling, I make profits, is that going to be...

01:05:19.000 How is that taxed?

01:05:20.000 Yeah, so you get a 10...

01:05:21.000 These casinos, over $600, they're going to have to issue you a 1099.

01:05:25.000 So a lot of my clients, they go to Hard Rock or whatever, and they...

01:05:29.000 They'll win and stuff like that.

01:05:31.000 So then you have to declare those as income.

01:05:33.000 Oh, you have to.

01:05:34.000 Yeah, but see what the IRS did, you used to be able to declare, like a lot of these guys, like you could have been even because they lose just as much as they win.

01:05:42.000 And then at the end of the year, you tally everything up.

01:05:44.000 And then you used to be able to deduct that right off of like the actual winnings.

01:05:49.000 Now you have to go and put it on a itemized deduction as your losses.

01:05:54.000 You put that on the itemized deduction.

01:05:56.000 And the problem with that is you can't really hit the threshold to go over the standard deduction to be itemized.

01:06:05.000 So it's almost like you just have to pick up the 1099 on the gambling winnings. 0.98

01:06:09.000 Damn. 0.99

01:06:10.000 Unfortunately, yeah. 0.99

01:06:11.000 So if I win a big parlay, I got to pay taxes no matter what, pretty much.

01:06:14.000 Yeah, because you're going to get a 1099.

01:06:15.000 The IRS is going to see it right there.

01:06:16.000 Because he was covering them by giving you the 1099.

01:06:18.000 They're saying, look, we paid this guy this money.

01:06:20.000 If you don't pay y'all, then hey, it's on him.

01:06:22.000 All right, man.

01:06:24.000 So here's what happens.

01:06:25.000 When you get K1s, when you get W2s, when you get 1099s, they have your social security number, your name, your address, and that goes on your transcript.

01:06:35.000 So they just hit a button.

01:06:37.000 So if you don't file, like I have clients that haven't filed in 10 years, right?

01:06:40.000 But what happens is the IRS says, alright, you don't want to file.

01:06:43.000 They'll give you the minimum deduction, right?

01:06:46.000 They'll put you as a single filer, give you the standard deduction, no expenses on there, and then they'll put all your income in, and if it comes out that you have taxable income and you owed, they'll wait.

01:06:55.000 But they'll file what's called a substitute tax return on you, right?

01:06:59.000 And then you get it, and it's gonna be plus penalties and interest, and it's gonna be big, right?

01:07:05.000 So it's gonna be maybe three times of what you originally would've owed.

01:07:08.000 Because they got the 1099s from these other entities that proved that they paid you.

01:07:12.000 Correct.

01:07:13.000 Because I had an Amish kid.

01:07:16.000 I'm going to call him Seth.

01:07:17.000 How did he even contact you?

01:07:19.000 He wrote on a mule and sent a message like...

01:07:21.000 So this guy, it's like...

01:07:22.000 His...

01:07:24.000 So, you know, these guys are like off the grid.

01:07:27.000 Yeah, yeah, yeah.

01:07:27.000 How did he even find you?

01:07:29.000 The horse, his hungry knife.

01:07:31.000 Some of them had like this special religious exemption.

01:07:35.000 I've seen it before.

01:07:36.000 I forget what the name of it is.

01:07:38.000 So this guy was working in Tennessee, and the market was going crazy.

01:07:42.000 They were doing, like, they're really good carpenters, right?

01:07:43.000 Yeah.

01:07:44.000 So he was doing all this carpentry stuff for all these developments and stuff like that, making millions.

01:07:48.000 The uncle was making millions, and the uncle was telling him, ah, don't file, don't file, don't file, don't file. 1.00

01:07:52.000 Shit. 0.93

01:07:52.000 So the IRS came after the uncle after, like, 10 years and said, okay, what I was telling you, like, he had to go, and they gave him that forgiveness program, and they had to do all the 1099s, So Seth is in Sarasota now, and he gets all these 1099s, and then the IRS did all substitute tax returns on him, 0.93

01:08:10.000 and he came out to, like, he owed, like, it was close to $200,000.

01:08:16.000 Because he had made a couple M's doing the carpentry stuff.

01:08:19.000 Yeah, so we went back, and I said, okay, let's figure it out.

01:08:22.000 He wasn't even making that much.

