Crypto Market Crash?! Wash Sale Gold Mine | Mark J Kohler LIVE

5, 4, 3, 2 and 1. Please do not go anywhere for at least one minute. I need you to listen to this broadcast. This is so important. I know I'm going to make this fun, interesting and educational. But here's the gist of it. I know many of you out there are having a lot of fear and anxiety and frustration. Just some of you are okay, I'm sure. But some of you may be freaking out a little bit about this market dip crashes. But when it's been called out there. So I titled this market crash, I've got a solution I want to talk about. But even more than that, I want to give you some field of vision. I want to give you some hope, I want to give you some ideas, I want to give you some encouragement and I want to ask all of you to please stop what you're doing for a moment. Watch this broadcast. Whether you're catching this on Facebook or YouTube, I'm not going to waste your time. My name is Mark Kohler, CPA, attorney, author, podcaster, YouTube, blah blah blah. But I'm also a crypto investor. I'm a stock investor, I'm a real estate investor, I'm a cold, hot blooded American whatever, trying to live my American dream. And I know it can be scary when we see these dips in the market this last few weeks. And then even yesterday was just nuts, right? So hang with me here. I want to give you two tips. Corey, let's go to my screen. I want to give you two tips here Now I was making some calls before this. I talked to an incredible life coach. I called some crypto investors, I called two other CPAs. I'm like gathering data. I'm ready to go today for you. I've got some killer important information I want to talk about this how to reduce any fear you might be having. I know some of you are like, oh, I'm in for the long haul. I'm good deep down. You might be freaking out a little bit. Some of you might be having a really hard day. Now as an aside, if you think you're having a hard day at this moment, my grandson, I just had a baby grandson, my first one last month. As we speak, he's getting circumcised. Circumcised. That, that's right. Right now. Now I asked my daughter and son in law if I could share that. They said, yeah, go and tell everybody you think you're having a bad day. Just he's under the knife right now, my little guy. I mean, you know, some of you feel like you got circumcised with this market? Seriously, My little grandson's over at the doctor's office two blocks away. Poor little guy. We're rooting for him. I'm going to drop off a bag of isolator for him. Okay, now, getting aside. This is going to be good. All right, now, two possible solutions for you. I want to give you these two solutions. You're going to love this. No one's talking about this either. Corey, can I get those up? Oh, I want to throw this out. Anybody that sees a post with my face on facebook about some bitcoin crap, it is a scam. Do not respond. Do not engage. I wish we could get rid of these bozos. Now, on YouTube, you're not seeing this garbage, but on facebook, somehow, they take my face, put it out there and say, oh, there's this bitcoin bonus crap. Avoid it. Ignore it. It's a scam. Corey's trying to block him as we speak. All right, now where I want to see my slides over. All right, how to reduce your fear. Got this tip just, just now from a coach that so smart. Trying to help people out there that are stressed out today. Two strategies. One, increase your field of vision. I want to give you some history on cryptocurrency. We'll use bitcoin as the example. And number two, you got to take action. This is like private Ryan, Tom hanks on the beach of Normandy, Hiding behind these metal barriers. Remember those metal barriers? They're actually very interesting. They would come to be known. Pop in as their common term now are resistance points. They were resistance points to try to stop the invasion on the beaches of Normandy into France. And what would happen is if the soldiers would stay there out of fear and getting paralyzed, they get killed. They got to keep moving, Storm the beach, keep going. These resistance points oftentimes make us want to freeze and stop. I want you to take action today, and I'm going to give you some suggestions. And, Corey, can you hand me my bag down here? I got a yellow pad in there. All right, now, increasing your field of vision. Check this out, everybody. Now, this is deep. Now, Corey, I want everybody to see this as good as possible as well as possible. Boy, a terrible grammar there. Sorry about folks. Okay. And so minimize me. Let's show them the screen. Some of you are on your phones now. Check this out. Increasing your field of vision is. Hey, don't operate in a vacuum right now. You're like, oh, my gosh, bitcoin's down to 28 grand. You know, sky's falling. No, no, no, no, you're okay. We're going to, we're going to look at the history of bitcoin just in the last five years. Check this out. The bitcoin. We're using bitcoin as the example here. Everybody check this out. The all time high of bitcoin before December of 2017 was 19,000. That was it. That was their all time high. It dropped 81% drop to December of 8. Sorry, I've got the actual dates here. That's why I wanted my little piece of paper here. Oh no. Did I not bring that other paper? I didn't. Okay, so the next drop, I can't believe it. I wrote all these great little dates down. The next drop was an 81% drop to, I think it was in February of 2019, 3500. But then we had the first big run. So the first big drop was 81%. And then we had a big run, a 3x run. It went from 1500 to 12,000. Now by mid 2019, this