Beginner's Guide To Crypto Taxes

Hey everybody, Mark Kohler here, your resident tax lawyer, CPA attorney, bestselling author, podcaster, entrepreneur, crypto investor, crypto mine owner, crypto staker and I love to talk about crypto so I love saving taxes for clients around the country. We have a law firm, a trust company. I've got some strategies here where you can actually make crypto money. Crypto investments tax free. That's going to be my incredible spoiler alert climax of the show today. Now I'm going to be on YouTube, Facebook, Instagram, X, LinkedIn. I'm here for you. I would like you to post your questions down in the comments section. I will be taking questions here at maybe 15 minutes into the presentation here. I want to get through some topics and I want to help you guys understand the issues of crypto taxation and some strategies to walk away with that. I've got a couple live events coming up in the next three to four weeks. Next week I've got one, it is free. It's a two hour event. I'll tell you more about that as well. So I'm here. I love Main Street America, I love crypto taxation strategies and I love investing in crypto myself. I think I just bought another some Solana just two days ago. I was feeling it. So, so you know, some of you are like ah, don't do that. Others like you got it Mark. I don't. Everybody's got their own opinion, right? All right, so now this is not going to be about what is crypto, how what's the best crypto token or dao or what are you doing with your mining, how to mine. It's not. This is about how your crypto transactions are taxed. And let's get into it. Number one, when you make money with crypto inside any wallet you owe the IRS money there it will be taxed. It is not. Oh, when I turn it into USD I can do all that trading in my Metamask wallet. I'm not going to pay tax until I put it back into US dollars. No. The IRS is very, very clear with this. So I want all of you to know right out of the gate if you're making money staking, mining, lending or just buy and hold and you sell it or trade for another crypto, you are now going to have a tax liability. Now I would like to show you, I'm not going to do a screen share but I just want to read this to you. This is the first question on your tax return that you're filing maybe for 20, 23 if you're on extension or what you're going to file in 2024, this is the first question on your 1040 tax return. Every American has to answer this yes or no. Penalties of perjury go to jail. You ready? At any time during 2023. This is a 23 return I'm looking at. Did you A, receive as a reward, award, payment for property or services, or B, sell, exchange, or otherwise dispose of a digital asset? So did you receive crypto or did you sell it or dispose of it at any time during 2023? Yes or no. Okay, now if you check no and you did, that is tax evasion. You could ultimately go to jail for that. If you click yes, then the IRS is going to say what you do. You have to show that on schedule D, as in David, if you are buying and selling. Schedule C if you're crypto mining. Staking is a weird one. It could be passive as other income, or it could be ordinary, depending on if you're acting as a node operator. Another topic, but I'm, I. We've got a crypto tax summit for. It's two days long coming up in September. That's how much there is to know here. And you cannot expect your accountant to know this. Some do, some don't. I train accountants around the country on this. So let me remind you, the first question on your tax return is did you buy, sell, exchange, receive, blah, blah, blah. If you check yes, and you did, and you better check yes or you're going to jail. Then you have to report it to the irs. Now let's dive into the next question. Well, Mark, the IRS doesn't know. It's a Metamask wallet. It's a wallet over here. It's on exchange. It's not. Whatever. I've got it in cold storage, hard storage, hot storage, warm storage, I don't care. It's blockchain, people. It's public. That's the beauty of blockchain, is that it's not private, controlled by some bank or some financial institution on Wall Street. It's public. The IRS can see it, too. They have task force at the IRS going through blockchain transactions, and they will find you and they will tax you with, with penalties and interest five years ago if you didn't report it. Man, it's scary, right? So, all right, I just hope I got your attention. First question on tax return, your transactions are taxed and you're going to have to report it. So let's talk about when a transaction is taxable and how it might be taxed. And then I'm going to start giving you strategies to get around it, but you're still reporting it. Okay, the first one is if I go buy Bitcoin, I go buy Bitcoin and I put it, I buy it