01:08:23.000 He could make me like $60,000 now, right?

01:08:25.000 Yeah.

01:08:25.000 So...

01:08:26.000 I was like, all right, let's do a deal.

01:08:29.000 So I filed all the returns.

01:08:30.000 It came out like, you can estimate tax expenses in lieu of not having the receipts, right?

01:08:36.000 He couldn't.

01:08:37.000 I said, well, let's estimate.

01:08:38.000 Let's be reasonable.

01:08:39.000 The IRS accepted it.

01:08:40.000 So we got his bill down way down.

01:08:42.000 I got it down to like 50 grand, but he still didn't have the money to pay it.

01:08:45.000 So we did what's called an offer in compromise.

01:08:48.000 So then, what happens is, I'm like, how much money do you have in the bank?

01:08:52.000 Oh, I have six grand cash.

01:08:53.000 Okay, so you're gonna owe six grand.

01:08:56.000 How much is your house worth?

01:08:57.000 I don't own a house, I rent.

01:08:59.000 I'm like, okay, perfect.

01:09:00.000 How much is your car worth?

01:09:01.000 Eh, maybe like 10 grand in the other truck.

01:09:04.000 So I'm like, okay, so the fair market value of that, 16.

01:09:07.000 So we got his down to like maybe 17 grand, and it was called the offer and compromise.

01:09:11.000 You compromise the balance, and then we put him on a payment plan on there, and then he got it down to like 17,500.

01:09:16.000 Wow.

01:09:17.000 Yeah, it took a while to do it.

01:09:18.000 We had to do it in stages, but that's how you do it. 1.00

01:09:20.000 Talk about saving his ass. 0.99

01:09:21.000 You went from a 200K bill to 17.5 and you had to... 1.00

01:09:24.000 Wow.

01:09:25.000 Yeah, I did a lot of it because I'm a certified tax resolution specialist, so I did a lot of that work.

01:09:30.000 I knew all the ins and outs and how to put these deals together and compromise.

01:09:34.000 I don't do so much of that work anymore, but I still have the skill set for it.

01:09:37.000 Yo, imagine it's Caleb.

01:09:39.000 He's like, sell my horses.

01:09:41.000 Yeah. 1.00

01:09:41.000 Goddamn, bro. 1.00

01:09:42.000 Bruh. 0.99

01:09:43.000 Well, he made it out.

01:09:43.000 Holy man.

01:09:44.000 Thanks to you.

01:09:45.000 So I guess, dude, so like if you're getting 1099s, you better be filing your taxes because someone is reporting to the IRS that they paid you.

01:09:52.000 And then if you don't go ahead and file a tax return that shows that income from that 1099, you look bad.

01:09:58.000 That's what's going to happen with crypto.

01:09:59.000 So crypto is going to have a 1099 reporting system with all this.

01:10:02.000 It's going to come out.

01:10:03.000 And it's going to go on these people.

01:10:05.000 It's going to go on their transcripts eventually.

01:10:07.000 I'd say within five to seven years.

01:10:09.000 These big exchanges are going to start giving 1099s to the U.S. government.

01:10:12.000 Just like Morgan Stanley does.

01:10:13.000 Just like Merrill Lynch does.

01:10:14.000 Just like Charles Schwab does.

01:10:15.000 They're going to have that.

01:10:17.000 That's coming.

01:10:18.000 So they give you that 1099.

01:10:19.000 And if you don't have a mirror image of that when you fire taxes, there's going to be discrepancies and problems.

01:10:24.000 Oh, man.

01:10:24.000 All right.

01:10:25.000 Don't end up like the Amish guy, guys. 1.00

01:10:27.000 Like Caleb.

01:10:28.000 What else we got?

01:10:29.000 Steve, I've been DCA in crypto since 2017.

01:10:32.000 Never really took a profit.

01:10:33.000 Now that it's going back up, I want to take profit and buy property.

01:10:36.000 What's the smartest way to do that things, guys?

01:10:38.000 Yeah, so again, he's thinking it from like, okay, if I take money out and I off board, I'm going to have to pay taxes on it, right?

01:10:44.000 So I don't know how, you know, you DCA'd and if you held your positions, and then when you, you know, like right now it's kind of late to do any tax planning in reference to that, so you're going to have to get hit with whatever that comes out when you do your calculations.

