ACCOUNTANT EXPLAINS: A Full Crypto Tax Guide

Oh, how the tables have turned. Crypto is back on the menu, boys. That's from what movie? Lord of the Rings. Thank you. Mark Kohler here, CPA attorney, best selling author, podcaster, influencer on YouTube helping Main Street America business owners. We've got a law firm, a trust company, a network of accountants and CPAs enrolled agents around the country. I'm here for you. Crypto taxation. How is your cryptocurrency going to be taxed? Numbers are up. Are you harvesting profits? What's that mean? Are there some tax strategies you might take advantage of? Yes, there are. What are you doing? Are you just trading away in your. Your accounts and your wallets and thinking, oh, all is good? Well, it could come back to bite you. You got to be careful. So I want to talk about some different ways you could save taxes with your cryptocurrency. Trading or investing or mining or staking NFTs. All the above. Or we're going to talk about how you even understand, and I want to cover right out of the gate how crypto, cryptocurrency, and all the related pieces and parts are taxed. So we're going to dive into it now. Excited to be here with you. This is your chance to ask questions. Please put them down in chat. I'm going to cover what I can. We will be having another crypto tax summit. We've done three, two of them already. One in Phoenix, one in Miami. Now that crypto is back on the menu, things are up, it's exciting, it becomes an issue. And so we're going to be holding at least a virtual crypto tax summit here in the near future, because there's just strategies that are unique to crypto. And if you're going to be trading, you've got to understand what your plan is. Your accountant may not even know some good strategies or just be picking up the pieces next year when you tell them what happened. So let's get into it. All right, first, number one, the IRS is all over this like white on rice. They just got $80 billion last year from the federal government to enforce more audits, more tracking, more collection for business owners. And in cryptocurrency, they've got task force now that understand the blockchain. They can find your transactions. Oh, not on my, you know, defi wallet. No, they can. It's on the blockchain. That's what is great about crypto is it's public, it's on the blockchain. Oh, but the IRS is not that smart. No, they are. They're that smart. So can I just show you the front page of your 1040 tax return? Okay, Jack, bring this up. This is the 1040 for 2023. Okay? See this right here? I don't know. Can I write on this? I might be able to write on this. Let's see. Nope, I can't write. Okay, let's look at here. After your name, filing status. Look at the first question right here. On your tax return, at any time during 2023, did you receive as a reward or award or payment for property or services, or did you sell, exchange, or otherwise dispose of a digital asset or financial interest in a digital asset? See instructions. Okay, did you catch that? If you received an NFT or any crypto via staking, mining, reward, award, payment, anything, or did you sell any crypto, yes or no? If you check the box, no. Okay, that's cool. Let's just go down here to. Oh. Under penalties of perjury, I declare that I have examined this return in accompanying schedules and statements, and they are true or correct. Why? Wow. So if you lie on your tax return, it's not pretty, people. Can you drop that now, Jack, please? All right, so the IRS is onto this. You've got to sign your tax return, and if you lie, you could go to jail. All right, now, some of you are like, holy crap. Taxes are due in four weeks. My 1040. I don't even know what I did last year on my wallets or my. In my exchange. Then file an extension, people. An extension is okay. You actually reduce your chances of an audit with an extension. Some of you are like, extension? That's a bad thing? No, it's not. Now, you need to estimate how much you might owe. Send in a little money. If you don't send in any money, there might be a little penalty or some interest on that, but if you don't file an extension, the penalties are ten times worse. And if you file your tax return and it's wrong and you lie, then it's real ugly. So first point. If you sold, traded any crypto last year, and you think you cannot deal with it on your tax return, you're kidding yourself. I'm here to warn you. Now, you say, well, Mark, all my money's in crypto. I haven't sold anything. I've just been trading crypto. I don't pay tax until it goes back to US Dollars. Wrong. Let me tell you the law. There are three ways your crypto taxation, your cryptocurrency is taxed. You buy cryptocurrency for. Let's say you bought Bitcoin at 30 grand and now it's worth 72, 73, your money doubled, you sell it and go back to US dollar, you're going to pay tax. You bought it for 30, you sold it for 70, you have a $40,000 gain. You're going to pay tax on $40,000. And if you only held the crypto less than 12 months, you're paying short term capital gain which could be as high as 39%, 37%. These are my brackets right here. We can look at our brackets. We have got to be extra, extra careful that we are not going to hit that 37% bracket. We might want to hold it 12 months and, and get capital gain which could be as low as 15% or 0, 15 or 20. So number one, if you bought crypto and you have sold it in 20, 23 for any gain and you went back to USD, you're paying tax on the difference. Number two. Well, Mark, I had bitcoin and then I traded it for Ethereum. I didn't go back to USD, I just traded it for Ethereum. Taxable. Because whether you go to USD or you go buy a bunch of Ethereum, you got rid of your bitcoin in that example. I bought it for 30, I sold for 70, I have a $40,000 gain. Well, I just exchanged it for Ethereum. That's the same as selling it. Now, if you don't hate the player, just hate the game. This is the game. You buy stock, you sell it, you pay tax. Well, I bought crypto and I left it in crypto exchanges or wallets, it doesn't matter if you exchange it, you pay tax on the difference of what you bought it for and the current US dollar value the day you exchange it for another coin. Well, I did it in my Metamask wallet. Okay, don't care. You're still paying tax. Mark, you have no idea. I do trades every day. Yeah, so you're going to need software. Coin Ledger. Coin Ledger is the number one software out there for individuals to plug in all their different wallets and get the reports on all of your gains and income for last year. And they do the defi wallets, they don't just do the big exchanges. Number three, you take any crypto of any