on an exchange or I buy it in a wallet somewhere and I hold it for a couple months, it goes up five grand and I sell it. Now you may say, well, Mark, all I did, if you sell it to US dollar, fiat currency, you're going to pay tax on the 5,000. You bought it for 50, it went up to 55. You're going to pay tax on $5,000. Well, Mark, that makes sense because I traded back to fiat currency, my US Dollar. Okay? Now let's say you buy the same bitcoin, a few months later, it's worth $5,000 more and you trade it for a bunch of Solana or Ethereum. You pay tax on the five grand. You're like, Marco, I didn't put it back into US Dollars. I didn't go back to Fiat. Doesn't matter. You sold the bitcoin, it went up by $5,000. You will pay tax on $5,000. And you can't hide from the IRS on this. Very, very important. All right, now, I'm going to be taking questions here in a moment. Next point I want to make. If you use crypto for services now, you'd see these around now, ATM Bitcoin, ATMs. You could pay for your coffee with Bitcoin, buy a car with Bitcoin, whatever. If you use crypto to buy something, that's equivalent to selling it. So when you sell crypto, you pay tax on its appreciation. If you use the crypto to buy services or product, then you're, it's as if you're selling it and you're going to pay tax on that appreciation. So those are the three times that happens back to Fiat. You trade it for another crypto or you use it for services or product. Now you may say, well, Mark, I pay capital gains. That's zero capital gains tax. And by, by the way, guys, I have a calendar I produce around the country every year and have all the tax tables here and the capital gains tax tables, it could go as high. With ACA, the affordable CARES act tax is 21, 22%. Then you've got your state tax. And if you don't hold that crypto a year, you don't even get capital gains rates. You're going to be paying ordinary rates so if you buy bitcoin and you held it five months and sold it for $5,000 more, you're going to pay at ordinary rates. You only get capital gain rates which are lower. 0, 10, 15, sorry, 0, 15 or 20. You only get those lower rates if you hold it a year. So if I held it less than a year, you're going to pay as rates as high as 37%. If you live in California, you make a crap ton of money trading crypto and you never held that crypto for more than a year. You could be in the highest rate in California of 13% plus 37% on the feds. Guys, that's 40, 50% going to the in taxes. So whatever you made in crypto profits, 50% could go in taxes. We got a plan for this. We got to be on top of it. So next topic, staking. When you're staking, you're making money off your crypto and you're like, well Mark, they didn't send me US dollars or Fiat. They I just my Solana or Ethereum or whatever went up in value because they paid me back in my crypto. Yeah, that's like interest. It's like dividend. If you buy a stock in, you get more stock through a dividend. You pay tax. Well, when you get more crypto by staking, you pay tax. That's receiving crypto. You have to check the buck. Yes. On your 1040. Scary right? Now let's back up for a minute. Some of you are like, Mark, I have thousands of transactions. How in the hell am I going to track all of these transactions and staking? You're going to use services like coin, ledger, tax, bit coinly. These services will go and take your wallets and prepare all the forms, the reports that you attach to your tax return. You don't have to go out and do these piece by piece. You can use these software packages to do this. I'm already seeing some questions coming in. Please put your questions down on YouTube or Instagram. Everywhere else I think is just live without a chat function. So please do that and I'll get your questions here in one more minute. Mining. I have a crypto mine. I've got seven video cards. The power bill is not what you think it is. It's not bad. I am making everyday bitcoin by verifying transactions on the Solana blockchain which is called crypto mining. That that is taxable income as well. And so I want to report that very carefully. So mining, staking and trading is all taxed. That's the spoiler alert. Now let's get into two or three strategies real quick. The first one is when it comes to trading. Number one strategy, try to hold your crypto a year because you could cut your tax rate in half with capital gains rates. Number two is you can harvest losses in crypto where you can't do that with the stock, bonds and mutual funds in Wall Street. What you can do is if you have a crypto at a loss, you can sell it, take the loss and rebuy it. That is allowed with crypto where it's not allowed with stock. So we want to try to harvest those losses as often as we can. The third strategy I want to talk about is