Beware of Crypto Laws...

Hey everybody. Welcome to another week of your tax and legal update. Q and A, I'm all yours. Mark Kohler here, CPA attorney, best selling author, radio show host, podcaster, YouTuber and just an all around good, trying to be a good guy and doing business on Main Street America. Want to help you guys out answering any of your questions on tax and legal issues. So I'm all yours. Please throw out your questions. Give a little like or a little heart if someone asks a question that you would like to know the answer as well. Kind of let me know which questions to focus on. Got a few things I want to cover here. It's been a few weeks, kind of sad. I've missed you. I haven't done a live YouTube or a live Facebook in a while. Been on the road. So I'm going to give some stuff away today. I'm going to give away some books. We're going to give away a ticket to my upcoming Crypto Legal summit next week. Probably give away a couple calendars. These are hot babies. We're going to sell out by the end of the month, I'm sure. And a word of warning. If you see any messages at all from me trying to talk to you about cryptocurrency or how was your trade or I'm giving away crap or any sort of message from me, it is a scam. I am not on YouTube, I am not on Facebook. Get making any responses or comments. I'm just going to take your questions and go. So if you see my face on the feed talking about some crazy gift crypto thing, scam looking thing, it is not me. I am so sick of ah, these scam artists out there. I've got a, a mirror image of me on Instagram. We've been trying to kill for three weeks. I don't know how to get rid of it. So anyway, be careful out there. Don't click on any of that crap or follow it. All right, well let me get it off the table. What we're doing Next week on March 18, it's a week from tomorrow, it's a Friday and we are doing the Crypto Legal Summit first ever. We're really excited. Now there's some continuing education seminars out there for lawyers to help them kind of stay abreast of current topics in the legal industry. But this is one for the general public. I haven't seen another one out there. We're going to bring on several experts and zoom in. It's completely virtual so you don't have to go anywhere and It'll be recorded, so if you miss part of it, you can watch the recording later. It's going to be on March 18th and you can get to it by going to crypto legalsummit.com the links will be down below so you can click on those and sign up. Let me just say this. This week, if you saw it in the news, President Biden signed an executive order, I think, allocating a billion or 2 billion to research all the legal issues regarding cryptocurrency. Now, some of you I know are concerned by this. It's always a nerve wracking thing when the government comes in and says, hey, we want to help out. Maybe we don't need the government sticking their nose in this. But they're going to. So, you know, whenever the government says we're here to help, that's usually when things go to crap. But anyway, so that's going to happen and we got to be ready for it. So there are a lot of legal issues changing and I'm not even talking tax now. In May, May 19th and 20th, we're going to be in Miami. We got a VIP experience. We're going to have cocktail parties. I want to get a band there one night. We're going to do the Crypto Tax Summit. It'll be the second this year in Miami. We're doing Austin in September, October. It's going to be awesome. So you got to come out. That'll be a live event for about 300 people live. The rest will be virtual. It will sell out. The one in Phoenix did. And it's all about tax strategies and tax savings on your crypto trades, your crypto wealth. Now, we all know at some point crypto is going to run again. We got to be ready for it. We're doing charitable remainder trusts, getting clients ready for that. We're helping clients understand the trading rules of holding crypto under 12 months or over 12 months. But that's the tax summit right now. Next week is the legal summit. So just quickly, before we go into your questions here, let me tell you the agenda. We're going to go over the Biden executive order. What are we looking at there? NFTs and intellectual property law. There are a lot of scams in the NFT arena and we got to be aware of what to look out for. Let me just tell you a little bit of what's going on out there. I mean, this is, these are some of the legal issues with NFTs. Miramax sued Quentin Tarantino over Pulp Fiction. NFTs Rockefeller sued Damon Dash to stop NFT sales relating to Jay Z's debut album Reasonable Doubt. Nike sued StockX for selling Vault NFTs, proof of ownership of limited edition Nikes that included an image of the sneaker in question. Hermes sued creator of NFT collection resembling Birkin bags. Right to make and sell art that depicts the bags. I'm just getting started these the lawsuits are going nuts on these NFTs. NFT site hit piece accused of selling NFTs of songs by musicians for Britney Spears and Taylor Swift without permission. I'll just hit a couple other Lil Yachty sued NFT Opulous for utilizing his name and likeness to make an NFT without his consent. Oh my gosh. Artist Kevin McCoy and Sotheby sued over the 2014 artwork Quantum, first ever NFT minted in 2014. It just goes on and on. And so we're going to be covering intellectual property law, NFTs, what to look out for, what to be careful about when you're Creating your own NFTs or purchasing NFTs for collectible purposes or utility purposes. We're going to dive into the SEC and securities law issues, raising capital, releasing tokens. We're going to be talking about daos. And if you're going to raise money in the metaverse, what to do if you're running a metaventure in the metaverse, how do you structure your business in cryptocurrency or in the metaverse, do I use an S Corp, an LLC or a C corp? How do you buy real estate in the metaverse? And asset protection? Which brings us to cold storage, risks and rewards. And if I die, where does my crypto go? How do I create a state planning for cryptocurrency? Where do my NFTs go? Where do my crypto go? And if I've got it on cold storage, who knows where to find it? This and more we're going to be covering all these topics on March 18th. Next week it's going to be six hours of continuing education. So if you're a legal professional, a tax professional, you can get continuing education certificate for this. It will be recorded. Now here's the first benefit of paying attention today. Right now, only between now and midnight, we're doing 10% off, which is about $20 gift here of 10% off. If you want to sign up between now this broadcast and midnight tonight, the code when you go to checkout is beware 10. That's beware of the legal issues in crypto industry, SEC World, NFTs, Metaverse Metaventures. So beware, 10 is your code and that will get you 10% off on your ticket if you purchase by tonight. It's 200 bucks. It's not too bad. I mean very, very affordable. And it is a tax write off. I'd love all of you to make sure you have your business pay for this ticket. It is a tax deductible expense in your metaventure, in your business, whatever it may be. Understanding these rules. Oh, we were going to talk about too at the agenda at the Legal Summit of taking