is like, I think it was July of 2019 is when we hit that $12,000 high. We had a 60% drop. And this was everybody. This was just two years ago, in March of 2020. So this is 3:20. In 320 it hit $4800. That's just two years ago. Bitcoin was up $4800. How many would you love that price today, right? I mean to buy. To buy, right? So on, in, on. In March of 2020, just two years ago, we hit 4860% drop. Then we have our next run. So we had our number, our first drop, our second drop. We had our first run. We had our second run. So look at this run. 13x run to $63,000. That was in early 2021. Then we had a drop down to 30,000. This was in, I think July of 2021. We had a drop to 30,000, a 52% drop. That was our third drop. And then look at this. We had our third run, a 2.1x run up to 65,000. This is the all time high bitcoin. Now using this as an example, everybody hang high. I know some of you are stressed out, frustrated. I asked you to give me your time here. This is precious time of yours. I know, but what I want to do is increase your field of vision. Look it, there's been three drops up until this last drop and three runs, a 3x 3.4x, a 13x run, and a 2.1x run. It's okay. We been down this road before. Now we're in another drop, a 57% drop, which is not even on this. I mean, that's really only the third worst of these. We had a 60 and 81%. We're at $28,000 and change today. This is our drop. Increase your field of vision. Are you a long timer? Is this your tribe? Do we think cryptocurrency is going away? No, it's not. Are you kidding me? I just had a call with another crypto expert in the metaverse just right before this. He's like, cryptocurrency is going away. There's countries that have adopted their currency in crypto now because it's more stable than their currency. The US Government, Joe Biden, signed an executive order to create a national cryptocurrency. The price is down. The price is down on Netflix. Does that mean I'm going to sell? You know, never buy Netflix again. Netflix is going in the hole. No, stocks will go down. They'll come up. Crypto will go down. Crypto go up. It's the real estate goes down. It goes up. Be patient. Be in for the long haul, and you know, it's going to be okay. I want to say this. We had it. One of my staff members this morning, sorry, I get a little emotional. Had a call from a client that was just desperate and says, mark, with this last drop, he wants to talk to Mark. He was talking to one of my staff. I don't want to share names. Said I've lost everything. And. And I need some help with this, that and another. And we're like, whoa, whoa, whoa. The market's down right now. Hang on. It's not the end. You know, you don't need to sell everything. You haven't lost it. Now, some of the. Some currencies we've had, Luna, that's gone down to zero. We'll see what happens. There sure there's been some market adjustments, but hang on, everybody. It's okay. Keep your head down, increase your field of vision. It reduces fear. I know I got lots of comments here. I want to talk about the. Well, take comments here in a moment. Now I want to give you the second tip, okay? You're getting direct from life coach 101, right? Life coaching 101. Okay, number two, keep moving. Keep moving and take action when you're moving. It helps just with endorphins and mindset to reduce fear. Because when you're moving. You're focused on the future, not on the current situation or the past. You're looking forward. So I want to give you a tip here. It's called the wash sale. You guys know the wash sale. If you don't, we're talking about it at the crypto tax summit next week. I want to get you involved. I want you part of the tribe next week. Somebody like, why am I talking about taxes when I just lost everything? It's, it's going to come back. It always has. Be patient and you want to know the strategies. When we get that fourth run, we're going to have another run. I don't know when it's going to be. I'm sick of, I'm not a financial advisor. We don't know when it's going to be. It's okay. Here's the wash sale. Now check this out. This is how we want to, we'll focus on this. The wash sale is something you cannot do with stock and you would never do it with real estate because of the cost of the transaction. Let's say, for example, I have a rental property. It goes down in value. Oh, I'm going to sell it, take a write off and rebuy it. The cost of sale and repurchase, you can't do it with stock. The rule on Wall street has been for years, and this is IRS101, you can't sell a stock and rebuy it. Like if you own Netflix right now, right now it's down 75%. You're like, ooh, I'll sell it, take a loss and rebuy it. Can't do that. Can't do it with stock, but you can do it with crypto. You can take a wash, you can take a bath, you can take the loss and rebuy it one minute later. So here's how this works in this example. So we go back to the. This is the same diagram we saw a moment ago. So look at here. Let's say you've bought crypto. Now we're going to go with bitcoin as the example here. I know Ethereum, Litecoin, all of them have different price points. But let's just stick with bitcoin here for a moment. If you bought bitcoin since July of last year, that means you purchased when it was higher than $30,000. It's been on a run since July of last, last year. If you purchase bitcoin at any point, let's say you purchased it for $40,000. So you purchased at 40,000. I got to hit this button here. I got it. Thanks, Corey. So I purchased at 40,000. Today it's at 28. You, you can sell your Bitcoin and rebuy it five minutes later and take