Financial Freedom - Strategies For Logan Paul, and Meme Stocks & Crypto Investors | Mark J Kohler |

Welcome everybody to this week's live broadcast where we talk about the American dream. Saving taxes, building wealth, protecting it, hiding it, saving it, all the above. Because making money is fun, saving it is even better. And spending it, that's the best. So, but we got to have a plan. We got to have a plan to do it right or we'll get the IRS all over us. And if we're disorganized, we're going to make less. I was just talking to my crew right before this. We went to the Demolition derby this weekend and there was a business owner there. I just was like, come on, seriously, you don't even have a webpage. You don't have this, you don't have that. I'm like, how can you functionally have a business now of course it was a white trash event, Demolition derby. I did, I'm not kidding guys, did you see that? I saw a girl wearing camouflage cowboy boots, Daisy Dukes and she had a full on sidearm gun on the, on the side of her Daisy Dukes and a tank top. I was like, where am I? And I didn't see a mask on anyone. So it was like, it was like Lord of the Flies. I mean it was like zombie apocalypse. I'm not kidding. I saw, anyway, going to the fairgrounds, always a fun time in the summer, you know. Anyway, it was a fun weekend but I just see so many business owners that are disorganized and I want to help them make more money and do it right. So that's what we're going to talk about today. I want to do a little introduction here. Logan Paul fought this week. I watched the fight with a bunch of guys, we did the pay per view thing, kind of fun. I was glad he made the eight rounds with Mayweather. That was, that was a feat in and of itself. Some of you that follow me, I do get in the boxing ring once in a while. I'm a hack, just an old guy trying to get in shape, but that's hard. Eight three minute rounds, you are wasted. I'm dead after two rounds. But he made, what is it, 100 million? Oh, 20ish. It was a 20 million purse. Mayweather got the bulk of it probably right or whatever. That's what Logan made. Logan made 20, estimated 20 million. Okay, now here's my point. Today I'm not going to make 20 million, certainly not in eight rounds of fighting. But are you making 10,000? Are you making 100,000? Did you buy some crypto stock or cryptocurrency sensei stock Cryptocurrency last year or five years ago, and now it's worth a million dollars. When you start making money, that's when my phone starts ringing. And I want to give you some ideas and some plans before you get there so that you can be more organized all the way along. So I thought I'd throw out a few ideas or strategies here, then it's Q and A. I'm all here for you guys. And I hope I can share some insightful thoughts on building wealth and saving it, protecting it, tax write offs, all the above. The more you have in your pocket to do what you love doing. Driving in a demolition derby and wearing camouflage cowboy boots and Daisy Dukes. Okay, now let's just say right now estimates are 40% of working Americans. 40% have. That's one out of three, easy or more have a side hustle. They're driving for Uber. They've got a little Etsy business. They're doing some consulting, doing some landscaping, cleaning a building at night, whatever. Fighting in a fight on Showtime. You might be selling on YouTube. You might be a YouTube personality. A meme. What does it call it, guys? A meme. Meme stock. You're making money with memes, isn't it? Meme. Yeah, nevermind. That's another joke for another day. Okay, so let's say you're in one of these categories. You've brought in 10,000 last year, or you might do it this year. Just a side little hustle, column two, you might be bringing in 100 grand. Cool. Maybe eight grand a month in sales and some little project you're doing. MLM consulting real estate, who knows what? Or you might be bringing in a million dollars. Or you could be Logan Paul and bringing in $20 million. You know what's interesting? In all of these situations, and I meet with clients in these areas all the time, in our office we have 10 attorneys. We're meeting with clients on every one of these. Now, of course, the bulk of our clients are probably right in here, making between 100,000 and 3 to 400,000 a year. We want all of our clients making six figures. And this is gross. This is your gross sales, whatever you're doing, okay? Now if you're in this sweet spot here, we'll put a little target here, somewhere between a hundred grand and a million. Guess what? It's the same principles. So everybody, hear me out, hear me out. This is really important. Wherever you're at on this chart of earned income from doing a little something on the web, selling a product, a Service consulting, mlm, whatever. Your first objective is to take as many