current, of any type of token and you exchange it for services or buy something with it. Oh, you bought an nft, taxable. Oh, I went and got some money out of an atm. Taxable. I used to go to A restaurant in San Diego. Taxable. If you use your crypto to buy something, that's equivalent to selling it. So if you go back to USD, you trade for another type of token or coin, or you use it to buy an NFT or service or product you pay to tax. I'm sorry, I know this is not fun hearing, but that's water under the bridge for 2023 and I can't save you taxes for 2023. It's over. It's over. Whatever you bought and sold in 23 is over. And if you just bought it in 23 and just sold it now, it's over. You have to call your tax advisor before you sell. If you just think, say you own a rental property and you want to sell it. If you go to closing and sell your rental property and then show up at your accountant's desk and go, hey, how do I save taxes? They're like, well, before you sell it, let's look at a 1031. Let's look at a charitable trust. Let's look at an Opportunity Zone. Let's look at an installment sale. Let's look at a dst. What? You already sold it? Well, what the hell can I do? You already sold it. Now we might be able to salvage a little Opportunity Zone if you want to go buy some real estate. Now I've got to figure out how to offset your gain with other investments. We have got so many awesome freaking strategies. We'd love you to do your crypto transactions in a Roth IRA and never pay tax again. The charitable remainder trust would allow you to sell all your crypto tax free and create a stream of income. We've set up hundreds of charitable ranger trusts for crypto traders. Have a consult with a real tax lawyer on Main Street. That's affordable. Our tax lawyers are super affordable. You can meet with them anywhere in the world on Zoom. We'll have a strategy session and see what you need. But remember, this is part of your bigger equation. What are you doing with this money? Are you buying real estate? Do you own your home? Do you have a revocable trust? Do you have an S corporation? What's your day job? What's your side hustle, people? This is what a tax advisor should be doing for you. Anyway. Now I have a certified tax advisor network and any of you that are enrolled agents, CPAs, accountants, tax lawyers, financial advisors. And you want training on how to be a certified tax advisor and provide advisor services. I have a 12 module training program. One entire module is on crypto. NFTS metaverse, staking, mining, trading, capital gains. All of that is in a section. So if any of you are looking for a certified advisor in my program, you go to markjkohler.com and you can find one right now that's taking clients. And by the way, I don't make any money. I just give, give the network away. I want people to find I'm a matchmaking service and I don't take any money for it. I'm taxmatch.com I want great, great tax preparers hooked up with tax filers. Let's get you some help. For any of you that are looking to become an advisor, one of 12 modules is just crypto. Whole module on real estate, whole module on asset protection, four modules on tax planning entities, the whole nine yards. Check it out@marcjkoler.com all right, now let me just hit a couple other points and then we'll, I'll take your questions. It's a big topic. Our crypto tax summit is a full day day, a full day at the crypto tax summit. So what I want to show you here is what I call the trifecta. The trifecta is where we organize your transactions. If you're doing mining or any type of staking, that is not custodial staking. So staking, mining, or. I'm going to put some metaventures. You're going to want to run that through an S corporation because that's ordinary income. That's how it works. If you don't, your taxes are going to be close to 45, 45 to 50% on the first hundred to 150 grand. That's your tax rate if you're mining, staking, or doing metaventures. Now, if you're holding crypto, all right, now I'm doing custodial staking. I'm buy and hold. I'm trading. That goes on the right side. Now we might use an LLC for asset protection, or we just hold it in our revocable living trust. This all comes down to your 10, 40 and nets together. So, people, if you're holding crypto, we're going to be over on this side. And this is where I'm going to put your NFTs, all of your coins, tokens. All right, so we've got to decide, are you doing operations with crypto or are you doing holding with crypto? And a lot of traders are doing both. I'm doing crypto mining and I'm going to pay higher tax rates on that. But as soon As I get my bitcoin from my mining, it comes over here into a bucket. So you want to make sure you understand those differences. Now the last thing I want to point out is NFTs are a whole other animal. And anybody that's doing crypto gets into NFTs pretty quickly. It's really the future of so much of our technology in this country. The blockchain technology is off the chart. NFTs, there's two types of NFTs. There's collectibles and then there's utility NFTs. If you buy and sell a collectible, you have to pay collection. The tax rate on collectibles is 28%. It's not pretty. If you buy and sell a utility token or nft, then you can either get short term capital gain or long term capital gain, which is going to be a lower rate based on your bracket. And long term capital gain could be 0 to 15 to 20%. In all these situations. You also have state tax. And if you go, well, Mark, I have my, you take, I have my server in Nevada or I set up an LLC in Tennessee or one of my nine tax free states, Washington or Florida or Texas. So I don't pay state tax because that's where my LLC is or my corporation. Whoa, whoa, whoa. You live in California, you live in New York, you live in Illinois, you're going to pay tax in California. There's no way around it. You can't set up a Nevada LLC and think you're going to get around it. You won't. California is all over this and they have been for years. So it takes some planning. I am sorry to be the bearer of bad news. So get informed, get educated because you're going to be more educated than your tax advisor with training at our summit and any of you tax advisors out there, we got to know this now. I love Coin Ledger. I'll say that again. Coin Ledger is a good resource to start getting the data for 2023. File an extension 4868, get on my network and find an accountant, an advisor that can walk you through this when it's time to do your taxes. All right, well, Jack, I mean, if we have some questions, great. If not, you know, I was gonna go hit some golf balls or. No, actually I had work to do.