doing this in your Roth IRA where it's tax free entirely. Please start funding your Roth ira, buying your crypto, staking or trading or mining inside your Roth IRA and you pay zero tax when you do your transactions. The next one I want to just highlight here is for those that are doing crypto mines, that is ordinary income. That's like you're selling a, how can I say it? You're doing a service with mining and so you're getting paid for that service. That's ordinary income. So what I normally teach is this trifecta where we have down here, here's your 1040 or your revocable living trust. And then over here is your day job. W2, you might have a small business LLC, I don't know, might have a side hustle and then over here be might be your rental properties or your crypto. I'll put a B for bitcoin and you're trading, so you're trading over here and you might be staking over here. So this is going to be hopefully capital gain treatment or passive income. It's not subject to self employment tax. With crypto mining we want to do it in an S corporation. So your S corp sets up your nice hash account, owns your, your CPU and your video cards and all of that goes into your S corp. I've got podcasts, I have over 500 podcasts people and you want to listen to some on the S corporation. It's a big topic and I'll take some questions here. Maybe we get into it, but you want to be running your crypto mining and if you are again doing staking and you're a node operator, you're going to want to do that in your S corp as well. And that's going to save you 15% in taxes. If you don't do the S Corp, you're going to pay 15% more then up to 37% and then your state tax people, you could lose, oh my gosh, up to 65% in taxes if you don't run it through the S Corp. So I could create passive income. I can even set up a 401k, take a write off in my mining business and then take my 401k and go buy more crypto tax free. So there's all sorts of fun strategies here. We're going to be unpacking these and more. Next week I'm going to have a two hour free webinar where I'm going to be sharing a PowerPoint and getting into it more detailed. I'll have some other crypto experts on that webinar with me. That's next Thursday. And if you can make that, the link will be down there below and you can sign up and you accountants out there, you enrolled agents, you CPAs, you've got to come to that. It's free two hour webinar on the crypto taxation 101 and that will be on the 22nd, August 22nd. Please look at the links down below and sign up for that. Our crypto tax summit, the two day event is going to be in Anaheim. All of you in California, this is easy to get to. Come down the 5 get, come over the 405 get over to Anaheim near Disneyland for our crypto two day tax summit. That's going to be September 27th and 28th. The link down below for that, it will be a virtual event as well for you and other parts of the country. Come fly in, get on a Southwest flight, stay at the Hampton Inn and here's my guarantee everybody, if I don't save you in taxes the cost of your ticket to come to the crypto tax summit, which is like 500 bucks to I think our VIP is 1000. If I don't save you in taxes, I will give you your money back, the cost of your ticket to come. And by the way, the vip, your lunch is included and all that. I will give you your money back if I don't save you in taxes. That's how confident I am. It's going to blow your mind. So those two events are going to help you and I'm going to answer questions now. But you can already see this is pretty complex and you can't expect your accountant to understand this. My crypto investors, my builders, you've got to learn this. All right, so here's some of our Questions? Let's jump over to Jeremiah from YouTube. What about making crypto? Staking crypto, but not making money, just getting more of the same token? Well, Jeremiah, you heard me a moment ago. That is taxable. For example, let's say I own 10 Solana and I stake my Solana and I get a 10% staking fee. They're paying me to stake my crypto and I get one Solana. You're like, well, Mark, they didn't pay me. Yeah, they did. They gave you one Solana in that example. Well, I didn't convert it to USD or fiat. Doesn't matter. You got paid one Solana. So the day you received that staking crypto coin and it went back into your wallet, whatever it was worth, that that day is income to you. You have to pay tax on that. Sorry. So when you're using the software like Coin Ledger Tax bitcoinly, it will tell you what your your staking profit was during the year on the days you received the crypto, when you're getting the same token. So, Jeremiah, I know this is terrible news for you. I'm sorry. It's living in America. People pay tax when you make money. I hate to say it. Don't hate the