a $12,000 deductible loss. That's deductible against stock gains. It's deductible against real estate gains. That is a capital loss that you can deduct against other capital gains. Right now, can't do a stock. You would never do it with real estate because of the cost of sale. So this wash sale allows you to take action. Now here's the strategy. If any of you have bought a cryptocurrency for more than its value today, sell it, rebuy it. Cha Ching gold mine. I got a loss and I can use it against other gains. That's the wash sale. Now, if you purchased any crypto, well, I'm going to use the bitcoin as an example. If you purchase bitcoin somewhere in here, so you purchased it for less than 28,000, you don't do a wash sale. You don't do it because there's no loss. You may say, well, it's down from 65. Yeah, but you didn't. You don't get to capture that loss. You have to look at what did you buy it for. That's your basis. So don't worry. That crypto is down from 65. Look at what it's down from where you bought it. So if you bought it for 40, now it's 28. You can capture that loss. Now let's say it's Ethereum and you bought Ethereum for 2500. And what is it down to? Right, Max? 1800 right now or 16. Something like ETH is down to 16. Let's say it's 16. That's a $900 loss. Okay? You get to take that because you purchase price, your purchase price is 25 and the current price or fair market value is 1600. So you want to capture that loss and then just rebuy if you feel so inclined. You can do that. Sometimes the cost of these transactions is very, very low. It's not like a real estate sale. That could be, you know, major cost. Right? So, and you can't do it with stock. So it's unique to crypto. So, all right, let's do some questions. Let's do some Q and A people. I just want to encourage you to increase your field of vision. Look, long term, don't make any rash decisions in a week like this week. Just hang tight, relax, take action on a wash sale if you can and increase your field of vision. You can do this. It's okay. Don't let your thoughts drive your feelings. Put new thoughts in your head. Hey, I can do this. I'm in for the long haul. I. I believe in cryptocurrency. I know bitcoin's going to go up, or I know my altcoins going to go up. Read to yourself the thoughts that really serve you, not the thoughts of fear. You can do this. All right, Davenport. Thanks for saying that. Sorry, that just hit me hard that Davenport's listening and said thanks, and I just really appreciate that. Now Saxham says, should I buy Luna right now? I don't know. Okay, now you're expecting a little too much out of me. Come on. Come on. I appreciate the confidence, but you guys decide on what you want to buy right now. What I'm suggesting is if you own something that you believe in for the long haul, sell it and rebuy it. That's tax advice that I'm totally good with. I'm not telling you to sell something and then it's going to go up later and you're going to be pissed at me. I'm not telling you to go buy something that might go up. I don't know what it's going to do, but. But you can. If you're going to stay in for the long haul, sell by. Sell and rebuy. Sell and rebuy. There's nothing wrong with that. It's IRS code. Totally cool. You're good to go. All right, get rid of your animation. I don't know what FUD means. What's that mean? I'm tempted for picking up. Okay, all right, let's see some comments here or questions that I can maybe help it. Corey says, McDadka, can you sell and buy right away or it takes time to get your credit from sale. I never sold lol. Dadka. This is a great question, everybody. Listen, Dadka says, how long does it take to sell and rebuy? It's going to depend on your exchange. But I was just our NFT expert that's going to be helping us at our crypto summit next week. Derek Anderson. You'll get to know him. If you come, you get an NFT for showing up at our crypto summit. Derek was, the other night was like, hey, we need to buy some Solana. We were doing some NFT work and he said, do it with A dollar. He goes, let's just test it. So the one thing I would. I would do is just sell a dollar's worth, see what it does, you know, don't do the whole transaction. But Derek was like, hey, just sell a dollar, see when it gets in, or transfer a dollar, see when it gets there. And if you're like, oh, that wasn't that bad, then you're good to go. Just see what. And also, of course, everybody check what your transaction fees are going to be. Be careful. I don't know what exchange you're in. Are you in Defi? Are you at Coinbase? Are you at Kraken, Voyager, Gemini? I don't know, but look at your exchange costs for the transaction too. Brett says, yo, Mark, I need advice. You answering questions today. So excited to catch you in a live. I've been watching you all day. Brett, you're awesome. Throw down a question. I'll do my best. Mom's money habits. I love you, Mom. You're on here all the time. Hey, Mark. Coinbase bankruptcy. If I bought crypto through institutional Coinbase, self directed, then moved it to Metamask, is my crypto safe? If Coinbase goes down, move it to cold storage. Corey, is she implying that Coinbase, the exchange, might go bankrupt? Is that what. Oh, my word. Money Mom. You're thinking Coinbase might go bankrupt? If you're making decisions that Coinbase is going to go bankrupt, that might be off out of my pay range. Okay, everybody, this is a good question. Money Mom. All right, everybody pay attention. Let's say you've got your crypto on an exchange and you're worried about the stability of not the coin, but the exchange, where