Okay, we got a lot of good questions. Let's, let's start here. Richard asks Mark, is there a 1031 exchange like tax rule for crypto?

Nope, nope. You can't do a 1031 exchange on crypto taxation on cryptocurrency. Now, the nice thing about cryptocurrency is there's no wash sale, wash sale rule, which with if you have regular stock or NF ETFs or mutual funds and you sell one at a loss just to harvest a loss and turn around and buy the stock again, the IRS says that loss is suspended because all you did was wash it. You just sold it and bought it. With crypto, that doesn't apply. So you can sell crypto that you have at a loss and take the loss and then turn around and rebuy the crypto. So I would say that's an exception to the stock trading rules, but there's no such thing as a 1031 exchange in the crypto world.

Okay, we're getting a lot of different questions about the best software to calculate taxes for crypto.

Well, there's so much out there. I. We've used tax bit, but they've gone all corporate coin ledgers out there. Hey, if any of you have a good software that you're liking, put it in chat, share it. And some of you might go to one of these softwares and they don't support the wallet you're using, then switch around, don't throw. Guys, this is not easy and you're going to get a little frustrated. But go out and sign up for some of these different software products that do your crypto taxation reporting and transaction reporting. And you may hate Coin ledger and love something else, or you might love, you know, vice versa. So let's make sure in chat we're writing those down or everybody share and Jack, let's make sure we're writing them down too. Cool.