payment in your business in crypto. In cryptocurrency. So taking payment in crypto. Jack and Jesse, let's make sure that these little, these items that I'm putting out here on the agenda are also on our website. If we can make sure. Let's get those there. So 10% off if you sign up tonight before midnight. The code is beware10. Now, at the end of this presentation, whoever is here in the last 10 minutes of this live broadcast, I'm going to give away a free ticket for next week at the Legal Summit. Also, every 10 minutes for the next hour or 40 minutes or so, I'm going to give away a book. Either the Tax and legal playbook, the self directed IRA handbook. Oh, I got to go this way, right, Corey, let's see. Tax and legal playbook, Self Directed IRA Handbook, what your CPA isn't telling you. Business owners guide, Financial free. We got all this content. Want to give all this stuff away. And then my eight steps workbook on building your business with 60 plus videos. You're gonna freaking love it. And I'm going to give away a couple calendars. These are my calendars that have all of the tax tips and strategies for the year, little tables and maps and of the country and different strategies to be aware of by throughout the country. You're going to love it. Tax rates, Build your five year plan, your ten year plan and then it goes through the months and all of the different deadlines you need to be aware of. So you're going to love that. Can you answer this? Call Jack coming your way and let Matt know what's going on. All right, now let's do some Q and A. The time is yours, folks. Cory, you're in charge of giving me names to give away. Crap. We're gonna. Good stuff. Sorry, Good stuff, not crap. Oh, you know what? I got a directed IRA hat. We'll give this away too. This is my little Tesla truck, my new tax write off. Gonna be frickin awesome when that comes out, but I'm not giving this away. All right. Okay. Let's see. Luis, Louis says the calendar looks great. Thanks, Louis. You're gonna love it. This is the third year we've done it. I've taken all the calendars out there. Dave Ramsey does a good calendar, but it's freaking this thick, you know, it's like a sheet for every day of the year. I don't need that. This is tight. 12 months. It's got a lot of resources in it. Some empty sheets at the back for taking notes. You're gonna freaking love it. Roger says, why are people and the press giving accolades to Joe Biden's crypto executive order? Well, first of all, Roger, the press is going to give accolades to Joe Biden for doing anything. So. So, I mean, the guy waves to everybody. Oh, my gosh. That was the most amazing wave. How did he do that? You know, whatever. But here's why there's good and bad with Joe Biden's executive order on crypto. The good is the more legitimacy. Legitimacy that cryptocurrency and the metaverse is given from a regulatory standpoint, the more tradable it is, the more valuable it becomes. Cross your fingers on the flip side again, whenever the government shows up and says, hey, we're going to help out, usually things don't always go well sometimes that way, so. But there are a lot of scams out there in the cryptocurrency and NFT world. A lot of money laundering going on. There's some bad things going on. And so I have to admit, there's certain things in this executive order that I think are going to help the industry. But again, the press, they're Team Biden, Right? Okay. Valerie says she loves her calendar. Valerie, you rock. I love it. And also, this is a lot cleaner calendar this year. Last year's would get wrinkled and tear. This is. I'm loving it. You're gonna like it. Okay, let's do Rolo. I'm kind of liking this one. How do you roll over a state investment plan into a Roth? Now, what you might be thinking about is a 412. Not a 412. I. What's he talking about there? Which? Jack, Max helped me out. He's probably rolling over. No, Throw me on my phone, please. Okay. All right, everybody. The first thing that Rolo's talking about is how do you get your retirement accounts that you might have right now into a. A Roth structure? What he's talking about is a 403B. 403B's are typically your governmental type pension plans, there's all sorts of types. You've got 401ks, 403b, 457s, IRAs, Roth self directed IRAs and all that. Okay, everybody, hear me out. So Rolo's over here. And some of you might have an old 401k from an old job. You might have an IRA that you've just kind of put money in over the years. Some you might have a current W2 and a current 401K. And in this example, Rolo, I think has probably a 403B. Oh, sorry, I want to clean that up. And there's all sorts of different acronyms that might be thrown around. The word pension might be thrown around as well. What Rolo's talking about, people here is that one of the creme de la creme, the sweetest, fastest vehicle that allows you to build your retirement account, invest in what you know best, and grow it tax free, where you'll never pay tax again. Once you hit 59 and a half, you can pull it out the rest of your life tax free is the Roth ira. The Roth IRA is kind of like your Speedy Gonzales. I mean, this is just the vehicle that we want. Well, you can roll over an old 401k into a Roth, but you have to pay tax if It's a traditional IRA. I mean, a traditional 401k, you might have some old Roth money in a 401k. And if you have old Roth that's going into a current Roth or a new Roth, there's no tax, no tax if you're rolling a Roth to a Roth. But if you're currently working at a W2 day job, you cannot move that 401k. It's going to stay there until you quit or get fired. If you have an old ira, you can roll that into a Roth. If you have an old Roth laying around, you can roll it into a self directed Roth. And I think that's what really Rolo's talking about is they want to self direct the Roth and invest it maybe in an llc, maybe in crypto, maybe in real estate. So if you want to invest your Roth in a more unique way, that's where you've got to do this rollover. You're generally going to have a hard time with a 403B or a pension if you've left the. I'm going to. Man, I wonder, Max, will you do this? We're going to help. Rollout will you call Kevin, get a hold of him and ask him on a 403 if they've left employment with the state. If they can take that 403 and roll it over into a regular IRA and hence into a Roth. Find out when it's possible. I know when they're currently working for the government. They can't, but whatever. Oh, Matt's helping me out this 403B. Why is Matt not on this freaking broadcast? If he wants to call Matt, see if we can get him on here. All right? Rain, sunshine, blah blah, blah. Rain, sunshine. What do you mean, blah, blah, blah? This is exciting. This is so exciting. Okay, let's see. Corey, you're everywhere here. Where am I going? Okay, JK Sprint says can you go over the distribution on a Roth IRA LLC that is inherited. It's my understanding I am 70 years old and I have to start taking distributions. Okay, everybody. So if you're here and your grandma is over here and she has a Roth IRA and dies, you inherit the Roth IRA and it is got. It is tainted. It is called an inherited Roth. Once you inherit a Roth, you have to fully distribute it within 10 years. Once you have inherited it, you have 10 years to take it out. And it's got