your coin is at. You want to move it? Hey, it's free country. Move it to another exchange. And if you want to go to cold storage or defi, that's okay. Be careful where you move it. I don't know where to move it. I don't want to give that advice of which exchange to use. I don't know if Coinbase is going bankrupt. That's a new one for me. But I would just say move your coins that you feel confident in to a different exchange without selling them. Because if you sell them, they. That's a taxable event. If you exchange them for another type of coin, that's a taxable event. And you may. Well, I don't have a wash sale. Well, then don't do it. Corey, you've taken this off the screen, right? You can take my screen up. So now, so One thing that money mom said, that's important. If your IRA has an LLC with an institutional account and you want to move to a metamask wallet, and that better not be your wallet. I want it to be a wallet tied to your IRA llc, because it's got to be another institutional wallet. So don't make any rash decisions, people. Moving money from an institutional wallet owned by your IRA to your own metamask, your own wallet, you can have a prohibited transaction. So be careful with that. Corey, you're choosing my questions. Okay? Melissa May says, can I include any taxes or fees on a crypto buy or sell in the loss? Yes, you're well. Ooh, that'd be a expense on the sale, I think. So I'm going to call it out real quick. Hey, Corey. Max, I'm going to dial Adele, will you ask him that question? Incoming. Okay, ask Liddell on that. On the fees of a transaction to sell crypto. Is that schedule A doesn't have. Does that. Is that deductible? Where would the deduction be for the transaction cost of selling my crypto? Is it? All right, I'm going to move to another question here. Okay? Brett says I'm in Oregon, business partner in Texas. Okay, everybody take a breath. We're going to. We're going to get off of crypto for just a moment. Let's get a little refresh, all right? It's okay. We don't have to be all crypto today. Okay? Okay, so we just called Liddell Air, senior partner at Kohler and Air. Our CPA firm said that you will be deducting any transaction costs in the sale of your crypto in a wash sale, and they are deductible on schedule D. D as in David. So investment expenses used to be deductible on schedule A. Schedule A got hammered in the tax Cuts and jobs act with some other benefits, but that's why I wanted to confirm that. So your transaction costs are deductible in your wash sale transaction, everybody. So don't worry about that, okay? Corey, can you take me up to the whiteboard? Okay, now, everybody and Christian will come back to altcoins. I want to get Christian's question there in a second, okay? So I hit that. Then I go like this. Oh, look at this. I'm getting more techy. I'm getting more tech savvy. Okay? I'm seeing some shout outs for my poor grandson that's, you know, going under the knife today with his circumcision. And, you know, we're all rooting for him. We hope he pulls through. Okay, now, Brett says, I, I'm in Oregon, Business partner is in Texas. Should I still do an LLC with 2s corps when we hit 40k, even though there's no income tax in Texas? We are just getting started with an LLC in Texas. Reading your book now. Okay, so everybody, we're going to go to our trifecta, and Brett says that he's in Oregon, his partner's in Texas, and they're doing business in Texas. Okay, so they have an LLC in Texas. And the way he implies it here, it's not real estate long term hold. They're doing an operational business now. Okay, Operational. Max here, one of my. My law clerk here, just love him. He's helping out here on the line. So everybody, let's say they own a restaurant. Maybe they're doing real estate development. Maybe they're doing something in the metaverse, maybe they're doing crypto mining. Could be any of that. And they're in Texas making money. Okay? Now one partner is down in Oregon. The other partner is in Texas. Now, Brett asks a very deceptive question. He goes, well, do we really need S Corps? Because Texas doesn't have income tax, so my partner down here has no state income tax. Now, they're going to pay fed, but over here in Oregon, I'm going to pay state plus fed. Okay, now everybody, Brett. Okay, I want to see Brett's comment. Max, let's see if. Let's see if Brett can do this. You ready, Brett? Brett, if you get this right and you can't look at anybody answers, I'm going to send you a book. Let's see if Brett can do this. I'm going to send him the tax and legal playbook. Brett, what tax does an S corporation help minimize? What tax do I want to save on with an S corp? Okay, Brett, what is it? Brett, what tax do I want to save on with my S corp? Come on, let's see if you get it. You get one shot. You got to hurry an answer. Do, do, do, do, do, do, do, do, do, do do not look at the crap out there that is trying to get you to do anything with coins that's related to Mark Kohler. Those are all scams. Unbelievable. Got the answer, Brett. Okay, Brett says self employment tax, you get. Oh, you already have my book. All right, well, I would have sent it to you anyway. Okay, Brett says, now everybody look it. They're running a restaurant, they're doing a development, they're doing plumbing, they're doing an electrician. They're doctors or a dentist. They're doing an operational business. Why do they do S corps? Because they're individual partners in an LLC and they want to save on self employment tax. So I'm going to help Brett answer his question. Does it matter if either one of them is in