player, just hate the game. I'm sorry. All right, Douglas from YouTube. What if when you sell the bitcoin, you leave it in your wallet and buy the dip, you pay tax. So if you buy Bitcoin for 50 grand and in your wallet, you leave it in your wallet, sell the bitcoin and buy the diploma. Okay. You pay tax on the difference of what the bitcoin was worth when you sold it. So if you bought it for 50, you sold it for 60 and bought dip and left it in the wallet. I get it. You pay tax on the 10 grand because you made 10 grand and then you went and bought dip. Sorry, Duckos. I know, I know. Tammy from Instagram. Question. Since 2020, what year do you think they will start wanting to dig up people's transactions that never wrote down any. What a nightmare. Well, Tammy, the IRS can go far as far back as they want. There is no statute of limitations when it's tax fraud. If you're not reporting the income, that's tax fraud. Now, I'm not saying you could go to Coin Ledger and I don't know how far back they'll go. I. I wish I had that answer for you. But you may want to go back and amend your tax returns and pick up that income or go to sleep at night. And hope the IRS doesn't come knocking. We don't know how far back the IRS is going to go. I would like to presume that they're going to go back to 2120 because that's when they started putting that question on the tax returns. Baron Bull from X says, if I open a trading account under my LLC and have losses, can that flow into my personal return? Yes. Whenever you have losses trading crypto, whether you do it in an LLC or not, it's going to end up on your 1040. And by the way, guys, you don't need to put your crypto in an LLC. It's not going to save you taxes. LLCs do not save taxes. An S corporation will. If you're mining in a node operator staking, if you're just regular staking, you don't need an S corp. But if you're mining or node operator staking, you do need the S corporation. It'll save you thousands of dollars in taxes. By the way, some of you are like, Mark, I need help with this right now. I want to ask my team, Danan and Kirby back in the studio. Please put down in the chat of all these platforms, markjkohler.com, you can go to my Main Street Tax Pro network. These are tax pros that have gone through an extensive training with me on crypto taxation. They've answered, I think almost 80 questions to 100 questions on crypto taxation. And they've taken these exams and they train with me weekly. They speak. Mark Kohler. You can find an accountant at my Main Street Tax pro network@markjkohler.com it'll be down below. You can interview them. You don't have, I don't make any money if you hire them or not. So look for a new accountant or get one if you haven't had one that understands crypto taxation. You also may want to meet with one of those tax advisors and build a whole plan. You can also meet with tax lawyers at kkos. Lawyers. I have crypto tax lawyers. And you could do a whole plan for around 1500 bucks. It's called a comprehensive consult and you can pay us in crypto for that consultation. So that would be something very, very important for some of you that have a big portfolio of crypto. Hope that helps. I'm digressing here because I want you to have resources. We got an event next week, two hours free. We got the two day event in September under 1000 bucks and I guarantee that it'll save you in taxes. Or I'll give you your money back. I have a network of accountants around the country, and I have a tax law firm that specializes in crypto taxation. We're here to help you. You can do this. You can get the support you need. All right, so I want to repeat, an LLC does not save you taxes. And if you did have losses in the LLC or not from trading crypto, it will flow through to your 1040 day from Instagram. What about offshore holding companies? If you wanted to hold crypto offshore, it would be an asset protection strategy. You do not save taxes. Trading crypto offshore, the US Will still tax you whether you make it in Australia, England, or the U.S. if you're a U.S. citizen making money on your wallet, you are paying U.S. taxes. Number two, let me add this. Well, Mark, I live in California, but my crypto mine is in Nevada or my wallet is in Nevada. Really? And California is going to say, that's okay. You live in California, you go to your day job in California and you have a wallet in another state. California does not care. New York does not care. Illinois does not care. If you're an Illinois citizen, you're paying tax on all of your crypto transactions in Illinois's taxes. No matter where your wallet is, your wallet could be in Russia. I don't care if you're an Illinois citizen living in Illinois more than half the year and a US Citizen, it does not matter where your wallet