01:10:58.000 There's not really much you can do, unfortunately.

01:11:02.000 You kind of like already made the money.

01:11:05.000 So you've got to set these things up prior to doing this stuff.

01:11:10.000 Wow.

01:11:11.000 Okay. 1.00

01:11:12.000 I mean, damn. 0.99

01:11:13.000 So let's say for example, is there no way to get around that at this point? 0.99

01:11:19.000 Well, I mean, you can set up a retirement plan, but again, we're getting to the fact that he wants to have access to that money, right?

01:11:26.000 Yeah.

01:11:27.000 Even when the real estate is...

01:11:28.000 Yeah, yeah.

01:11:29.000 I mean, I'm dealing with a guy right now that's trying to do some of that, but he's going to have to pay the piper.

01:11:34.000 We're going to calculate whatever he owes.

01:11:36.000 Okay.

01:11:37.000 He made a lot of money, so he's willing to do that, but hopefully you did, too.

01:11:42.000 I guess it's safe to say, like, if you're making money, put them to the side.

01:11:45.000 Yeah, bro.

01:11:47.000 Yeah, man.

01:11:50.000 Especially when you're getting 1099.

01:11:51.000 Yeah, man.

01:11:52.000 People don't make a finesse like, I'll be straight.

01:11:54.000 No, man. 1.00

01:11:54.000 They know exactly how much money you made because the other party that paid you was covering their ass. 1.00

01:11:59.000 Yeah. 0.99

01:12:00.000 You know what I mean?

01:12:00.000 Think of it like, hey, I bought Amazon and I bought it like $1,000, now it's up to $4,000, right?

01:12:06.000 And I want to sell it.

01:12:07.000 It's like, what can I do to save on taxes?

01:12:09.000 It's like, you made the money.

01:12:10.000 You didn't set it up as a qualified retirement account, an IRA or a Roth or something like that.

01:12:18.000 You want access to that money.

01:12:20.000 So even if you put it in a qualified retirement plan, you're going to get hit with a 10% early withdrawal penalty on it, and then you're going to have to pay whatever taxes that's on there.

01:12:28.000 So there's not really much you can do other than calculate whatever amount you're going to have on the capital gains.

01:12:36.000 I'm not going to lie, bro.

01:12:37.000 When I go to the mailbox, I see IRS, I get scared, bro.

01:12:40.000 I think about who?

01:12:41.000 Wesley Snipes?

01:12:42.000 Amen!

01:12:43.000 I'm black, bro.

01:12:44.000 Come on out to be me.

01:12:45.000 Holy.

01:12:45.000 I'm scared as hell.

01:12:47.000 All right.

01:12:47.000 So, guys, you got to set up properly, man.

01:12:49.000 Don't be... 1.00

01:12:49.000 You stupid. 1.00

01:12:50.000 Don't be an idiot, man. 1.00

01:12:52.000 Mosh. 1.00

01:12:52.000 Match goes WFNF team, mods, and CO Network on Telegram to get announcements for the show and events. 1.00

01:12:59.000 And that's the link.

01:13:00.000 Official, fresh, and fit.

01:13:01.000 Yeah, guys, that's our official Telegram.

01:13:02.000 Get in there, guys.

01:13:03.000 Get in there.

01:13:03.000 If you want the updates in real time, join that, and it's free.

01:13:06.000 You see us at our live events, shows, pinned in the comments, man.

01:13:09.000 Go check it out, man.

01:13:10.000 Really good.

01:13:11.000 What else do we got here?

01:13:13.000 Okay, Steve, what is the process when putting a car under your business, mine is currently a DBA, and bringing in 40k gross?

01:13:21.000 40k plus gross.

01:13:22.000 I'm assuming it means a year.

01:13:24.000 So the process, I mean, there's no special process.

01:13:27.000 You just tell your accountant or if you're going to do it yourself, you just list it for whatever the value is.

01:13:32.000 And then obviously you're probably using that vehicle not 100% for business.

01:13:38.000 So try to estimate like, okay, I use it for 75%.

01:13:41.000 So then whatever, like if it's a $50,000 car, you're going to take 75% of that value and then you're going to depreciate over five years.

01:13:49.000 All right.

01:13:49.000 All right, cool.