Texas? No. Why am I doing an S corp? It's not to save on state tax. It's to save on fricking self employment tax. What? The fica? Brett? Come on. What the fica? You should know that. So now I'm just teasing. So you're going to want your buddy in Texas to have an S corporation to save on fica? State tax doesn't matter on that issue. Okay, Christian says. What about altcoins? Christian, I need you to clarify that question. What do you mean by altcoins? If you have. I'll say this on the wash sale. If you have an altcoin and you've got a loss and you believe in that altcoin, sell it, rebuy it. I didn't give any financial advice. I gave you tax advice. Capture that loss, dude. So I don't care if it's an altcoin or a mainstream coin or whatever. I was going to try to make a joke and missed it. Sell, rebuy. Sell, rebuy. There's no financial advice there. That's freaking awesome tax advice. Take the loss and it carries forward to next year. If you don't use it this year, you can use it next year. That loss will carry forward. You're good. Okay. Okay. Spec says should we hold all. Okay. We should all hold our own keys just in case these custodians go bankrupt. Now Spec. I'm going to just let Spec share his opinion that he thinks these custodians or exchanges are going to go bankrupt. You should hold your own keys. Cold storage and defy type wallets have their own pros and cons. I'm going to throw this out to everybody. We did a whole. And Spec, this is important. We did a whole day on legal tax planning for crypto on asset protection. We did cold storage, hot storage, regular storage, blue storage, green storage. We did it all. I want you to go to crypto legal summit.com cryptolegalsummit.com and Max, will you be double checking on that? I've got to make sure that Brooke has that live for. We're selling the recordings of that entire day for 99 bucks. And we have a whole section on cold storage, asset protection and hacker protection. So go check that out. P. Clinet says, who is Max Thomas? I don't know. Is it? Are you Max? What's your handle on there, Max? He's Max Merritt now. Max Merritt is my incredible law clerk, law school graduate, sitting for the bar. He's amazing. Max Merritt is here. Are you two T's? You're two T's, right? Yeah. Two hours. Two T's. So Max Merritt sitting over here answering some questions. When is your accounting firm taking more clients, Dr. T? If you want to know, call Jerry. Call Jerry at my accounting Firm's Law Office. 435-586-9366. Talk to Jerry and say, jerry, I want to be on your wait list. If you're really, really friendly, you might be getting in. We have taken a few new clients this last month off our wait list. Bring up, brought them in. So Dr. T says, not a crypto question. Can you be gifted a house and just have the new deed under your name? Sure. Everybody, if you want Grandma to gift her house to you, she has to pay what's called gift tax. If she doesn't file a 706. No, I mean a 7 9. Oh, my gosh. Yeah, it's a 706. Max, look that up. The 706 gift tax return. I think it's a 706. If anybody wants to gift someone in there. Corey, where's your calendar at? I ran out of the office to come over to the studio and forgot my calendar, too. The gift tax rules this year. And I want to always double check our rules. Thanks, Corey. I love it. Corey carrying around his Mark J. Kohler calendar. We're going to be giving these away at the crypto tax summit. We have the last of them. If you want to pick one up, go to markjkoler.com. the annual gift tax exclusion this year is 16,000. So, Dr. T, if Grandma wants to give you her house, okay, so Grandma's going to give you her house. So grandma and your favorite grandson, and she's going to give your house. And let's say that the house is worth 200 grand, she can gift it to you, but she's going to pay gift tax on everything over $16,000. So she would pay tax on $184,000. That's the taxable gift. And then there's a tax rate on that. Now, a person has what's called a lifetime gifting exemption, but you have to file a tax return to get that. There's. Is it 706? 709. Gosh, that's right. 706. You know how I remember this? Now, 706 means your head is in the ground and you're dead. 709 means your head's above ground and you're alive. That's how I tried to remember it on the CPA exam. All right, so 706 is once you're dead. 709 is the gift tax return. So, Dr. T, grandma doesn't pay tax if she files this gift tax return, cashes in on some of her credit. But there's a lifetime credit. That is the exclusion that you can use up if you're not careful. So you want to watch that. Okay, Patrick says I'm getting killed this year. How much can I deduct in losses? Well, everybody, you can deduct. All right, let's do our trifecta. Let's go through this. So here's your 1040 tax return. Here's your revocable living trust. And let's say you have three things going on. You have stock, you have real estate, and you have crypto. All right? Now, let's just do a few little examples. Let's say your real estate, your Airbnb is killing it, and it has 20,000 of gain, all right? Or income. Your stocks, they're sucking wind. And you have $10,000 in losses with your stocks. And then with this drop, maybe some of you in crypto, we'd say, have a $40,000 loss. In crypto, you do your wash sale and you cash in. Now, in order to take. Now, let's say you sold your stocks, you. You get the loss. But if you rebought the same stock, you don't get the loss. See, that's wash sales you can't do with stock. But let's say Those are legit. 