tax write offs you can. So I want to be in here, in this area right here doing as many tax write offs as I can. This is step one. I've got another step for you here in a moment that you're going to love. But right here step one is all about your tax write offs. Handwriting is a little ugly here. Now what are those write offs? I'm going to just rattle off my top 10 just for fun here. We'll just, just kind of see how it goes here and kind of write offs. Alright, so what are my top 10, top 10 write offs? And I'm going to try to do them in the order of most importance. The number one write off is more of a strategy and number one is that you've got to save on self employment tax and only pay what you have to. Now this is where you use an S corporation. I've got lots of videos on that. Okay, Number two, probably the next one that I see most clients take for write offs. I'm going to go with auto. I think auto is a really underutilized write off because all of you are going to drive to Staples, the Apple Store, go to a conference, a meeting, whatever. I want to take a write off for auto. Number three, I'm going to go with electronics supplies, equipment, tools, anything you're buying at Home Depot. I could just look around here, a computer, my phone case, pens, pencils, yellow pads. I've got just chargers. I mean I've got little things around me that everywhere I go I'm going to find a business purpose for. It could be a drone, who knows what. But see that's what you're doing here. Don't think you got to be LOGAN Paul making 20 million, you could be making $10,000. And I want to take all these same write offs. So auto, electronics, tools, supplies, etc. I'm going to put number four, dining and food. Now this year we get to write off 100% of our dining. When we do go to a restaurant to do business and talk with a vendor, a customer, a partner, Whoever, or takeout. 100% write off. They're trying to rebuild the restaurant industry. This is huge. And President Biden, he's not touching it, he's like this is good, let's leave this alone. Everybody would hate him if he took that write off away. So dining is a hundred percent write off this year. That's a big deal. Every time I go out to eat I'm trying to Talk business. Number five, I'm going to throw in travel now. Travel is not auto. Are you going anywhere this summer? Are you going to go check on a rental? Go meet with your board of advisors, have your annual board meeting for your LLC or corporation. This is why doing minutes and having a little corporate book is important. It's just not 50 bucks on the state website or legal zoom. You got to have pieces of parts. We have a little company maintenance program, cmp. Make sure you're using it. My girls will give you a questionnaire to take out to your meeting. You're out with your best buds and girlfriends and whatever and you're like having a board meeting for the summer. Go to a conference, talk business, meet a vendor, meet a customer. Alright, that's travel, airfare, uber taxi, hotels, all of that is 100% write off when you're going for business. I'm going to put 100% again. Even meals by yourself or a write off when you're traveling. Number six, probably the next biggest one I see on a tax return is I'm going to put equipment and furniture kind of bigger things. It's not the electronics, the supplies and gadgets and tools and kind of what you'd get at Office Max or Staples. This is equipment. You might be buying certain type of machinery for your business. I have clients that buy four wheelers to push snow around their rental properties. You might have a certain, you might need furniture in your office or home office. So I'm going to put equipment and furniture and these are kind of big ticket items and I want to write those off individually with what's called bonus depreciation. I want to write them off all in one shot. Number seven, we got to get it on the board. I want all of you doing the home office. Now if I was meeting with Logan, Paul or any of you YouTube or mean personalities, this is what I'm doing. Whether you're making a 10 grand, 100 grand, a million or 220 million, I'm looking for all your write offs. That's number one. I'll give you number two here in a moment. But number one is just taking all these little things. All these little things add up. Want you have a business bank account, dedicate one of your debit cards or credit cards to business track, all this crap. Number eight, paying family. For those of you that are single with no kids, it doesn't mean you might, you might have your mom or dad on your board of advisors, your board of directors, your best friend, anybody you're helping out financially, I want them getting a 1099. They'll love it. At Christmas time, send them a Christmas card with a little 1099 in it, you get a write off. They can pay their