is or where your staking is or where your mine is. You're paying taxes in the US And Illinois. Man, I feel like such a Debbie Downer. I'm sorry, guys. This is why we're going to learn some strategies. All right? Thomas from YouTube says, I have some crypto that I bought back in 2019, and I bought some this year. With stocks you can sell first in, first out. Is this possible with crypto? Yes. You can choose FIFO or LIFO or first in, last out, last in, first out. You can choose all these different methods. I have slides that I will be teaching on this next week, so you can select your method just like that. So you'll love that. And also, everybody, the term that I was talking about, where you can sell crypto and take a loss, that's called a wash sale. A wash sale is, is where you wash the money and you get the loss and you end up with the same crypto. That's okay with crypto. You cannot do that with stock. So wash sales are allowed with crypto, Wash sales are not allowed with stock. So keep that in Mind too, Thomas. Okay, Beat trooper says from YouTube if I'm holding most of my crypto for a year and trading stocks, is it wise to have them both under the same LLC and try and have two separate LLCs? Thank you, Mark. Beat Trooper, you're going to maybe like this or not like this. The LLC has no bearing on saving you taxes at all. So you could do, you could have 10 LLCs, trade stock in five of them, trade crypto in five of them, do mining in five of them, do staking in five of them. LLCs, do not save taxes. Whoever keeps selling this shit drives me crazy. Now why would you to save taxes. Now why would you want an llc, Beat Trooper? Because you might be driving down the road, texting and driving and getting a lawsuit and I don't want them to sue you and get at your crypto. So we want to put crypto in what's called charging order protection Entities llc. Now this is higher end planning. You will need to meet with one of my tax lawyers. You do not go to LegalZoom to do this. You will screw it up and you will not get the right type of llc. It's called a charging order protection entity. It only works in about 13 states. You've got to use it properly. This is another. If you want to buy my calendar and table with all these, look at, I go through and talk about all the different numbers for the year that you can use. And then here's all the different states and the the asset protection strategies that work state tax rates where you save taxes and have better asset protection. So I'll repeat this. LLCs are for asset protection. They are not for saving taxes. So Beat Trooper, I don't care if you have 2 LLCs or 5 LLCs. I do care for asset protection but I do not care for tax savings. All right, Allie from YouTube. I wonder if this is my daughter Alison. It could be allie watching on YouTube. Ali, I'm giving you a shout out. I love you. My daughter Allie, I don't know. Is spending USDC through a Coinbase debit card taxable? They mentioned it is not in their FAQ section. Well, what they might be saying is when you spend it, it's not taxable to take money out of your Coinbase account because you have USD in your Coinbase debit card and then you go spend USD to buy a hamburger. That's not taxable. You bought $100 of Ethereum in your Coinbase account. It's now worth $200. You go spend Ethereum to Buy the hamburger. It's taxable. Because it's not that what you spent is taxable. You've got to calculate what was the gain on the Ethereum before you bought your hamburger. Well, Mark, Wendy's doesn't take Ethereum, they just take USD. Oh, so you're going to take the hundred dollars you bought in Ethereum that's now worth $200, convert it to USD and go buy a hamburger. Spending the $200 is not taxable. What's taxable is that you converted the Ethereum into Coinbase account that you bought for 100 to 200. When you convert that to USD, that's what you're paying tax on. It's not spending it out of the debit card that's taxable. It's when you trade crypto that has grown in value inside your Coinbase account or convert it to USD before you go use the debit card. Hopefully that makes sense. Ali. All right, Max says from Instagram, is a charitable remainder trust a good option for saving on capital gains with crypto? Yes. Now, I want to start listing some of the tax strategies that we've talked about here because I want you to go. Well, Mark, all you did was give me a bunch of bad news. You did not give me any strategies what you can do with a charitable remainder trust. I'll put this up as one of our strategies. Number one, a crt. And we are going to talk about this on our free two hour training next week. You can take your crypto that maybe you got a $1 million of crypto. $1 million. You transfer it to a CRT trust and sell it and pay no tax. Now