10,000 in losses, 20,000 in gain on real estate, and then you have $40,000 in crypto losses, whether they were a wash sale or not, meaning you sold it and rebought it. That's okay. So we have to net all this. So you have $50,000 in losses and $20,000 in gain. That means you have a net loss of $30,000. All right? So what you're doing, everybody is you're taking your capital gains and netting them against your capital losses. Now, if you had real estate losses, there's a different rule for real estate losses. It's in the book. But in this situation, it's capital gains versus capital losses. You have a capital loss. Now, what I can't Remember his name, scroll past it. But if you have a W2 over here, 50 grand. So let's say you have income over here. You're like, well, how much of these losses after I net my. So I netted my real estate. I net everything under the umbrella. I have $30,000 in losses. They, you can, they go into a bucket. And you can deduct $3,000 of this bucket every year against other regular, ordinary income. So you get a $3,000 write off. So now you're only taxed on $47,000 of your W2. Patrick. Thank you, Corey. So, Patrick, I should write his names up here so I can keep him remembered. Thanks, Corey. So you get to deduct $3,000. So what happens to your bucket? It goes down by three. So now your bucket is $27,000. Well, when do I get a deduct them? Well, next year. So now let's say crypto goes up next year, stocks go up next year, you've got a $27,000 loss. You can cash it all in on this side, but if you have a continued loss, you can only write off 3,000 a year against one regular income. There's a limit. You can only do three grand a year against your regular income, but you can deduct it all against other capital gain. Okay, I'm just jumping around here and I want to say this to everybody. Thank you so much for watching today. And I want to, I try, I'm going to be blunt. I try to make big deposits with you guys, my followers, and I appreciate it. I study so hard. I try to present free, whether it's a podcast or a YouTube video here and there or a live every other week or every week. We're putting this event on next week down in Miami. Any of that live in the area want to come down. We got a live band, we got amazing speakers, networking lunches and all that. But it's also going to be a virtual event. And some of you may be saying, mark, my crypto's down. I don't care. Well, guess what? As we talked about at the very beginning, we are going to see a comeback. It always has. I suspect it will. I'm confident I'm in for the long haul. I'm hoddle. Hold on for dear life. It's all right. Learn the strategies. Take a tax write off coming down or getting on the virtual event. Please get involved. We're giving away $100 of crypto every hour on the virtual event. It's going to be a lot of Fun. Two days. It's recorded. So it's a very. It's extremely affordable yet. Over to cryptotaxsummit.com and we would love to see you online. So, crypto Tax Summit. We've been preparing for it for two months. It's a big deal. It sucks that crypto's down right now, but the education is going to save you as the value goes back up. It's a tax deductible business expense for all of you that have small businesses. We're going to be talking about roths, Charitable Remainder Trusts, Wash Sales, Trading, Mining, Staking, Asset Protection, Cold Storage, Defi. We got Metaverse Panel, NFT panels. We're going to be hitting NFTs, the whole thing. So check it out. Okay, now we. Did we get our discount code? Did Jack get it to us? Okay, everybody, where's my phone? Where'd my phone go? Okay, throw it in. Okay, let me see if I've got my. We did a discount code that was really creative. I think you're all going to love it. Oh, I love it. Okay, year to date, I did this. This was my idea. I'm kind of proud of it, everybody. And then I'll get back to Q and A. This crypto, or bitcoin from year to date from the same day last year is down 38%. Okay, that's right. We've saw it. We saw our runs. There's been huge. 13x runs, 3.2x 4x runs. It's okay, hang on for the long haul, but we're down 38% year to date on bitcoin. And so I said to Jack, let's do a 38% discount for just two days. So from now until the weekend, a 38% discount on the event. So if you want to come in person or through the virtual, and the virtual is only 300 bucks. 299, you get 38% off. Now, the code. Jack just texted to me. You're going to love this code. Maybe not. We got to have fun. We got to have fun. Market Crash 38. So if you put in Market Crash 38@CryptoTaxSummit.com, you get a 38% discount whether you come in person. We got VIP tickets, reserve seating, open bar, reception. The live band is for everybody on Friday night. It's going to rock. So market crash 38 gets you a 38% discount. Okay, William. Boy, do I want to cover trader tax status right now. I am going to. Everybody, I'm going to make a commitment to talk about Trader Tax status on our podcast next week. So Max, will you remind me to do that too have Whitney and Corey on that. Trader Tax status is a big discussion and I think we should hit it on our podcast next week. Let's do that, William. Please stay in touch. Ryan says can I open a Roth? Oh Corey, I'll come back to crypto one. I just saw the one below. Ryan says can I open a roth for my 1 year old and invest in crypto stocks and gold all in one Roth? Yes, yes, yes and yes. But I've got maybe some better ways to do it. So what was his name? Corey, go down Ryan. Ryan Riggy. Okay, so he's. Let's go back to our trifecta. Ryan's got a one year old child. So the one year old child is going to invest in a Roth ira. Now option one is, well let's back up. One