own damn taxes. So if you're helping out anybody financially, let's take a write off for it. And I love it when I've got families with young kids under age 18, they're all working in the business. This is the family farm in Oklahoma, the deli in New York City, the rental property in San Diego, whatever it is, get your family involved in helping you in your business. So I'm going to put paying kids, parents, spouse, whatever. I want to take write offs and shift taxable income around. One of the first things I'd meet with with Logan Paul, as I say, hey, married, single. Is he married? I don't know. Married, single, he was single. Ooh, we got to get married before year end. That could be a sweet write off. Okay, that's another one. Okay. Paying kids, parents, spouse number nine, I'm gonna say funding a retirement account, which is going to lead us to strategy number two. But I want you to, in your small business, kick the money down the road tax free, try to build, build a solo 401k. There's so many options you have at your fingertips. This is how the rich get richer. Small business owners have more options than anyone else. Solo 401K, a Roth IRA, a Roth 401K, an HSA Health Savings Account. Man, I've got two more and I'm going to have to break my top 10. I'm going to do health care. Health care is a sweet write off when you're a small business owner. Because the average W2 wage earner can't write off health care. You get to write off your insurance over the counter drugs, not over the counter drugs, sorry, prescription drugs, all sorts of surgeries, drug rehab, you know, that could be important for some of the people in this room. You know, I want to sign them up for rehab. Get a write off, it's all good. Okay? And then I'm going to take number 11. It's, this is a write off and this is a spin off. These, these number nine and number 11 are going to be strategy two. So hang tight. Buying rental property. When you buy rental property with the profits from your business now, you're creating another source of income and a freaking awesome write off. It's like with your retirement accounts, you're getting a write off in building another pool of wealth. So buy real estate rentals. Now some of you are like Mark, I don't want to be have rental properties and plunge toilets and stupid. So it could be storage units, it could be commercial property, it could be warehouses, industrial property, fourplexes, duplexes, apartment buildings, whatever. But buying in real estate is going to create tax deductions and oftentimes tax deferred or even tax free wealth. Okay, now number one is all these folks, you know, Logan, Paul's over here. All of you making money on YouTube and Etsy and online or whatever, we're going to be in somewhere in here. And that's me too. We're in this round, but we got number one, we've got to take all of our little write offs. Now let me make one one more point and then I'll just do Q and A for you guys. The next point is number two strategy is I want to take my retirement account and build another bucket of wealth and my real estate and build another bucket of wealth. These two buckets, real estate and retirement accounts can be tax deferred or tax free and tax deferred or tax free. And this is how again my clients get build more wealth. And it brings us to the trifecta, the magical structure for successful business owners. Because when I get your trifecta going, your foundation is your personal trust for privacy. I can hide you, hide your assets, all that, protect it for the future, away from crappy family members or lawyers or the government. And then I'm going to split your life into two sides. Your W2 might be over here. You might have a little small business. And this small business could be an llc, it could be a sole proprietor, it could be an S corp, but this is your left side of the trifecta right here. Down here's your trust. Then over here are our investments. And this is where these two other buckets come into play. I want to build this bucket of retirement accounts, Roth money, IRA money, and I want to build your rental property with an llc. And so these two structures, see you might have a day job at a small business, multiple retirement accounts, multiple rentals, all flowing down into your personal 1040 and secret trust, your privacy trust. So all this is the trifecta. I've got this one side, right side, boom, three legged stool. This is my, this is how I structure my life. When I meet with clients, we just build a diagram, color, little bubble charts. And what do you have? Your home might be over here, that's your primary residence. But up here are your investments. And this is really what I'm Trying to do is build this wealth over here and over here. I'm going to put it in blue. This is generating the income. This is the income side. And I