Well, you're gonna love this one. It's not a question, but Andrew hall, when you were talking about taxable events, is saying, no, it's not. It's still invested. So if I switch from Bitcoin to Ethereum, it's still invested, so it's not a taxable event.

What do you have to say, Andrew? Andrew, Andrew, bless your heart. Let me get this straight. I have a rental property. I turn around and sell it and buy another rental property. I'm still invested. I don't pay tax. Wrong. Oh, but Mark, I bought Microsoft stock and I sold it on my Merrill lynch account and bought Tesla. So I'm still invested, I don't pay tax. Wrong. You sold your Apple stock. People, I don't know where this misinformation comes from. Maybe you're on a discord channel where someone's given tax advice and they don't know what the hell they're doing. If you trade or sell crypto for another currency, it's taxable, period. This is clear, clear, clear tax law. Anybody that's selling you anything different is a dipshit and they don't know what they're doing. Was that my inside voice? I am so sorry. And Andrew, I am so sorry to share that with you. Yes, it's still invested. Yes, I can still own stock. Yes, I can own mutual funds. You. Yes, I can own real estate. It's still invested. But you sold what you owned. You pay tax on your basis compared to the sales price. Next.

That was great. I think you cleared that up.

Did I clear that up? Oh, my gosh. Andrew hates me now. I'm sorry, Andrew.

Okay, Loyal Best says, what is the strategy? So I can trade crypto in an IRA and be able to live off of it before I'm 59 and a half years old.

Oh, my gosh, I love this. Okay, everybody, let's go. Whiteboard, there's two. Now, this is where the money's at. And this is what a lot of my clients are doing, is we're taking our Roth IRA. Now, I love Roth. And you guys can open up a Roth right now still for last year and put, let's see, what's the number for last year? Okay, this is important, everybody. You can open a crypto Roth right now for 6,500 and turn around and put in 20, 24 numbers for 7 grand. So you could have, right here, 14, 5, 5, sorry, 13,500 in a Roth IRA tomorrow if you wanted to. And some of you have some old IRAs, you can roll those in. You have an old 401k, you can roll those in. This is a huge conversation, but let me just say the goal is to get to a Roth ira. Now you want to do a self directed Roth now this is important, everybody, because if you go to Merrill lynch or Schwab or Fidelity and go, hey, I want to buy crypto with my Roth ira, they're going to go, okay, you can buy this new BlackRock fund, Bitcoin. And you know they're buying Bitcoin soon. No, no, no, you're not buying Bitcoin. You're buying into a fund that owns crypto. That's different. You don't. That's not trading crypto. So you want to get to a self directed Roth ira. There's no tax, no penalty to do this. Now where you go, let me just give it to you right now. Directed ira.com. so directed ira.com you can literally open up account on your phone in the next 30 minutes. It's that easy. Directed ira.com okay, so now hang with me. So let's say you get your Roth ira, maybe you open up a new one. You transfer in money. I do not care. All right, you have two options at directed ira. We have the down and dirty streamline version and we have the kick ass, I want to do defi wallet version. So option one is we have a wonderful relationship with Gemini. In fact, they just highlighted one of our articles today on their website. So Gemini is a custodian, or I should say a exchange. So the Gemini Exchange, we have a contract with them. We have over $1.5 billion in our directed IRA family of money that's been self directed with clients. So the Gemini exchange will set up what we call a crypto Roth. And you crypto Roth. And you can set this up right now in the next half hour. And it's a crypto Roth account. Now the only problem for some of you that you're going to have with this is I can only trade what's on the Gemini Exchange. But right here, I have it on an app. I have my Roth IRA on an app right now. And I can just go, gemini. Boom, there it is. And I am on my app. I am trading in my Roth IRA on any token or coin on. I don't want to hold this up now because someone can see it. Oh, I'm killing it. I'm up. I'm up 5.44% today in one day. I love that. Okay, so that's my crypto Roth ira. And I can do any trading on Gemini Exchange. And up until April 15th, I can put in my 2023 number and I can put in my 2024 number. And that's going to be $13,500 if I'm under age 50, an extra. An extra 1500 if I'm over 50 or older. Okay, now the second option is, and we do this all the time, you set up an llc. Now this is when our law firm comes in. You set up a single member LLC that's owned by your Roth. And this LLC can open up Metamask Wallets Voyager account. Not Voyager. It can open up any sort of, you know, crypto.com, whatever. So you can open up all sorts of wallets under this ein. And all these wallets are going to get reported inside your Roth ira, by the way, when you trade Inside a Roth. Let me just say this. No tax ever. As in smalls and sandlot forever. No tax in your Roth ira. Holy crap. So that's why we're doing trading in a Roth. And we want to get there with a crypto Roth or a solo 401k, whatever. We want to try to get there as soon as possible in that Roth position. Next question.