year old has to have earned income to open a Roth ira. So we need to create. You have hopefully or it's not going to happen. You have to have a small business and then we have to find a legitimate reason to pay your one year old at that age. Typically what we're seeing is a business that can support legitimately a reasonable modeling fee. Maybe you've got pictures of your child on your website for your product, for your events, something like that. Let's just assume so you can pay your one year old $1,000, something reasonable. Maybe it's 500 to $1,000 with a professional photographer. Can't be your cell phone, this is IRS ruling. So you can pay him $1,000. Now your one year old can open a Roth IRA. This is legit. This is in my book. It's nothing crazy. If your account hasn't talked about it. You, you need your accountant, a copy of the book. So a small business, it's a write off for $1,000 and you're going to pay your one year old for helping in the business and they can open a Roth. Now option one here is you can open the Roth and the Roth can open an LLC and go buy gold and crypto and invest in small business. Okay, that's what option one, option two is. Now this is the more efficient way to do it is you use option two and three in combination. And so I'm going to. Let's make this a little easier to see. So let's say you've got a Roth with a little kiddo here. My kids all have Roths. Kid Roth, Kid Rock. Okay, so all my kids have a Roth, we already did. Option one means an llc. More work, but more options. A little more cost, but more options. The best I like is this strategy that combines option two and three. And what you do is you with the Roth, you actually open up a crypto Roth. We have A crypto Roth IRA product is through gemini@directed ira.com and you can open up a, a Roth for your kid tonight online while crypto prices are down. Take $1,000, let's go buy it. So a crypto Roth and you, what you do is you don't open a regular Roth. You open a crypto Roth and you put maybe you put $500 in that one. So you put $500 in this one and you go buy some crypto. Okay. Then you open a second Roth for the other $500. And this one you might just do. At TD Ameritrade, we do have trading Roth accounts at directed ira, but we're not built for that like TD Ameritrade or Scottrade or whatever. So just go open a normal online brokerage account, app account, and with that one, put in your other 500 and then go buy stocks there. So your kid can have two Roth IRAs. All of you can do this. You can have two Roth IRAs. One that's dedicated to crypto and one that's dedicated to maybe stocks. This one you would be through self directed ira.com but some of you are like, well, I don't like what Gemini has to offer. I want to buy altcoins. Then you have to open a regular Roth, like I was just saying. And we don't call it a traditional. I don't want to confuse anyone. So it's kind of a regular Roth is what we call it. And then you will open an llc. Then you have all this flexibility out there to go buy altcoins. Okay, Corey, you wanted me to do crypto one. Can I start a trust and an LLC if I haven't started a business but plan to thinking about real estate? Thanks Crypto1 for that question. Everybody listen, this is good. We'll do two or three more questions. And Corey, I want to give away a couple books. Will you find some names? So see if you can find a male and female, let's be, you know, something there. And let's give away two tax and legal playbooks. And should we give away. Come up with Matt's books since we're talking Roth IRAs. I'm going to give away Matt's book since it's on him. This is a self Directed IRA handbook. I'll give away two of these and two tax and legal playbooks. So Cory's going to draw some names randomly here. So you got to stay on, got to stay on for the end of the show. And I'll do two more questions. So crypto one says, can I start a trust and an LLC if I haven't started a business, but I plan to, the answer is yes and no. So everybody, we go to our trifecta, go to YouTube and type Kohler Trifecta. You'll freaking love these videos. But what you're going to do, all of you, young or old, rich or poor, children or no children, married or single, I want you to have a revocable living trust. That's so the answer is there. Crypto1, yes, you need a trust. Okay? So you get the trust finished, it's going to last the rest of your life. Adding a business is separate from that. See, the trust is going to own your home. It's going to be the receiver, the beneficiary of your life insurance, your IRAs, your Roths, DA da da da. It all goes into your trust. Owning a business is a separate decision. And this is where we put short term business over here, long term business over here. Long term business is like a rental property. And crypto one says he wants to buy some real estate. So this is where you would create an LLC owned by your trust and the LLC would own the real estate. Don't go online and try to knock this out and hope you get it right. Do it right with a lawyer the first time. Charge 800 bucks. Get an hour with a real tax lawyer around the country helping you do it right. Tax deduction. So the question he said is, should I open it when I haven't really started my business yet? The answer is no. Don't go set up the LLC until we know are you really going to close on this real estate deal, get it under contract, be headed to closing. I don't know if it's going to be in Georgia or it's going to be in Washington state or New Jersey or California. You set up the LLC where the rental property is. Don't listen to this bull crap