want to take all the write offs I can. Boom, boom, boom, boom, boom. My top 10, top 20, top 15. I want to take all these write offs live on just the bare minimum of what I need to live on and then bamboo throw it over here and build my tax deferred, tax free wealth in real estate and retirement accounts. That's it. Hopefully that's helpful. That's what I do every day and a lot of people find it refreshing and helpful to kind of get organized. So I'm going to start taking questions and I'm going to go over here to my Instagram, see what questions we have. And I want to ask you too put a lot of work into this. I was preparing this afternoon thinking of what I was going to do and how we were going to go through this. And I want to ask you, please subscribe. Whether you're on YouTube or Instagram or Facebook, please give me a like subscribe. And I want to just help wow you with free content all the time. I may ask for a little deposit from you once in a while but I'm going to be giving deposits to your business and your wealth all the time. So give me a subscribe if you wouldn't mind. Okay, Jack, I'm not seeing Instagram pop up with my story. If you could work on that, I'm going to start answering some questions. All right, Adam Ulrich, can you help a brother with some. That's not what he said. I don't, you know, I'm just throwing down here. Adam says, can you help a brother with some info on setting up my family management company. Okay, now everybody in your trifecta, I'm just going to use what I wrote up here. Thanks, Jack. Here's your income side. Here's your investment side. Now this is important to everybody. Adam, this is for you. The only. There's only 2 times 2 instances you're going to need what I call family management company. We actually kind of hate that term more and more because people think they're just doing family stuff. They're not. It's really a business that's supporting your other businesses. It goes right here, this family management company. In fact, I'm going to erase a little bit here. Let's do it right here, this little family management company. Everybody hang tight. This is really important. What Adam's asking about the two reasons I set up this Little FMC Family Management Company. It's a little sole proprietorship. It's got its own little bank account. It's a schedule c on your 1040. It's just a little schedule. It's a little small business like you were selling crap on ebay. Alright, but what does this do? It supports your bigger business, it supports your rental property business. It's only two purposes and I'll put it in red is one, hiring kids or hiring your spouse to write off medical, that's it. If you're not married and don't have kids and we're not going to need it, that's really it. It's just a special entity where I can write off expenses paying kids and spouse with no FICA, no F word FICA. I hate FICA. FICA is that Social Security and Medicare 15% and so I'm going to push money over here and pay my kids so I don't have to give them a W2 up here. I don't want to do a W2 up here. I Don't want to do a W2 over here so I can run it through here, pay my kids, hire my spouse and do what's called an hra, a health care reimbursement arrangement. These are really the only two reasons I do it, Adam. You just go down to the bank, you set up a sole proprietorship under your name, your Social Security number. If you have to get a DBA doing business as go get a freaking dba. But you just set up this bank account and the only business that the family management company works for is yours. Just works here, works there. And this revenue is zeroed out. We bring in 10 grand, we spend 10 grand, we zero it out. So there's no FICA, no tax, we get sweet write offs, we pay our family. There we go. All right, I hope that helps, Adam. And you structured as a sole proprietorship and it's in my book. Oh, I'm going to give stuff away to two, aren't I? Okay, I'm giving away how many books today, Corey, you choose four books. I'm going to give away two financial freedoms and two what your CPAs are telling you. So these books help highlight a lot of these things we're talking about today. Okay, I'm going to go over to Instagram and then I'll come back. Ooh, man. Renee says I love the CRT video. Can I transfer an appreciated stock into a CRT from Robinhood? Wow. I think so. It's going to be tricky though because I Don't know the ins and outs. Robin Hood as much as possible. Let me explain this for everybody. There's a cool strategy called a charitable remainder trust. Charitable remainder trust. If you've got highly appreciated crypto stock, real estate, a business, and you're going to sell this business or this real estate or this stock, whatever it is, for a million dollars and you're going to pay tax out the wazoo, let's say 20. Some of you go, well, capital