01:13:50.000 I think we got like one or two more and then we'll close out here, guys, because we got another show for y'all coming up.

01:13:54.000 Master of None says, I invested in a rental home, fixed it up, total of $150,000, and opened an LEI? LLC. For a BTM machine.

01:14:03.000 Okay, 27.5K. All using money for my trucking, S-Corp.

01:14:07.000 My account has said that those aren't tax-deductible.

01:14:10.000 Thoughts?

01:14:11.000 So I guess he had his trucking business.

01:14:13.000 He bought a rental home, fixed it up for $150K, and then he also bought a Bitcoin machine for $27.5K. My accountant said that those aren't tax deductible?

01:14:25.000 Thoughts?

01:14:27.000 Well, you invested.

01:14:29.000 In a property, so that's not taxable, but if you're going to rent it out, then you have depreciation on it, right?

01:14:36.000 And cost seg too, because you said you fixed it for 150k.

01:14:39.000 You could do a cursory, I have a book out there on cost segregation.

01:14:43.000 It's 17 bucks.

01:14:44.000 Go in there, it tells you about how to do it.

01:14:46.000 You don't have to hire, you don't have to pay a huge cost segregation company to do it.

01:14:50.000 It's $150,000 property, you can figure that out yourself.

01:14:53.000 Yeah, I don't know if the fixes are $150K or the house is $150K. Yeah.

01:14:58.000 Because that makes a big difference, right?

01:14:59.000 But still, even though, so let's say if it's below like, I don't know, $400,000 or $500,000, then just do your own cost segregation on it.

01:15:07.000 And then you get depreciation.

01:15:09.000 So you could do that.

01:15:11.000 Your accountant's probably not going to want to do that.

01:15:13.000 And then what was the other thing?

01:15:14.000 He's like a Bitcoin machine.

01:15:15.000 He bought a Bitcoin machine.

01:15:18.000 That makes money.

01:15:19.000 Basically, I have one of these things too.

01:15:21.000 Basically, people do transactions on it and then you get a percentage of every transaction that goes through your Bitcoin.

01:15:26.000 Yeah, so you're not going to have much right off there because probably somebody's handling it for you, right?

01:15:29.000 So you just get whatever the profit is.

01:15:31.000 It's kind of like a standalone thing.

01:15:32.000 Yeah, but you're just going to pick up whatever profit you got.

01:15:35.000 So that's not going to be tax deductible.

01:15:37.000 So he's right in that respect.

01:15:40.000 Okay.

01:15:41.000 What else do we got here?

01:15:43.000 How do I mitigate my tax liability working as a high-earning W-2 employee?

01:15:48.000 That's from Taj.

01:15:49.000 And then, recently won a lawsuit.

01:15:51.000 Won't be receiving 50K after a lawyer fee.

01:15:52.000 Should I use a portion to eliminate my 7K collections debt? 0.98

01:15:55.000 Damn, you got 7K collections? 1.00

01:15:56.000 Nigga, what the fuck wrong with you, man? 1.00

01:15:57.000 Yo, nigga pay one dollar. 1.00

01:15:58.000 Goddamn, man. 1.00

01:15:59.000 Nigga cheap as hell. 1.00

01:16:00.000 Yeah, what the fuck, man? 1.00

01:16:00.000 Come on, bro. 1.00

01:16:01.000 Nigga, god damn, man. 1.00

01:16:02.000 50K you won, man? 1.00

01:16:04.000 Fuck. 1.00

01:16:05.000 Or keep it untouched in use for my real estate and just work my money to pay off my debt. 1.00

01:16:10.000 Yeah, you got 7K of collections, bro? 1.00

01:16:11.000 What the fuck? 1.00

01:16:13.000 Holy. 1.00

01:16:14.000 So being a W-2 employee, you pay the highest rates.

01:16:18.000 You pay the highest rates.

01:16:19.000 There's not much you can do other than like put money away for retirement.

01:16:22.000 And you have to do like either 401k or a traditional IRA. You can't even do a Roth because Roth's not tax deductible.

01:16:29.000 That's what sucks about being a W-2 employee, guys.

01:16:32.000 This is why you don't really need an accountant when you're a regular employee and you don't have a side hustle or whatever because it's very standard.

01:16:36.000 There's not much to write off.

01:16:38.000 It is what it is.