to be zero at the end of those 10 years. The normal 72t distributions, they don't apply to an inherited Roth. It's a ten year rule right now. So if you inherit a Roth, just know you've got a ten year distribution rule. Once you inherit that, and you're off to the races. Cory, I need to see those questions up here, bud. You're killing me. After you're done working. Okay, so Matt Sorenson, the author. Okay, we're going to give away a book right now. And let's give it to Rolo. We're going to give this to Rolo. This is the book, the self directed IRA handbook. Matt Sorenson, my partner, just chimed in on the chat. That was him calling me on the phone. I'm like, what the hell? Why are you not on this live? Anyway, Matt Sorenson chimed in a 403B. Much like a 401K to another job. Once you leave that job or you leave your state employment as a teacher or whatever you were. 403B, you roll it out to an IRA. So the step one is you take your 401K or your 403B. And step one is you roll it to a regular IRA. So step one is. It's called a rollover. You're going to roll to a regular ira. Then step two is you convert to a Roth and that's step two. And once you're in a Roth position, you can self direct it and invest it in what you know best and never pay tax again. When you do this conversion, you're going to pay tax on the amount of what you're doing. P. Johnson asks when are you having an event in Dallas? We're debating the date for that. I came to Dallas last year, loved it. Love my Dallas, Texas clients. We are going to be in Austin for the Crypto Tax Summit. But I have not put my business owner workshop together for Dallas this year yet. I hope to as soon as possible. I want to take David Hubert's question down here. Cory, a little lower. Not much. Now Rolo, any of you that win a book, the rest of this time you're going to email coreyarkjkohler.com Coreyarkjkohler.com Tell him your name. Corey is making a note. He will verify you are the actual winner. Please no one try to scam Corey. He will figure out you're trying to scam him and then he will hack you. He says. So Rolo, you won the book the SDIRA Handbook. Make sure you email Corey@markjkohler.com okay David Hubert asked what are the taxes on short capital gain, which he means is short term capital gain. Now this is where I'm going to go to my calendar because I created this new table here in the calendar this year, people. I'm going to do it with the trifecta. So let's say down here is your 1040 and you've got two worlds going on in your life. This is your operations side and this is your asset side. On your operations side, if you have a day job, a W2, you're going to pay ordinary income tax on that. All right, Whatever your bracket is in, if you have a small business and you make money, you're going to pay self employment tax plus ordinary income tax. Now if we use an S corporation, we can minimize the self employment tax with an S corporation. Now everybody see what I'm saying? On the left side you're going to pay ordinary income tax on your W2 or your small business income. That's normal, right? Over on the asset side we kind of have three things going on. You could be making money in your IRA or your Roth and paid no tax or have it tax deferred. So this is kind of option one and this is what we really want to do is create as much wealth as we can with no taxable impact. The second option is long term capital gain. We love long term capital gain. It's a lower rate, a maximum rate of 20% fed, but you're still going to pay state. And you might pay Obamacare if you make more than certain amount. But long term capital gain is pretty cool. You have to hold something over 12 months. So if you hold real estate or stock or crypto for more than 12 months, then you get long term capital gain. Now here's, we're going to put this in red because this is what John was worried about is short term capital gain. When you make short term capital gain, which is you hold something less than 12 months, then you pay ordinary income tax rates just as if it was your day job. And that sucks. So if we look at the rates here, I'll just kind of throw out a few thoughts here. If you're single, your long term capital gain rate would be 20% up until about 500 grand. And if you make anything, sorry, at about 500 grand, 20% kicks in. It's 15% up to that point zero and then 15. Obamacare at 3.8% kicks in at about 100, at about 200,000. So when you start making more than 200,000, you got a 15% long term rate plus Obamacare and it starts to kick in. Ordinary rates start at 10% and go up to 37. And so this, this green line is kind of crappy because ordinary rates are what you're going to pay over here and over here and over here. And so it could range from 10% to 37 if you're married. Filing joint. These two are the most common single or married filing joint. It's going to be 10 to 37%, 0 to 20%, and then Obamacare kicks in at 250 grand. The 20% kicks in at again, around 500 grand and taxable income. Oh my gosh. It's just 0 to 37. So anyway, short term capital gain, you're going to pay the same rate you would on your paycheck. That's the answer. Okay. Okay. Wow. All right. Edward Cornaldi Jr. Says, what's up, Mark? What's up, Edward? Can I transfer my VA home loan into an llc? Also, I need to start an LLC with you, Please. Trifecta, dude, I love you. Okay, so let's do. I'm going to give Edward a book. I'm going to give Edward a book for throwing down the word trifecta. Doesn't he deserve one? I'm going to Give him what your CPA isn't telling you because there's telling you, they're not telling you everything. And so you need this book. So you know. And this is known as the gateway drug to tax and legal planning. Because once you read this, you'll never turn back. I want it to be a made for TV movie. So I worked in a sex scene in here. When you find out Viagra is tax deductible, Edward, it'll change your life. So anyway, this book goes to Edward Coronaldi. So there you go. All right. Now he says how do I transfer my VA home loan into an llc? You want the short answer? You're not, you're not going to. And you're like, well Mark, I've got to. No you don't. Hear me out everybody. So Edward is down here with his revocable living trust. That's the bottom of his trifecta. Pink over here is his OP side. He might have a day job, a small business, I don't know. We're not worried about that. He wants to talk about his asset side. He's got a rental property over here and he needs it in an llc. Now what he's done is he's got a bank to loan him money with a VA loan. I love it. Now what he probably did was live in this home for a little while first. Now he's moved out into a new home and he's turned this into a rental. And Edward, I love it. Freaking great strategy. Once you set the LLC up, we're going to transfer the home into the llc. We're going to deed the home into the llc. Now what some of you are already doing is freaking out going, mark, you can't do that. That's you're going to call the due on sale clause in the loan and that's going to be a disaster. And you can't do that. In 20 freaking years I've never had a client have to pay on the due on sale clause ever. Because banks don't care. You know why? Because Edward's still paying his frickin mortgage. So when you're ready to move the rental into the llc, just