gain is only 20%. Yeah, but then you've got Obamacare at 3.8. And then you've got your state tax, which is going to range from 4 to 11% or even higher. So let's just say 7. You're at 30.8% at 7, 10% here. This, that. That's brutal. So you're going to spend 300 grand in taxes. A CRT is where you transfer the stock to a trust and let the trust sell it tax free. And then the entire million goes into your CRT where you can set up an annuity for yourself for the rest of your life. You get a tax. The CRT strategy is wonderful, but the problem is if your stock is sitting in Robinhood, you can't sell it in Robinhood. You've got to transfer the stock without selling it to the crt. And I'm sure there's a way to do it, but you're going to have to probably get in touch with Robinhood to make it happen. When you set up your crt, you're going to get an electronic identification number, an ein, and a bank account. And I don't know if institutions can set up a Robinhood account, but that's what we'd want to do. We need to somehow transfer the stock to the CRT without selling it. So that's the, that's the strategy. And then you can do a CRT all day long. Okay, long term holder on YouTube says, saw your video on not paying crypto gains tax by using a crt. Oh, same topic with an annuity. You said you can get 8% on that. Is that a hard rate to get? No. Oh, here. Okay, everybody, let's stay with this example that's on the board. So let's say long term holder transfers their crypto into the crt. Now in this situation, you're going to have to have a wallet in your crt and you're going to have to do a wallet to wallet transfer. So you can't sell the asset before you throw it in the crt. You got it you got to transfer to the CRT and let the CRT sell it. Now, this isn't terribly expensive. We're trying to save hundreds of thousands of dollars. You're going to have multiple attorney meetings and account and brokerage meetings. We charge around five grand. You're going to be. It's one of our most expensive products because it's going to take a month or so to pull this off. And it's a lot of work, but it's not the end of the world. I want to save 300 grand. So anyway, here's your CRT. When you set it up, you donate a million dollars to the crt. What's going to happen to that million dollars? It's a charitable remainder trust. Whatever's remaining when you die goes to charity. That's the theory. Now, there's all sorts of charitable trusts you can do. Bill Gates and Warren Buffett did a variation on this. But the typical one is you're going to say, I'll put this million there, no tax, and when I die, you can give it to the school, give it to the charity, give it to the church, I don't care. But I get an annuity during my life, guaranteed. Well, when I donate, I get a tax deduction too because I just gave to charity. But we don't know what the future value, the fv, the future value of that charitable gift. We've got to bring it back to present value. Okay, I know this is deep, everybody, don't go anywhere. I'll answer some easy questions here in a minute. But here's the point, long term holder, the bigger your annuity, the less that's going to go to charity and the less you're going to get as a tax deduction. And in the IRS tables, if you weighed it so much that you get a guaranteed payment that's too high because they'll dip into principle to get that money to you. That's one of the provisions you can put in the trust. But if you give a big brokerage house a million dollars, you're going to get close to an 8% fixed return. But you're going to have to wait. You can't touch it. You can't, you know, move it. The IRS may say that's too much. We're going to say that the CRT is defective. So there's a bunch of tables that are based on your age, how long you want the money, how much you plan to give to charity. There's a lot of variables, long term holder. So don't worry about the 8% as much as. Is it too much to make the equation balance? And that's what you're paying for as an attorney and an accountant and a financial advisor to bring this together. So you pay zero tax and end up with a sweet kick ass payment. All right, I'm going to go back to Instagram then over to Ju Park. All right, that's Joo park. Okay. This is Dr. Jonathan, regular contributor here to the show. As an author, how do royalties work? Do I need an LLC with an S election? Yes. Yes you do. Now some of you may say, well Mark, I want to get passive income from selling in my multi level marketing program or I want to get residuals from selling insurance or I want to write a book and get royalties. If it's based on your labor, it's going to go into income and subject to self employment tax. So what would normally happen if you're an author and you write a book and you have a sole proprietorship, it's just you. Maybe you have a little