01:16:39.000 And then he said he has $7,000 in collections and he's going to get $15,000 after his lawyer fees.

01:16:47.000 Bro, if it's in collections, that's probably significantly hurting your credit score.

01:16:51.000 And also he can call and say, hey, I only have like $3,000.

01:16:53.000 Can I pay off this amount?

01:16:55.000 And they'll take it for you.

01:16:55.000 Are you $7,000 in debt?

01:16:57.000 Are you $7,000 in collections debt? 0.99

01:16:58.000 Yeah, because if you're in collections, that means your FICO score is shit. 0.99

01:17:02.000 Yeah. 0.96

01:17:03.000 And $7,000 is not going to get you a loan and have a collection on your, so pay off the debt.

01:17:07.000 Pay off the debt, yeah, 100%, bro.

01:17:08.000 Yeah.

01:17:08.000 You got to get your credit score off.

01:17:10.000 Call them up on the phone and say, hey, listen, man, I'm going to pay this debt off.

01:17:13.000 I'm going to have three kids in my name, two kids in my name.

01:17:15.000 What can we do here?

01:17:16.000 And just so the audience understands, if it's collections debt, the way I'm understanding it and the way that you wrote it, that means that you owed money to a party.

01:17:23.000 That party couldn't get that money from you.

01:17:24.000 So they sold it.

01:17:25.000 They sold that debt to a collection company.

01:17:27.000 Your credit score got dinged significantly. 1.00

01:17:29.000 Now that collection company is over here messaging you saying, yo, pay, motherfucker. 0.99

01:17:34.000 Collection companies will negotiate, too. 1.00

01:17:36.000 They will.

01:17:37.000 They will.

01:17:37.000 Because they're only getting that, like, hey, we can get, like, you know, 20% on them.

01:17:40.000 We'll split it with the company that, you know.

01:17:42.000 Exactly.

01:17:42.000 They'll buy these debts from these companies and get pennies and a dollar.

01:17:45.000 For pennies, yeah.

01:17:46.000 So they'll negotiate, like let's say you got 7k collections, you tell them, listen man, I only got four.

01:17:50.000 A lot of times they'll take that four and be good with it.

01:17:52.000 But do it the right way that they're going to make sure they're going to pull it off your report and say that it's satisfied.

01:17:57.000 Make sure you get an email or a letter saying that it's paid off in full.

01:18:00.000 But if it's in collections, bro, you need to get rid of that immediately because you probably got like a 500 credit score.

01:18:07.000 A lot of times in the collection of companies, they'll do it, and they're like, oh, yeah, yeah, sure, yeah, we'll take it.

01:18:11.000 And then you wind up sending them the money, paying it, and then they don't take anything off your credit, and now you're screwed still.

01:18:15.000 And you're out the money.

01:18:17.000 Knock that out first, bro. 1.00

01:18:18.000 Because you won't even be able to buy a goddamn house. 1.00

01:18:20.000 You won't invest in real estate. 1.00

01:18:21.000 Yeah, try it with a fucking 500 credit score. 1.00

01:18:23.000 Bro, you ain't gonna get it. 0.99

01:18:24.000 No loans.

01:18:24.000 Sorry, sir.

01:18:25.000 They're going to be like, no, thanks.

01:18:27.000 ARTs goes, hi, Steve.

01:18:28.000 I filed a 2021 late.

01:18:29.000 Had issues submitting returns via e-file due to missing our IRS PIN. Had to mail returns in.

01:18:35.000 Penalties and interest total $3,636.

01:18:37.000 Any way to lower or eliminate first time?

01:18:39.000 So, I don't know if you were tuned in in the beginning.

01:18:42.000 So...

01:18:43.000 You're going to do an FTA waiver.

01:18:45.000 Get the notice.

01:18:45.000 There's going to be a phone number on the top, upper-hand right corner.

01:18:48.000 Call them up.

01:18:49.000 Say, hey, I want to do the FTA. The person answering the phone is trained.

01:18:55.000 They have their internal revenue manual, and they go through this little questionnaire.

01:18:58.000 They're going to ask you these questionnaires.

01:18:59.000 You're going to say, okay, you know, I filed my taxes the last three years.

01:19:02.000 I've never had any penalties before, and here's the problem in my head.