deed the damn property. Edward, don't go in and ask the bank, hey, can I do this? Bankers need to get permission to go to the bathroom. So you're not going to go ask them, you're just going to go do it and you're going to deed the property into the llc, set up a lease agreement between you and the tenant. You're going to get the proper insurance. And you're going to love this rental property all the way to the bank, baby. This is awesome. Do not worry about the due on sale clause. The worst that could happen, you got to put it back. Who cares? You never transfer the mortgage into the llc. Now, some of you are like, well, I want the asset protection. You're on the hook for the loan personally. There's no way around that. You can't get asset protection from the loan. The LLC is giving you asset protection from your tenant that's going to throw a party this weekend and get all hopped up on who knows what and fall down the stairs and break their neck. You're not liable for that because you told them they can't have parties, but they did it anyway, the idiots. So that's on them. So the LLC protects you. You're golden. Don't worry about transferring the mortgage. Just deed the damn property to the LLC and start treating. That bank account is an llc. The lease agreement under the llc. The property's under the llc. The. I've got podcasts on asset protection for llc. Dude, you just work it. You'll be fine. All right, Now, I want to remind you, if you showed up late, the Crypto legal summit. Crypto legalsummit.com is next week. Crypto Legal Summit. And if you own any cryptocurrency or doing business in the Metaverse. I think I'm going to go play golf in the Metaverse tonight. I think we should. Are you guys in? We're in. I'm going to. We're going to go play golf. Pebble Beach. Let's go somewhere good this time. We're going to go play golf in the Metaverse. It's freaking kick ass. You guys would love it. Crypto Legal Summit. March 18 and 10% off today. Only 10% off by midnight tonight. Beware 10, because you want to beware of the legal issues with cryptocurrency. So beware. 10 is the code at checkout, and I'm going to give away a ticket here before the end of the day. All right. Oh, we're doing test test for Tate's question. All right. What about rolling over a 401k into a traditional IRA? And at what age can I draw from the traditional ira? Well, let's go back to our diagram here. You can take a 401k, roll it over to an IRA, a traditional IRA, anytime you want, as long as you're not still working for the company yet. This has to be an old 401k. If you're currently working for a company with a 401k, do the matching out. The matching out. You guys, you want me to blow your mind with a cool strategy? You ready? This is called the side door 401k. We have the back door Roth. This is called the side door 401k. So we got all these little easy ways to get into the party. Side doors, back doors. We'll hook you up. Okay, so let's do our trifecta. You ready? Okay, so let's say you've got a day job. So here's your day job. And the day job, they give you a 401k. So Tesla has a 401k at work. Now Tesla also has an old 401k from an old from a prior job. You can roll that over to an IRA anytime you want. Go to directed ira.com and you can get. You can roll your IRA over there. Let's give Tesfa the hat. How about that? Tesfa, you just won the hat. The directed IRA hat. Again, I said you got to just email Corey C o R E yarkjcohler.com, give him your mailing address. Look, it's the sticker still on. This is legit. One might say. I could have worn this today, but one might know that this is totally legit. It's totally nice. Okay, directed ira.com, you roll over to this new IRA. Okay, now here's the side door 401k. Tesla says, you know what, I got a day job. I drive a little Uber. I do a little bit of doordash. I do a little landscaping. I have a little consulting business. I sell some crap on Etsy, whatever. You've got a little small business over here also. Tespa might say, well, I've got like Edward, maybe I've got a rental property over here and I got a little LLC with my rental. Well, here's the thing. You cannot set up a 401k with an LLC with a little rental property. Can't do that. No 401k in a rental property business. But what we can do is we can pay a management fee from this LLC over to your small business that's also maybe got some 1099 from who knows what in this little small business of yours, sets up your own solo 401k. Yes, my friends, you can have two 401ks, you can have two Roths, two for everybody, whatever. You can have a 401k at work and you can have this side 401k. So this 401k at work, what we want to do, and this strategy I'm a huge proponent of is you're going to do what's called matching out. Get the match, and then get the hell out. So if it work, they're going to match up to three grand, put in your three grand, and then they're going to match it. You just doubled your money. You've got six grand in there. Invest your little heart out with the crappy mutual funds they give you. But you already got 100% return because you got a match. So you can't bitch and moan too much that you're making 4% on that crappy mutual fund. Right? Okay, Then this year, you can put $20,500 in your 401k, go to the table and go 20,500 if I'm under age 50. If I'm over age 50, I can put in 27,000. So you're going to do 20,500, but 3,000 of it is you've already done used up at the 401k at work. So that gives you 17,500 more you can do. So the side door is we're going to come over here and put 17,500 in this 401k from our side business and do a match over here. Plus I can do a Roth. Plus I can do my rollover. So now what you're doing, look at this, Everybody. You're building four buckets. You have your regular Roth. You have your IRA that you just rolled over an old 401K from. You have your side door 401K that we're going to fund through the LLC here and here. And then you've got your day job where you're just doing the matching out. Pretty cool. I think it's kind of cool. All right, next question. Oh, my gosh. Allison on YouTube says, Please tell me how to put crypto into a charitable remainder trust. I don't know who planted her in the crowd, but I'm really. You message her and told her to. This is. Man, this is freaking awesome. Okay, Allison, you've got the actual expert here on charitable remainder trust. I got max merit here in the house, too. All right, here's how a charitable trust works, everybody. A charitable trust allows you to sell assets tax free. Now, I got some hate mail from or a hate video from someone that's like, well, it's really not tax free, because when you take distributions in the future, you pay tax fine. When you take distributions, you'll pay some tax, but you get to sell the asset tax free and have a bigger bucket to play with. So if you want to use crypto or real estate, you can choose a charitable trust to get asset protection, a tax, write off distributions for the rest of your life, and pay no tax on the sale. Here's how it works. We're going to create. I'm just going to go through this super fast. I've got some videos on this that are awesome. But here's your crt, it's in the middle. Charitable remainder trust. So step one is we create this bad boy. Step two, you're going to contribute your crypto. So let's