LLC. LLCs don't save taxes. People, they don't save taxes. They're for organization and your trifecta. But if you have a little sole prop or, or LLC and 100 grand comes in and you spend 20 grand on expenses writing your book, you may think it's passive. You're like, well Mark, I'm getting royalties for the next 10 freaking years. Doesn't matter. It was based on your labor. Well Mark, I'm an insurance agent and I have residuals or it's an MLM and I'm getting paid for my downline. Doesn't matter. It's a 1099. You're going to have your income every year. You're going to have your expenses and then whatever's left. 15.3% in SE tax. Freaking on 80 grand, that's $12,000. Then you pay Fed and state. You're getting killed. This is brutal. The S corp, when you make that 80 grand, we take 40k as W2, pay our self employment tax. I'm good. Pay My F word FICA, I'm good. But the other 40, no FICA, no Obamacare. Now I still pay income tax but I just saved on 15.3% in this example. So I saved six grand. Six grand in savings as an author switching over to an S corp. So you just take your LLC and make an S election. It's really expensive. We charge 150 bucks. So simple, so easy. All right. Ooh, someone said, what was that? Elaine said, where can I Learn more about my crt. Charitable remainder trusts are so cool. I've got a great video on YouTube on this. Corey, can you put it in the chat somewhere? The link to the CRT video, You guys got to watch it. It's nine, eight, nine steps on how to build a CRT. It's like 20 or 30 minutes, so go through that. Okay, DSB gamers. So you guys good? Okay, DSB gamer says. Mark, can you give us some tips on avoiding short term capital gains? Oh man. Well, let's talk about what short term capital gains are, people. There's about four ways you make money. You make money tax free. You make ordinary income, you make passive income, or you make investment income. Man, I wish I would have wrote that cleaner. Does that look okay? Does it look okay, Cory? It's kind of ugly, right? Should I redo it? No. Okay, so this is ordinary. So we have tax free, ordinary passive investment. Okay, those are our four ways. When Logan Paul fought the other night, what did he make? He made ordinary income. If long term holder buys cryptocurrency, what is that? That's investment income. If I'm doing a 1031 with my real estate, that's passive. So this is a rental. This is crypto or stock. Ordinary is a 1099. This is your side gig, your side hustle. And tax free is your Roth IRA, your 401k making the money. Okay, so these are the four main ways you're going to make money. Now. Yes, you could win in the lottery, you might get inheritance, but working your butt off every day, it's going to be one of these four. Now which one or two do you get to take awesome write offs against ordinary. And what's the other one, people? I'm asking the studio audience, the live studio audience, Passive. So I can take write offs on my rental property because I got to go out and check on it. Do I get write offs when I buy cryptocurrency? No. Do I get write offs when I invest with my retirement account? No, but I don't pay tax either, so who cares, right? But here's the deal. When you invest with crypto stock or any of these strategies with stock crypto, you're going to have short term capital gain or long term capital gain. Long term capital gain is if you hold it more than 12 months. Short term capital gain is if you hold it less than 12 months. Rental property after the write offs and I go to sell, it is going to be either a sale of short term or long term or ordinary income. Now ordinary income is split into two types. It could be subject to self employment tax. Logan Paul, when he fought in the fight against Mayweather, he had to pay self employment tax on $20 million. Oh my gosh. We could run the numbers on that. Okay, but then if it's not ordinary income, I mean self employment income, then it's just ordinary. Now I know this may seem really complicated. Everybody just hang with me. DSB gamer says how can I get rid of short term capital gain or how can I minimize it? Well look it, if you've got ordinary tax rates here, everybody look at this. I've got ordinary tax rates here. I've got long term capital gain rates here. So these are the only two places I've got good rate. These are rates here, rates here. Short term capital gain is taxed at ordinary rates after self employment tax then I pay ordinary tax rates. So short term capital gains aren't great but they could be worse because we don't want self employment tax. So short term capital gains, the only way to really get around them is hold whatever you're doing 12 months. You could do a charitable remainder trust like we've been talking about. I sometimes do a backdoor strategy. Oh my gosh, I'm getting to some heavy duty stuff. But if I have