01:19:05.000 You don't even have to give them a reason, and it's an automatic FTA waiver, and you could probably get that $36,000.

01:19:11.000 If that's all penalties.

01:19:12.000 The interest, they won't get rid of, unfortunately.

01:19:15.000 But the penalties, you can get substantially lower.

01:19:19.000 So, yeah.

01:19:20.000 Do that.

01:19:22.000 Last one here from Ken Rose says, So, just to confirm, if I take profit in crypto, I should just pay the amount owed in taxes first, unless there are options to defer, and then cover my debts, school loans, car loans, etc.

01:19:33.000 credit.

01:19:33.000 Perfect.

01:19:34.000 Yep.

01:19:34.000 Do that.

01:19:35.000 There you go, Ken Rose.

01:19:35.000 See, you learned something from today's episode.

01:19:38.000 Steve, where can the people find you, man?

01:19:40.000 So you can find me, the best place on Instagram, seeing beyond the numbers.

01:19:44.000 This is a best place.

01:19:44.000 Just follow my page.

01:19:46.000 After tax season, I'm going to ramp up and try to do more as far as the social media and more educational free content.

01:19:53.000 Yeah, this is a busy summer for you.

01:19:54.000 Yeah, so I'm going to do a ton of free content, a ton of free trading on crypto, a ton of stuff that I'm building a community to.

01:20:02.000 It's kind of talking about what my son was like, You know, only 22 years old when he passed away.

01:20:06.000 So all this is in honor of him.

01:20:08.000 And this is it.

01:20:10.000 So I'm just going to give all the sauce away to the young guys because we need it.

01:20:14.000 And that's where my heart is at.

01:20:16.000 You don't learn from school, man.

01:20:16.000 Yeah, you don't learn from school.

01:20:18.000 And we definitely brought in one of the best accountants here, man.

01:20:20.000 I mean, guys, we really, man, we shouldn't even be teaching. 0.99

01:20:23.000 We're giving you guys goddamn sauce, man. 0.97

01:20:26.000 So our accountant is literally one of the best, man. 0.99

01:20:29.000 And obviously with the real estate, the podcast, fitness business, etc., you're an entrepreneur, guys.

01:20:35.000 You need an accountant like this by your side, man.

01:20:37.000 Absolutely.

01:20:38.000 And also, DM me.

01:20:39.000 I'm really good at answering my DMs.

01:20:40.000 I mean, this time of year, the next couple of weeks, I might not respond right away, obviously, but I will eventually get back to you on the DM. So I love that you guys put questions in there.

01:20:48.000 Absolutely.

01:20:49.000 Seeing beyond the numbers, guys, on Instagram.

01:20:51.000 To the best of my ability, if you provide me with the information, and if you want to do a one-on-one consult, it's a one-hour.

01:20:57.000 It's only $300.

01:20:59.000 You can charge more, man.

01:21:01.000 We'll see how it goes.

01:21:03.000 Once I start getting busy, I love doing those because it's a face-to-face Zoom, and then within an hour, we even go outside of the scope of just taxes.

01:21:10.000 Sometimes I just give them some good financial advice, some good business advice.

01:21:14.000 Put it this way.

01:21:15.000 I think this is the best way to really explain to the audience the value that you provide, and it is very simple.

01:21:22.000 Guys, when I worked for the government, I made about $120,000 per year, right?

01:21:25.000 And I paid 30 to 40k in taxes.

01:21:27.000 I worked with Steve.

01:21:28.000 I made 10x that money, obviously doing the podcast and all the other entrepreneurial ventures.

01:21:31.000 I paid right around that amount.

01:21:33.000 So I 10x my income, but I paid the same amount of taxes as when I made one-tenth of the money.

01:21:39.000 That's what happens when you've got a good accountant and you have a business and you're an entrepreneur.

01:21:42.000 You've got real estate.

01:21:43.000 So this is why guys like Steve are invaluable, especially if you're going to get into the real estate game.

01:21:47.000 Now, crypto as well is in your repertoire?

01:21:49.000 Yeah.

01:21:50.000 I've been doing that for like the past four years.

01:21:52.000 Yeah, because like I said, I teach in the crypto mindset course.

01:21:55.000 I'm just going to start my own thing.

01:21:56.000 I'm not trying to compete with the crypto mindset guys because they kind of have a different...