say you have 1 million in crypto. Now, everybody, we're going to set up the CRT now because when crypto runs, you want to be ready to go with the trust. You, you don't want to say, well, Mark, you're taking too long, or I, you know, I need to, I need the CRT right now. I'm like, is crypto ran yet? No. Well, then chill, because you're not going to transfer it over until the crypto runs. And with the crt, there's no ongoing fees, there's no tax return, no administrative costs until you transfer the money in. So let's get the CRT done, put it on the shelf and wait till crypto hits the price point you want to sell it at. So step two, you're going to donate the crypto at the right time. Okay? So no, there's no stress. We want the CRT ready to go. Step three, we're going to sell it. We're going to sell tax free. So on this $1 million of crypto, your taxes could be as high as 20% long term capital gain, plus 3.8% Obamacare, plus state rates that could be as high as 13%. People, look at this. You're at 36% plus on $1 million on a crypto sale. Someone the other day said, well, there's a crypto tax. No, there's not. This is the tax you're going to get hosed. You want to send a check to the IRS for $360,000. Now if your state tax is lower, that's fine. Oh, well, I sold it in Europe. I don't pay state tax. Wrong. Oh, I sold it in Wyoming or Nevada. Wrong. Wherever you live, you're paying state tax, people, so buck up. So you're going to pay 360 grand in tax or you sell tax free and 1 million is sitting in this bucket. The end of the day, then when you die. Not until you die. You have your whole life here. You, you. Once you die, then the money goes to charity, whatever's left. So the charity gets whatever's left, which is called the remainder. That's why it's called a charitable remainder trust. Now, while you're alive. So that's step four. Step four, you're going to get this charity is going to benefit from your deal along the way. Step five, you're going to get a distribution the rest of your life. Now, I like the Charitable Remainder unitrust. Again, I've had some hate videos that are like. You talked about a Krat. A Krat is totally different. A CRUD is what I really like. For crypto Charitable Remainder Unit Trust, your distribution rate is going to range from 5 to 15%. The older you are, the bigger the percentage. It's based on your life expectancy. Now, what's cool is with a crut, you can continue to invest it and grow it and make it bigger. And whenever you grow the crt, you don't pay any tax inside of it. But every time you get a distribution, you pay tax on the distribution. But what's cool about the distribution is the rate is fixed, but every January, the CRUT is revalued. So if you put in a million in the CRUT and your distribution rate is 10%, then you get 100 grand every year for the rest of your life. But if you make the CRT worth $2 million now you're getting 200 grand so the trust can go up in value and increase your debt distribution even though the percentage is fixed. A CRAT is totally different. The charitable deduction here might be 10% because we got to make sure there's enough left for the charity. But you get this distribution rate the rest of your life. Now, because you did this masterful equation, step six is. And what the hell, this thing's driving me crazy. Step six is you get a tax deduction right now, and the tax deduction is around 10% of whatever you donate. That's what I was trying to say. The 10% is the tax deduction. Whatever's left goes to the charity. It could be worth a million, it could be worth 5 million. Who knows? But that's the Charitable Remainder Trust. If any of you are interested in getting a CRT going, it takes about a month. It's a lot of legal work. You're going to find people out there that might do it for a thousand bucks or people that are charged 15,000 bucks. We're right in the middle. We're at eight grand, tons of work. You get to talk to me. I'm the only one in the law firm, along with my law clerk, Max Merritt, that are helping clients through this. So if you want to get started, you don't pay the whole amount up front. Start with a couple hundred bucks to get a consult, make sure it's a good fit. You meet with Max, we start running tables, we get going. At the end of the process, you have a CRT where you can put crypto in it next year, the year after. You can put more money in along the way or use real estate. Anyway, give us a call. 435-586-9366. Get a consult with Max, see if it's a good fit, and then we'll go from there. All right, next question. Mom's Money Habits. Can self directed IRAs buy crypto through a decentralized exchange? Yes, Mom's Money Habits. So if any of you out there want to set up an ira, let's just say it's called a Roth ira. That's her handle. Mom's Money Habits. I don't know. That's her handle. Okay. All right. Now that you've made her feel bad, I'm going to have to give her a book. Okay, Mom's Money Habits. For your creative handle that Corey is mocking over here, send him hate mail. Okay, the tax and legal playbook is all yours. So, Corey, would you please mail this out to Mom's Money Habits. Email Corey c r e yarkj kohler.com and he'll get you your book. So thanks for the question. Now everybody, what Mom Money Habit says is I want to buy a crypto on a defi exchange I don't want to go to. At our office. @directed ira.com you have a couple options. You can say, well, this is@directed ira.com. okay, you have your account set up tonight. You can just set up a crypto Gemini account and be trading within 24 to 48 hours. So a Gemini account is right set up through your Roth there. But Mom's Money habit says, I don't want to do that. I want to go invest on a different exchange than Gemini or even a defi type structure. And I even want to hold my tokens in cold storage or something. We're okay with that. There's lots of options. What you have to do Mom's Money Habits is you have to sit up, set up an LLC that's owned by your Roth IRA, we do this at the law firm. And $800 plus filing fee, you got your LLC. The LLC now sets up the wallets that you want to use. The Roth money goes into the llc. The LLC buys your crypto. Now, a third option is you can set up an LLC with your Roth. Your husband's Roth, your kid's Roth. That's not Kid Rock, that's Kid Roth. You can have a kid Roth, and you can have multiple partners in an llc and then go up and set up a Coinbase account. You could set up a. Oh, my gosh, where are we at? There we go. You could set up a Coinbase account. You could set up a defi account. I mean a wallet, whatever you want. One thing that we're doing in a family LLC of mine is, is we're doing mining. So we're crypto mining in our Roth IRAs as well. So anybody out there, if you want to just start trading crypto, and you're okay with the Gemini platform and whatever's on Gemini, you can have an account set up within 48 hours. Go to direct@ira.com tonight, and you're off to the races. If you want to do defy wallets or a different wallet than Gemini or exchange, you have to set up an LLC first that's owned by your Roth ira. And you'd work with one of our lawyers. It's going to take more of a week or two to get everything set up properly. So you can, because you're going to have an ein under these LLCs to go out and set up your exchange. All