Okay, we're getting a lot of questions about losses. Main thing being what to do if you lost assets in the Celsius blockfi FTX stuff and if your wallet was hacked. What, what do you do with taxes?

Okay, we have, we've had multiple podcasts on this in the past and I want to give you our two podcast stations. So let me write these up here. Main Street Business podcast and also the directed IRA podcast. Now, last year when this was hitting, we did a full podcast on what to do with my loss on ftx, the Voyager, bankruptcy, all of these things. What do I do? So you're going to see that in the history. It's about a year old. We might be able to get the link in the description for you. The directed IRA podcast. We talked about using the Roth and the 401k to do crypto and mining. We have multiple, multiple shows on that too. So I just want to say it's a big topic. So the first thing is getting your crypto stolen from me, from you, or hacked is not a write off. I'm sorry. It's as if someone broke into your house, stole your vcr. Does anybody have a VCR anymore? They stole your fax machine, they stole your Betamax, they stole your Nintendo 64, your Atari. I'm dating myself, okay, Little, you know, throwback. So here's the point. If someone get breaks into your garage and steals your car, you don't get a write off. Thefts are not a write off. If someone breaks into your wallet and steals it, it's not a write off. Now there is a write off when there's a collapse like FTX or the Voyager bankruptcy. There's going to be some write offs in those instances. And I go through it in detail in this other podcast on how to deal with it. Now, your accountant should know this and if your accountant does not, then you got to upgrade. Get over to my network because we have trainings on this in depth in the Main Street Main Street Tax Pro program. MarkJ Kohler.com Go up to the network. Click on it. So losses are tricky. Stolen, not a write off. A bankruptcy, an FTX scandal like A Ponzi scheme scenario. It's going to be a write off, Jack.

Okay, we're getting a ton of questions about the crt. Can you just do a quick overview of the CRT and why it's related to crypto?