you have $1 million in your CRT. Based on your age, it will pay out for the rest of your life. You also get a tax deduction when you contribute it. And then when you buy and sell in your crt, there's no tax either. So you can buy more crypto and sell it. More crypto and sell it, no tax. Every four months you get a paycheck or a distribution out of the CRT for the rest of your life. Now when you receive the distribution, you'll pay tax on that, but you never pay tax on the sale or ongoing trading in the crt. Plus you get a tax deduction to put the money in there. Crazy. It's called a charitable remainder trust. You would want to meet with one of the lawyers at our law firm and they can set up a CRT for you. If you have a highly appreciated crypto, the Next thing is you want to use wash sales and harvest losses. That's one of your strategies. You want to hold your crypto to 12 months or longer 12 month hold if you can, because then you get capital gain treatment. If you're doing mining, you want to use an S corporation. Now you can have an LLC taxed as an S corp. That doesn't help you when you trade crypto, but it helps you when you mine. If you're staking as a node operator, you're going to want to have an S corp as well. The next strategy, so there's five strategies. The sixth strategy is you want to trade all of your crypto or mine or stake. So I'm going to go trade mine or stake. You want to do that in your Roth IRA. Your Roth IRA or Roth 401k will pay no tax when it trades mines or stakes. That's a huge issue. Okay, Thomas on YouTube says, I have some crypto that I bought back into. Oh, I said that I'm going to just first in, first out. Yes, you can do first. Okay, I think I already answered this, but it just came through again. I want to make sure. Thomas, he says, I have crypto that I bought in 2019 and then I bought some this year and now I'm going to sell. Can I do first in, first out, which means I'm going to sell the 2019 crypto before I sell the current crypto I just bought. Yes, it's called fifo. And you want to do that because you're going to get capital gain treatment because you held it for more than a year. You don't want to do last in, first out, which is lifo, meaning sell the current crypto that you already bought because you're going to have a shorter holding period. Not good. So yes, you can do FIFO. We'll talk more about that in our two hour training next week. Elevate from YouTube says, Will our exchanges show our losses as well as our profits for taxes? Yes, they should. But not all exchanges give you the reports you need. So make sure you get proper reporting. That's going to show your loss trades and your gain trades and your staking that should all be reported to the irs. Now the whether you use COIN ledger or coinly or your exchange does that for you. I don't know if crypto.com is doing that for clients, but you want that report. I use Nicehash for mining and Nicehash gives me that report. Okay, here's another question. This. Okay. Jeremiah Douglas, Tammy Baron Bull Dave beat Trooper Thomas again. Can you transfer crypto into an ll? Oh, Thomas from YouTube. Boy, Thomas is asking a lot of questions. I'm good with that. Thomas says, can you transfer your crypto into an LLC without it being taxed? If you don't change the token, let's say you own in a wallet, personal wallet, $10,000 of Ethereum and you bought it for $5,000. So you don't want to sell the Ethereum because you'll pay tax and you don't want to trade it for Bitcoin because you'll pay tax, but you want to asset protect it. So you're going to open a wallet in the name of your LLC or dedicate it to your llc and then you're going to want to move that Ethereum to that LLC wallet as long as you don't sell the Ethereum because if you sell it and buy Ethereum, that's a transaction, you're going to pay tax. So you have to be able to transfer that same Ethereum into this other wallet that your LLC owns. And if you can do that, there's no tax. Not all wallets are going to go allow for that. So, and I'm not the best at all this little trading stuff and mining stuff and staking stuff, I just know how it gets taxed and my job is to save you tax. So that was strategy number six. One of the things I'd like to do is offset crypto gains. So if you can sell crypto and buy real estate and create some cash flow from your real estate, I can take the depreciation from your real estate and offset your gains on your crypto. So that's called a depreciation offset. Another one that you can do that I like is oil and gas. So you could take crypto gains that you have and go buy oil and gas. Idcs is what they're called and tangible costs and write them off against your crypto gains. So I'm going to put oil and gas. You can offset your crypto gains with a 401k