out there that you can set up your LLC in Nevada, Delaware or Florida or Wyoming and not have to set it up in California. When the rentals in California, you set up your frickin LLC where the rental is. But I want you to not hold off on the LLC until you're ready to close. That's very important. Now you Got some of you out there, like, what about lenders? They've got to close in your own name. Yes. Then you're going to deed it over to the LLC. In 20 years, I've never had a bank call the note due with the due on sale clause because they deed it to their llc. It'll be okay. This is why you call a lawyer and don't go read Reddit or on some chat room to get your legal answers. I will save you money. We will make you money. Pay for good advice. It'll pay tenfold down the road. Do not set up an llc. Set up in the right state and do it right the first time. Okay, I'm going to. I want to give one other tip that I think is really important and then we'll go over to my last question. Cory, you get to choose the last question too. All right, so on Reddit today, I, when I said the word Reddit, it reminded me of this. This chat got thread got going on Reddit where it was like, you don't have to pay tax on your crypto, just put it in a defi wallet. Or I live in California, but my wallet is over in, you know, Russia. Or my wallet is, you know, somewhere in the metaverse. No, the IRS has programs, software and tasks force task forces that are going out and will be prosecuting and already are. For those that are trying to not pay tax on their crypto, I don't care if it's in a metamask phantom wallet, you will pay tax. It's called the blockchain for a reason. For those of you out there like, I love the blockchain. It's transparent. You don't think the IRS knows that? People, do not listen to some bozo on any chat app, forum room, whatever that says crypto is not taxable. Say, really? I will pay you $500 to sign my tax return. And if you're wrong, you'll pay the price with the irs. Bing. They'll disappear. People, this is what we're covering at the crypto tax summit next week is how to do your taxes for last year. Some of you have major gains for last year and you extended. What do you do? You're coming to the tax summit to pay your. To figure out how to do your taxes for last year and for the next run. Okay, Corey, my last question. And then we're going to give away four books. Chuck Jr. I hope this is a good one. Are there rules to how long term, short term capital losses offshore offset, long term, short term Gains. Yes, Chuck, there are rules. They're a little tricky. There's called 1241 property, 1250 property. Thank you, Corey, for choosing a hard one. Holy hell. Okay, also, if you have real estate losses, they're treated differently. If you have stock losses, they're treated differently than real estate losses. So short term and long term capital gains all have different rules. I have slides on this and you know, I hate. I'm not trying to be too salesy here. I'm really not. We have a slide at the crypto tax summit that goes through all these rules. If we spend 45 minutes going through short term and long term capital gain stacking. What? How tax rates play into it. Chuck, please, just get the virtual event. You got a 38% discount code. Use it. It's recorded. If you don't catch the whole event and watch the section on long term, short term capital gains. Holy hell. For 150 bucks ish$200, you're going to get all the advice you need with real lawyers, real accountants standing behind it. Okay, Corey, who are my winners? All right, we got terra firma. Terra firma. Now by the way, if any of you are winners, you have to email Corey and then he's got your names and he's got your info. So this is coreyarkjkohler.com. any of you scammers out there that email Corey, go. I'm Tara. He knows how to track you down. He. He's got your contact info here, but he needs your mailing address so we can mail you the book. So Tara is the winner of a self directed IRA handbook. Terra firma. Okay, who's my next winner? Oh, good, Max gets to pick him. Yes. It's my backyard science. My backyard science. My backyard science. You are the winner of a tax and legal playbook. My backyard science, tax and legal playbook. Okay. And then another self directed IRA handbook. Who's the winner of that one? Patricia Dixon. Patricia Dixon. Patricia Dixon, you are the winner. See, even with the market crash, you're a winner. Isn't that powerful? It's okay, Hodl. Hang on there. Hang in there. And then one last winner. Tax and legal playbook. Max, who's our winner? I like. We pick Dr. T. No. Dr. T. Dr. T. And that's capital T. Little E. Little E. Dr. T. You are the winner of the tax and legal playbook. If some of you say, mark, I already got your book, you're the winner, sign it and give it away to someone I will be signing these books to making sure that you have a copy and use it as a gift. Give it to your favorite person. People. Increase your field of vision. Take action. Keep moving. Look forward. Don't let your thoughts hold you back. You can do this. Think long term. The market will rebound. It always has. I can say that because in 1920, the market crashed. It came back. You'll be okay. Bitcoin has been down many, many times before. Other coins, I don't know every coin. Do your research, but keep a long term perspective where possible. And you, you know, should be okay. But don't make any rash decisions. I wish you the best. See you next week in Miami. There will be no live event this week. I will be live in Miami. So see you then. And keep living the dream. Don't give up.