You bet. We have been doing the Charitable Remainder trust strategy for crypto for now, three, two, three years and it's just phenomenal. So here's how the strategy works. So let's say you have a $1 million wallet and you maybe you have a hundred thousand dollar basis. Now this is assuming you haven't paid taxes along the way trading and da, da, da, da, da. This is you bought it for 100k, it's now worth a million. So this is what we call a built in gain. Built in gain. Sorry, my handwriting is terrible here. So with a built in gain that you haven't traded at all and you haven't paid tax yet, you're going to get killed with 900 grand of income. Now, with Obamacare, federal capital gains and state capital gain, you could be well over 30% in taxes. So you're going to owe 300 grand in taxes. Generally not pretty. So the step of a CRT is you're going to take this $1 million crypto and I'll do this quickly. Step one is you form a CRUD. There's about 30 variations. We like the Charitable Remainder Unit trust. We explain this in our consultations. You're going to donate. So number one is create it. Number two is you're going to transfer or donate, not sell. If you sell it, you jack it up, you're going to donate the crypto to this qualified charity, which is a trust. And guess who the trustee is? You. So you get to be the trustee and continue to trade crypto, but now it's tax free trading. So you're going to donate it. You are the trustee and this is a qualified charity when it's set up properly. Okay, so that's step one. Step two, step three is you're going to sell. You want to unlock that gain and start buying and selling and trading. So you're going to sell the crypto and it's going to be tax free. You're not going to pay any tax on that sale. Now you're sitting on $1 million in that, in that charity. So step four, guess what? You get a tax deduction because you donated crypto to a charity. Now in the long run, step five, when you die, when you die or 20 years, whichever is longer, this will actually get distributed to a Real charity. So this is going to be a real 501C3. It could be a college, a church, your own nonprofit. But when you die, that's where it's going to go. So you get a tax deduction of about 10% because that's the present value of what's going to go to charity when you die. So based on your age and gender, what we're going to figure out what your tax deduction is. Well, Mark, what happens to that million dollars while it's there? Now number six, step six is you get cash flow for the rest of your life distributed. This is asset protected. No one can touch it in a lawsuit. So if you're going to, if you're 50 years old, it could be around 10%, 40, it could be 9%, 38%. If you're age 30, it could be 8%. So the point is, the younger you are, the less the payout's going to be every year. But let's say it's 9%. So you're going to get 9% of $1 million every year the rest of your life. Well, what happens if you go out and trade it and you turn it into $2 million tax free? Now you get 180 grand. You get 9% of whatever the value of the crud is on January 1st every year. Now this cash flow, this unit trust payment is taxable. So you would get taxed on the payment. But the beauty of the CRT is that you don't pay any tax on the initial sale. You're able to trade tax free and build it tax free. Then your unit trust payment comes out. So the CRUT is amazing. If you want an appointment on this, just to give you a full disclosure on it, we charge 5k. They're five grand. We've been doing them for years. 10k. 5 or 10, or is it 8k? Somewhere between 5 and 10k. Depends on the amount of work involved. 5 to 10k. You're going to want to meet with the attorney in my office, Max Merritt. He's phenomenal. This is KKOS Lawyers. And you go to kkoslawyers.com and you can pay for a one hour consultation. Meet with Max, talk about your options. And if you move forward, he applies the consult to the fee. And there you go. And so get a consult, it could save you thousands if not millions in the long run. Okay, Jack.

Unreal. Okay, Alina asked a follow up question to that. Do charitable remainder trusts have clawbacks?

My hell. Okay, there's some guy out on the web that is freaking out all the people trying to learn about this. Talking about a clawback in that Mark Kohler is crazy. Now he likes. I'm not even going to say who this is. They like to go to the Krat, the annuity trust where I talk about a higher tax deduction. Well, with an annuity trust you do get a higher tax deduction, but you get lower payouts and you can't control the value of. I like the crut number two, this clawback is this unique weird situation that if you're, that if some change occurs in your life like oh, I'm not going to give it to charity or I'm not going to the charity that I was going to give it to is now gone. Or I set up a charity for myself and now it's not mean. If there's some problem with the charity, the IRS could claw it back and go, hey, we want our tax deduction back and we want to pay. Who's going to do that? No one. We build the CRT so it always goes to charity. Do not worry about a clawback. And the unit trust, the charitable remainder unit trust is far superior to the crat. And get us get a second or third opinion if you don't believe me. Do a consult with Max Merritt, another licensed attorney here in Arizona, helping clients nationwide and then get a third opinion from someone and about the crud. But just be careful of someone on this clawback crap. It's not going to affect you. Okay.

Tank asks, can my 16 year old son open a crypto IRA?

Yes. I had kids can open up a crypto IRA as soon as they have earned income. My grandson who is under age 2 has a Roth IRA for $500 in it and we can put crypto in it because he earned income as a model on stage in one of my workshops. It was very powerful. He came out on stage and he's like, hey everybody, I'm so excited to be here. I'm Mark's grandson and I help invest and I'm here showing you how this tax strategy works. That's what he said with his cute little face. But anyway, the point is you can start paying your kids as young as they validly earn income and you're not going to be crazy. And paying kids under age 10 has got to be very strategic. But teenagers earning money and opening up a crypto Roth, we do it right now. You can open up a crypto Roth IRA for your 16 year old@directed ira.com right now and buy Crypto love it.