01:21:59.000 Yeah, they're teaching them about the crypto.

01:22:01.000 You're teaching them the tax side.

01:22:02.000 I'm teaching the very basic one-on-one for people that don't know anything about crypto and want to get involved with it, how to do it the right way, how to learn about it, how to get onboarded, just kind of like the baby steps, and then to get them to the junior high school or the high school level where you pass them off to the crypto mindset guys.

01:22:20.000 You handle the tax line.

01:22:21.000 No, I mean, it's a great relationship.

01:22:22.000 But yeah, guys, I mean, if that doesn't tell you guys, that's just the raw numbers.

01:22:25.000 Like, Steve is the real deal, one of the best accountants I've ever worked with.

01:22:29.000 I don't know if you're taking clients on right now, right?

01:22:31.000 I am.

01:22:31.000 You are?

01:22:32.000 Okay.

01:22:32.000 Yeah, yeah.

01:22:32.000 I've got a really good team right now that's really trained up.

01:22:36.000 It's funny because, you know, I haven't really told it.

01:22:40.000 Everybody working for me never went to school for accounting, never went to school for tax.

01:22:44.000 They got trained on a job by me, personally.

01:22:47.000 And I prefer it that way.

01:22:48.000 Okay.

01:22:48.000 I prefer it that way.

01:22:50.000 So, and I've got long-term tenure, you know, I've got one that's over 20 plus years with me.

01:22:57.000 So you expanded.

01:22:58.000 Yeah, so I've got a great team, and they're just trained up really good, and they really make my life.

01:23:05.000 It's a blessing to have them on my team.

01:23:07.000 Yeah.

01:23:08.000 So guys, again, Steve's Instagram, seeing beyond the numbers.

01:23:12.000 Hit him up.

01:23:13.000 It's available.

01:23:14.000 Yeah, DM me and I will get back to you, I promise you.

01:23:17.000 Yeah, I'm pretty good at that.

01:23:18.000 You're an entrepreneur, you're starting to side hustle, whatever it may be, you need Steve on your side, guys.

01:23:22.000 It literally saved me probably millions of dollars at this point.

01:23:26.000 Yeah, it's been just so much fun seeing you guys, where you guys started and this whole story and how you guys, I'm proud of you guys, man.

01:23:36.000 It's awesome.

01:23:37.000 We're happy to have you by the side, bro.

01:23:40.000 Guys, and also if you're like a W-2 employee, he helps you too.

01:23:44.000 When I was a federal agent, you did my taxes.

01:23:46.000 And I was starting my business on the side.

01:23:48.000 So if you're like a guy that has a regular job and you're doing a side hustle, Steve is also fantastic to have to help you out with that as well.

01:23:55.000 So now we're going to talk about P. Diddy?

01:23:57.000 Yeah.

01:23:58.000 Don't end up like P. Diddy, guys.

01:23:59.000 Forget about the taxes.

01:24:01.000 Yeah, no, for sure.

01:24:02.000 Guys, so we'll be back with some lovely ladies, guys. 1.00

01:24:04.000 We got a special episode for y'all.

01:24:05.000 I think it's going to be a 20 verse...

01:24:07.000 Three in this case.

01:24:08.000 Yeah, it's going to be myself, Myron, and Chris versus like 15, 20 girls.

01:24:15.000 Yeah, it's going to be a good time, guys.

01:24:16.000 Switching up for y'all, man.

01:24:17.000 We'll be back here in a little bit.

01:24:18.000 I don't know what time we'll start.

01:24:20.000 It's 8 o'clock right now.

01:24:22.000 We'll let you guys know.

01:24:23.000 Probably within the hour.

01:24:24.000 If you're in Telegram, you're going to know right away what time to start.

01:24:27.000 Because I don't think all the girls are here yet, guys.

01:24:29.000 But we love y'all ninjas.

01:24:30.000 Check out Steve.

01:24:32.000 Appreciate it, guys.

01:24:33.000 Seeing Beyond the Numbers on Instagram.

01:24:34.000 Yep.

01:24:35.000 We'll be back in a little bit.

01:24:36.000 Peace.

01:24:38.000 I ran so far away I just ran, I ran for an island in

Fresh & Fit - March 25, 2024

Steve From Accounting Returns

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