contribution. I really like that. So I'm going to put that down here. Now I've got other strategies and I've got a PowerPoint deck that'll be at least 40 slides and we're going to go over that for two hours next week on Thursday. It's a free webinar. Click down below to get registered. Also, we've got the two day event in September. Get registered for that. Please come in person. Lunch, little networking banquet, not banquet but cocktail hour, you're going to love it. There's a lot of heavy hitters there. It's going to be good. Okay, Fett from YouTube says, if my Roth IRA is mining, is it also exempt from UBIT? Ooh, good question, Fett. The answer is no. So the way I have my crypto mine set up inside my Roth is I have my. Actually I've done doing this with my kids. So we have Roth IRAs. So let's say there's three of them. I've got more in there, but. So I've got three Roths. And these Roths own an llc. And we put the money in the llc and this is where we trade. And we pay zero tax whenever we trade in this llc because all the owners are Roths. Not me. I'm down here now. If I want to mine, what we do is set up a subsidiary and this LLC is taxed as a C Corp. This is where we go buy our CPU and our digital cards and video cards, and then we transfer our money into here, buy the cards, the CPU and go out and mine. When I get paid in mining revenue, I pay C corp tax at 21%. And then all of that money goes down into this LLC and I trade and pay zero tax. But I do pay tax right there. It's called a C Corp blocker. If you don't do that, your Roth will pay tax of close to 40%. So on mining, we want to block it inside the Roth. Great question. That rehab from YouTube says what happens if you move from a state like California to Florida and sell? Do you pay California or Florida tax if you bought it when you lived in California, your crypto move to Florida and legitimately change your residence where you file a file tax return in California, and then you move to Florida. And then once you establish residency in Florida, you paid and you sell your crypto zero tax. So you want to move to Florida. There are nine states that have no state tax. And again, that's in my calendar here. It's kind of fun. I just kind of know it because I deal with this every day. But let's look at our states that have no state tax. They are Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. Now, the highest state tax rates are California, Hawaii, New Jersey, New York and Washington, D.C. so we want to be looking at those states to get out when it's time to make the big money. There's the five states with the lowest tax rate, Arizona being at 2 and a half percent, which is where I live and love. Colorado, Indiana, Michigan and Pennsylvania. Now, Pennsylvania is at 3.07. South Dakota is zero. Sorry, Michigan. What is our tax rate over there? 4.25. So all those states are our lotus. New Hampshire only taxes interest and dividends at 5%. All right, now, Vade from Instagram. Can you self direct the IRA after you trade the crypto? Can you self direct the IRA after you trade the crypto? Vade? I don't know if I understand that, but let's say I have a Roth, I fund my llc, I go buy crypto. That's self directing. I'm self directing. I'm buying crypto, I'm selling it. No tax, no tax, no tax, no tax. That's self directing. So, okay, anyway, now what's fun is you can open up a directed IRA crypto wallet right now. I've got mine right here at Gemini. I could open up here. Here's my Gemini wallet and it's face activated here. And I can look at my portfolio and trade crypto right now in my. I don't want to flash it. You guys see what I got. But this is my app, my Gemini app. That's my Roth ira and I'm looking at it right now. And how am I doing today? What's up? Crazy day today. Not good. Let's look at the one month though. One month. Okay. Pretty happy with my portfolio for the month, but today was a little ugly. So keep on that IRA strategy and I think you're going to love it. Everybody, I've already said it all. We've got some events next week. Next month. I've got resources for you to get a good tax advisor. Call my tax lawyers. I'm not going anywhere. I've got a podcast called Main Street Business Podcast. Every week, over 500 episodes. Captain your ship, people. Learn about the taxation strategies. Hire a good accountant and work together. Be on the same side of the table. Working together, you'll save millions in the long run. Everybody, thank you for being here today. Thanks for the questions and I will see you next week on Thursday for our two hour session for free on crypto taxation. Tell all your friends, throw it on Discord, put it on your social media. Let's get everybody there and you're going to love it. It'll be a really good event. See you next week.