Okay, Loyal asks, can I only invest 14,000 in an IRA or can I use a mega backdoor and. And invest more?

Well, okay, first name again.

Loyal.

Loyal is pushing the envelope here. He's trying to get me to go more technical. Loyal, I love you. And the answer is yes, people, you can actually do a backdoor Roth IRA and put over $69,000 in it this year or more, depending on your age. You could also have an old 401k from an old job that we could convert into a Roth IRA and buy crypto. You can also put into your own Roth IRA money and still have a 401k at. So many options here based on your income and what you're trying to accomplish. So so many people think that you're restricted to six or seven grand in a Roth ira. I can do more. I've got hate mail all over TikTok right now because I told people you could open a roth and put 20 grand in it. That's because it's a solo 401k Roth on top of your regular Roth. If you're 50 or older, just with your solo 401k Roth and your personal Roth, I could put in $38,500 right there. And that's easy. That's easy. So this is how the rich get richer people. You've got to be learning these strategies and building these Roth IRAs with crypto. They're incredible, Jack.

Okay, this is. We'll go last question and then last thoughts on crypto taxes. Casey asks, is there any advantage to moving money from my IRA into my 401k solo 401k.

Okay, so let's whiteboard this. This is a great question. And there can be some advantages. You might have an old IRA and you're going to go to. And you have a solo 401k. Now, for anybody that has a solo 401k, you may even have a day job 401k over here, you can have both. Okay, so let's just keep that in mind. But a solo 401k is going to be for someone that has an LLC side hustle or S Corp, and they're sponsoring their own solo 401k. Now, what I like to do, and this is where you build this mega Roth, is because it's a combination of pieces and I've got YouTube videos on all this. But you could fund your own Roth, which I always like to do first. So first and foremost, fund your own Roth. Then you can go over to the Solo 401K and you can put more Roth in it. See, this is where I was saying, if you're 50 or older, I can do 30,500 this year and plus another 8,000 over here. Crazy. Now the question is, can I take this old Roth IRA and put it into the solo? If you're going to go Roth in the long run, you have to put it in the solo, then convert to Roth. Don't convert to Roth first because you cannot go from roth to solo 401k. It's not allowed. But I can go traditional old IRA into the solo 401k, then convert to Roth. So that's the way to do that. The reason why I'd put the old IRA in the solo is because it can be more efficient, too. You're the trustee of your own 401k, and so the Solo 401k could open an LLC as well. And now you're pooling all your money into this LLC up here. You also get better asset protection with a solo 401k than you do get with a Roth. Just a little. When you meet with one of my tax attorneys, they're going to help you organize your portfolio to figure out which LLC structure S Corp. Solo Roth. Kids, Married, single. How much money are you making? All these factors play into it. Hopefully. Your big takeaway today. Big takeaway. Crypto is awesome. I love NFTs, the metaverse crypto exchanges. I love it. I think it's a lot of fun. AM I. Is 100% of my assets in crypto? Hell no. Would I recommend anybody to put 100% of their assets in crypto? No. 100% of their assets in real estate? No. Be diversified. But the second point is you have to understand that it's going to get taxed when you're trading around in these wallets. And there's strategies that you might want to employ, like the crt. Get a consult with one of my tax lawyers at KQS Lawyers. Please consume the podcast. I'm going to be here every week. I have been for years. I've got best selling books on this. I've got a workshop in June in Salt Lake, another in Phoenix in December. We're going to be holding a virtual crypto tax summit. Sign up for my newsletter. It's free. Whenever I go live, you're going get a ping. Captain your own ship. Don't rely on your accountant or some discord or Google chat to tell you tax strategies. If they're not signing your tax return. Is someone you give them free advice. And you know what free advice is worth. So please get educated on this. You're going to love it. There's so many freaking awesome opportunities. Thank you for being here. Please subscribe, follow, give me five stars. And for any of you tax advisors out there or want to be tax advisors, CPAs, enrolled agents, accountants, bookkeepers, please check out my tax pro network@markjkohler.com Get a demo for free. See what it's about. Super affordable tax deductible, continuing education and real tax strategies. See you guys.