right, let's give away a calendar. Let's see Roger Martin. How about Roger Martin? Can we give him. Oh, you have a winner. Ryan Riggy Leaf. Rigor Lee. Ryan Riggy Lee. Ryan Riggy Lee. You have won a mark J. Kohler 2022 calendar. These are hot little items. You're going to love it. Email Corey Markj Kohler.com and he'll send you your calendar. All right. Sorry, Roger, you got screwed. No calendar for you. Sorry. Sorry. Sherry says, Mark, are you a lawyer or a cpa? This is really nerdy, Sherry. I'm both. I'm a lawyer and a cpa. Yes, I went to school for way too long and no one likes to talk to me at parties. Okay, Brenda Tan says, not crypto related, but I am having a roadblock on finding non recourse lender. Do you have a recommendation on lenders? Who are we using on our non recourse lenders? Titan Nor is it Lincoln or do we have two of them? Can you send them a, send them a link. Oh yeah, I think it's Titan. Brenda. Now everybody out there, if you want to buy real estate inside an LLC with your retirement account or even yourself and you want to use what's called a non recourse lender, that means that your FICO score, your credit does not matter. Most banks are going to want about 40% down, a 10% cushion. So they're loaning 50 cents on the dollar. So if you want to go buy a hundred thousand dollar rental, you can get banks that will loan $50,000 and you could raise the money for the down payment from multiple retirement accounts or people. That's called a non recourse lender. I'm going to have her email you. Is that all right? Are you Maxwell, KQS. Okay, so it's max@kkoslawyers.com and if any of you want the A list, I think we have at least two, maybe three non recourse lenders that we can refer you to. Now we don't recommend we refer. It's up to you to do your due diligence, people. But MaxQs lawyers.com just put non recourse lenders in the subject line and Max will send you those. Send those over to you. So non recourse lenders. All right, can I give away another book? Tell me who's a winner. Who's a winner today? They may have been a loser yesterday, but they're a winner today. Yash Y A S H Yash Patel, you just won the Business Owner's Guide to Financial Freedom. If you're a small business owner, you want to know what Wall street isn't telling you. I've got it right here, so email coreykjcohler.com I'm going to give away another calendar, my 8 Steps Workbook, which is the creme de la creme. $99 on Amazon, 60 videos in this. You're going to love it. And then I'm going to give away a ticket to our crypto legal summit next week. Also, I will give you the code again for 10% off your ticket for next week. All right, what question am I doing? Okay, this is XOOQ says, hey Mark, every lawyer I talk to about creating a trust looks at me like I'm crazy because I'm young and I don't have kids or $10 million. Why are they looking at me like I'm crazy? Because you're smart and they're Dumb. And I mean that. I actually said this. All joking aside, my daughter. Okay, I'm gonna give a parallel. You guys will like the story. So this week, I was talking to my daughter Sydney. She's a realtor, Southern California, Orange County. If any of you are looking for a house, I'll hook you up. Anyway, that was a shameful plug. Not a shameless plug. Anyway, so my daughter Sydney, she's a realtor down in Orange County, California, and she was going to. Going into a meeting this week with some buyers, and she was like, hey, dad, how would you approach the meeting? And we're having a good talk. That's what dads do. We love to talk to our daughters and help them out. And so we were having a talk, and I said, what did that training video that you watched from this broker that you were going to a while ago? What did that training video suggest? And she started to tell me, and it was the dumbest freaking training video I could imagine. I was like, are you serious? They said, lead with the rules of agency. That was their training video. It was so stupid. And I'm like. I said, sydney, follow your gut. You're a good communicator. Go into that meeting and just be you. And that's good advice for many of you. I think. Sometimes we think lawyers or accountants or someone is going to do it a different way, when really we can follow our gut and just be a better communicator than a training video on how to handle a realtor presentation. Just sometimes it's. The trainings out there are terrible. Well, what I told Sydney as we were talking that night, literally, I gave her this advice. I said, you would be shocked how many CPA and lawyer trainings I go to that I think I'm on a different planet. Like, I'm literally. Who are you? Do you ever really talk to a client or a person? It blows my mind. Now, I don't mean to sound like I'm prima donna or jerk or anything, but there's a lot of lawyers out there. They're just trained to think in a box. It's like going to the bank, trying to get a loan. It's like, if you're not in this box with a W2, Fannie Mae, Freddie Mac, blah, blah, blah, you know, you're not. You just don't get any help, right? So it is very common for me to meet other lawyers that I have to literally try to break them out of this mold of stupidity because they're trained at law school to think linear. Certain Ways. Mark Kohler, I think outside the box. So, xooq, all of you watching today, let me tell you, when you need a trust, there's two options. You can have a trust or you can have a will. 50% of Americans don't even have either of these. They die. What's called intestate, meaning there's no plan at all. Do you know there's entire court systems in entire lawyers and judiciary systems that are built, literally built, billions of dollars spent on this every year of people that die without a plan. It's a mess. Prince, Purple Rain, Prince died without a will. It's been in court for years. It's a disaster. So what I recommend is all of you out there at least have a trust or a will. Now, what are the big differences? A will says who gets what. Isn't this fun? I'm actually answering the question. I think. Think this is kind of interesting. A will says who gets what. You're also going to appoint an executor. An executor? This is really your party planner. I mean, really. Some of the best food I have is at funerals. I mean, you really want someone that can put together a shindig. You know, I'm talking potatoes. You know, like those au gratin potatoes with the cornflakes on top. I love those. The best at the funeral. I mean, really. Right? We're going to a funeral to feel better. So the ladies are just cooking food. It's the best. So anyway, executor, they're going to do your eulogy. They're going to plan the food. So you want a good party planner. I'm offending someone, I'm sure out here. Okay, next, if you have kids under age 18, you want to name a guardian who's going to raise these little ficas? See, we use the F word of fica around here. You might have a different F word, but I call my. You know, all those little kids are little ficas. So these little. These little kids, who's going to be the guardian of these kids? You've got to decide. And if you write it down in a will, you get to choose who's going to raise these kids. Go out and ruin someone's life. I mean, this is a really great opportunity. The last thing someone wants to be as a godfather or a godparent, just ruin their retirement. I mean, this just wholesale, you know? Okay, so you, you get to decide. Now. That's a will. Okay. It's kind of crappy still. It still has to go through probate A judge has to approve it. It's public, and it's going to go through the public system, and everybody's going to see what's under your kimono. Robin Williams died and had a will. It was all public. That's better than no will at all. But all right, now, here's why a trust is cool. It says who gets what when. And you don't have to have millions of dollars. If you have a hundred grand in an IRA or a hundred grand in a freaking rental property or your own home equity or a little life insurance, you can say, here's how the kids get the money. Or my niece or my nephew or my brother or my sister or my mom or my dad. You can say they get a hat, you know, a third when they're 25, a third when they're 30, a third when they're 35. You can say, get money if they go to college, or they get nothing if they're on drugs. If they're still married to that bozo, they get nothing. You write the rules. They call it dead hand control. Your hand comes out of the grave and just jacks up people's lives. Awesome. You'll be dead. Who cares? Screw them up, they will hate you. It's good stuff. Okay, now who gets what when? You're going to still have an executor, but now you get to name a trustee. A trustee is really good with money. You want to choose one or two or three people. I don't like to because they get deadlocked. So you have a trustee, you're still going to have a guardian. So guardians are good with kids. Trustees are good with money. Sometimes you want to choose different people for different jobs. Okay, now back to X. He goes, mark, I'm in my 20s. I'm not worth $10 million. I tell a lawyer I want to trust, they look at me like I'm crazy. Because here's what they're missing. A trust is something you can grow into. Once you set up your trust, you can use it the rest of your life. It's a revocable living trust. We call it an rlt. Revocable Living Trust. You can change it anytime you want. You know, I had a client that would get drunk every Christmas and change his trust. And he calls kids. This year you're getting nothing. And then next year you're getting it all. You know, I mean, they're like, dad, whatever. We're sick of it. But anyway, you can change it every freaking year. I'm not kidding. I Had a guy that did that. So you can change your revocable living trust whatever time you want. But the biggest benefit is not only having a plan for all your crap, it's privacy. That's what I love about a trust. I don't want to call it the Mark Kohler living Trust. I want to call it Blue Sky Trust. No one knows who's freaking owns it or runs it. So your trust becomes the owner of your real estate, your crypto, your LLCs, your business. Your trust provides a veil of privacy. It's not protection, but it's privacy. This is what I love about privacy and protection. This is the camouflage jacket compared to the bulletproof vest. Privacy is the jacket. The LLC is the vest. And if we can combine the two, we're killing it. So that didn't sound good. But anyway, the point is, you want to combine the two. And so X, O, O Q. I think that was it. The trust is about privacy. But don't let anybody charge you more than we charge 1500 bucks for a trust in any state across the country. Hell, you can work with Max here, too. Great guy. So you can work on your trust. Fifteen hundred bucks. No matter how old you are, you can have privacy. You can lay out all these plans. Good stuff. All right. That's right. XO says the trust, this trust that you set up, this revocable, even trust, is the beginning of your trifecta. Are they. Dafine says, are they state specific? We. We set them up. And they go with you wherever. Do you know I set up my trust 20 years ago and I've lived in four states since then, haven't changed it at all. I mean, one kid pissed me off. I wrote him out for a year or two, but then I put it back in. But you can change it all you want, but. So if you're in. She says, I'm in Georgia, but I'm going to move to Texas. Or my. Oh, sorry. My beneficiaries are in Georgia, but I live in Texas. Dafine, that's okay. In fact, your beneficiaries could be in another country. I have clients that set up their trust and their families back in India. That's cool. Your trustee here divvies out money the way you say. So once we set up your trust, it goes with you. It's portable. Wherever state you move into, you take your trust with you, and it's the foundation of your trifecta. So your trust owns your llc, it's the beneficiary of your Roth, and it owns your S Corp. Boom, bada bang. There we go. So who should I. Who am I giving away stuff to? Corey, I got to give away two more things. XOOQ gets a calendar. Xooq for your good questions. Corey just awarded you with your calendar. So email Corey arjcohler.com. sarah says we need a trust. Sarah, you rock. You can. Eamon says, can you require a DNA test where only your biological kids get the money? Yes. Guys, I know this sounds crazy. You can require whatever the hell you want. I've literally had clients say they've got to go to a training. I had a client that it was quite flattering. They said before they get their money, they got to go to Mark Kohler's two day workshop. You can say they got to have a college degree, they got to graduate from high school, they got to be married. There's a whole movie based on this. What is the one where they have to be married to get their money? What was that? Seven days or nine days or two months? What was it called? There was a whole movie. The Proposal. Was it called the Proposal? Proposal? That's a chick flick. Cory, you watch the Proposal? Oh, Ryan Reynolds is cool. That's true. Okay, now everybody, you can require whatever the hell you want. You can say they have to have blue hair. I had a client. Now this may offend some of you, I apologize, but you can put whatever. I had a client that said if they have any tattoos, they don't get it. If they are on drugs, they don't get it. If they are married to this person, they don't get it. If they have. There's a lot of things you can put in there. So if you want to say they got to get a DNA test to make sure they're my kids or whoever, I'd say if you're putting that in your trust, you might have some other things you want to be working on. But I'm just throwing that out. Just saying we charge 1500 bucks for a. Now when you do a trust, you get powers of attorney. A will the trust pull the plug. If I'm a vegetable, I put in there rules for pets, rules for guns. I mean, we throw in the kitchen sink. So 1500 bucks. Okay, who are we giving a book to? I'm going to give away my eight steps. This is eight steps to grow your business. If you already have one or eight steps to start your business, you can get them on Amazon right now. They're so I have QR codes in here where I update the videos when I'M not busy. And you buy them on my website@markjcohler.com as well. Who's my winner? Corey? Just E. Where's it at? Just Steve. J U S T Just. Okay, Just Steve is a winner. So Just Steve. I want to write that down. You just won my eight steps workbook. Email coreyartjkohler.com okay, I'm going to take one more question and then I'm going to give away a ticket to the Crypto Legal Summit, which is a date a week from tomorrow. It's March 18th. If you don't win, you can still get 10% off between now and midnight. Beware of the legal issues. So it's beware. 10 is in 10% off. So beware 10 at checkout. Go to crypto legal summit.com and I'll see you next week. On Friday. I'll be with you for six hours. We'll have a good time. Okay, what question are we doing? Can you plan the summit in Austin the weekend of the Grand Prix so I can ride off my trip and go see the race? Let's see when it is. When's the Grand Prix? Can you Google that? When's the Grand Prix? I would love to go to that. Okay, the crypto tax summit in Austin is September 29th and 30th. September 29th and 30th. And so while I'm doing this, I even found it faster than you guys. October 22nd, 24th, October 22nd and 24th, 22nd, 23rd and 24th is the grand Prix in Austin, Texas. My Crypto Tax Summit will be the month before on September 29th and 30th. All right. Okay, last question. Is it possible to. Let's not do that. What would be the best to start a small business? I'm going to say this one. This one's good. Let's do Milton. Okay, Milton Morales, everybody. This is a good darn question. Maybe it's PG13 tonight. This is a great damn question. Would what would be the best to start a small business without an llc? What's the best business? Okay, everybody, that's chapter one or step one in my little eight steps. Concept design, service, product development. You know what the first question I have? You do. I do. I have. You do a little workbook. I have a little video. And I have an hour and a half town hall meeting where I answer this question of Milton. I actually didn't choose the question because of this. It just came to me, said. The first question I ask you is, what is your What. What are you passionate about? What are you good at? Do you have any partners that complement weaknesses? Then I have you list what are five business ideas that I could start? Then I want you to start researching them. Find out your competition. Go out and do a little recon. For us in the 80s, this is 80s. For those in the 90s, this is psych. For those in the 2000s, this is Bosch. Okay, so you're going to go out and you're going to go out and just do a little bit of research, find out what the competition's doing. I had one of the attorneys in my office. It was really a powerful experience. This last week, we did a little retreat down to Phoenix. Phoenix, Arizona. And we'd been bugging this attorney to write a book. We're like, you need to write a book. I've been bugging him for a couple years, max. You'll love this. And this attorney, after the workshop, came and said, you know what? I'm not going to do it. I'm not going to write a book on that topic. I'm going to write a book about what I'm passionate about. And we're like, love it. What are you passionate about? You know? And we started to workshop it and talk about it, and it was really exciting because this attorney had felt like he was being pressured to write something, a topic you really didn't care about, and hence why for a year or two, he had taken no action. Some of you might have a parent that wants to pass on a business to you. Some of you might have a spouse or friends that are saying you should start a business doing that. Some you might be going to college for a degree you really don't want. Find what you're passionate about and do that. Life is too short. If that's what gets you up in the morning and you're excited about it, then freaking do it. There's a guy sitting in this room right over here on my right. He loves real estate. He wants to do real estate. He's freaking gonna do real estate. Find what you're passionate about and freaking do it. That's what matters most. If you want to be successful, try to do something you love. If you want to be unsuccessful, start doing something you don't really like doing. What do you think is going to happen? Right? The LLC comes later. The S Corporation comes later. I mean, now, if you're going to go out, raise money, and you're going to go full bore, you might set up your LLC on day one. That's cool. But some of you, it's just getting the sole proprietorship going. Start testing the idea. Sell some of this crap on ebay, Go out and screw up someone's house and wallpaper their bathroom until you figure it out. But then you form your LLC and then you graduate to the S Corp. And on our trifecta, that's the left side. You're going to graduate until your business is off to the races and really cranking. But find something you're passionate about. Build a business plan around it. You can make money doing a lot of things. Make money doing something you love to do. Now, some people are like, well, I don't want to ruin my hobby making money out of it. Okay, that's fine. You got a hobby, that's cool. But what's your day job? Do you know? 50% of the department of labor did a survey. It's now they do it every year. This last year again, over 50% of Americans. Check the box that I hate my job. Over 50% of Americans spending 40 hours a week or more doing something they hate. Really? Some of you might be in that situation. Keep the day job for some stability, for some benefits, and then on the side, I want you right now building a business plan for your idea. Whatever it is, get it going. Let's get you out of debt, let's build some reserves, let's start funding your retirement account, and let's build a business so that you can live the American dream doing what you love. And then when that business is making enough money and it's matured and it now your day job is taking you away from making more money, then you quit the day job. What freaks me out is when people are like, I quit my job to start a business. I'm like, oh, my hell, I hope you didn't think I told you to do that. All right, next week is the Crypto Legal Summit. Want to see all of you there. I'm gonna give away a free ticket right now. $200 value. Corey, who is our winner of a Crypto Legal Summit ticket? Deborah Blake, you are a winner. Is that DO D E B O R A H B O R A H. Whoa. I did it. Deborah Blake. Deborah Blake, you just want a ticket to the Crypto Legal Summit. If you don't want to attend, you can give the ticket to someone else. Next week, March 18th, everybody. Six hours. I think you're gonna love it. Thanks for being here today. Oh, everybody, if you won something today, email Corey atmarkj.kohler.com and Corey will send you the swag of whatever you won. Thanks, everybody. Don't give up on the dream. Keep trying. Just. I'm going to say this last point to everybody. If you feel like you're spinning your wheels, if you feel like sometimes you're a loser, if you get up in the morning, you're like, what the hell am I doing? If you wake up in the morning and look at your bank account and you get sad or frustrated, guess what? The rest of us, we feel like that a lot of times, too. I do, too. Sometimes we just have bad days. But it's okay. Life is 50 50. Start thinking the thoughts you want to think. Start thinking about your future. Make a plan. Start taking action. Surround yourself with people that believe in you and talk about your plan. Talk about your ideas. Share your ideas and get out there and just start trying. Life's too short. Don't give up and I'll see you next week.