passive income that short term capital gain I'll try to sometimes create a management fee and then create a 401k write off and create some tax deferred income. So short term capital gain is hard to get around. But just remember it could be worse. You don't want self employment tax and if you don't hold it 12 months, you're kind of screwed. You know you're going to have to pay ordinary income tax rates. You could again do a crt but you've also hopefully got some write offs so that we could maximize that. That's a hard one. DSB gamers get a consult with your accountant. Give us a call too. Let's see what exactly is going on in your life. Imagine Sky. I want it. This is really good. Imagine. By the way, love your pick. You're cool here. Imagine sky says this is so insane. I mean this is why most of us are poor our whole lives. This is not taught. And I'm so happy to learn. Imagine. You made my day. That's the best message I've heard all day. Guys, I know learning about taxes is kind of sucky learning about business and legal structures. But I want to make it as easy to understand so that you can freaking apply it. I'm sick of big banks. I hate Wall Street. I love Main Street. And everybody watching today, you've got a little side gig. You got a side gig. And whether. Look at this. Whether you're making 10 grand, 100 grand. Let's get our write offs right out of the gate. Get a separate bank account. Get your trifecta going so you're organized. Look at all these fun little write offs. Let's take advantage of all these. Then you set up the right structure and you're off to the races. You may only need an appointment with our law firm or accounting firm once or twice a year, but we want to save you 20 times. And don't go to our law firm, accounting firm. I don't care. We're busy anyway. We're grateful for that, but find someone that freaking understands this because you don't want to do your own tax return. I don't want to remodel my own kitchen. I'm going to hire someone that knows what the hell they're doing. I go to Home Depot, I'm going to jack it up. There's no doubt about it. Okay? Imagine. Thanks for that comment. All right, do you guys have a question? You tell me what to talk about. I don't know what to talk about. Give away books. Okay, I'm going to give away books. Cory, I need some winners. I'm going to do two winners now, and then at the very end, we'll do two more winners, okay? Okay. What media station are they on? Ryan, kj, we are giving you away the book. What? Your CPA isn't telling you. Should I sign this one? Okay, I'm gonna sign it right here. Ryan. Live the dream, baby. Live the dream. So this is to Ryan and R I A. R I A. Oh, damn it. I misspelled it. How can I give him a book? I'm going to fix it, Ryan. But at least we fixed it here on the air. Ryan. Without a Y. Okay, Ryan, there's a lot of pressure being on camera. Ryan, be patient with me, okay? Corey. What you do, Ryan, you got to email coreyarkjkohler.com and give him your contact info, and we'll mail this book off to you tomorrow. So here's Ryan. Okay, who's my other winner? Cory, who's my other winner? Let's go with Nick Garcia. Nick Garcia. You went with two guys. That means our next two winners are going to be. Ladies, you got to be politically correct here. You got to be fair. Damn it, Corey. Okay, so this is who? Nick Garcia. Okay. Nick, Nik, Nik, Nick. Don't give up. We all need to hear that every day. It's hard on. It's hard. Life is hard. It's hard for me. It's hard for everybody. Okay, Nick, don't give up. There we go. Jack, my marketing director is taking those. He'll mail them out, but you got to email Corey, Nick and ryan. Email Corey arkjkohar.com and give him your contact info. Okay? We'll give away a couple books here in a minute. Okay. Who am I talking to or about? Okay, I'm gonna go to Instagram. Oh, Brazilian Mom Adventures says, how do we donate the shares of a business to a nonprofit before we sell the business? Man, we're getting lots of CRT questions, aren't we? People love that stuff. All right, okay everybody, let's go back to our CRT diagram. Okay, here we are. Mom Adventures. Brazilian Mom Adventures says she's got a business. Let's say it's a flower shop. It's on Main Street, America. She's going to sell the flower shop, all of her inventory, the refrigerators, she's got a couple employees. She might be making 50 to 100 grand a year. She's going to sell the business for 300 grand, 400 grand, 500 grand, I don't know. So she's going to sell her business, she sets up the crt, which is a non profit. This is so easy. You've got it easy, Brazilian Mom. You just do what's called a stock transfer agreement, a membership transfer agreement. Hell, we do it for free. Include it with the crt. It's really a two to three page agreement. You're just going to transfer the stock to the CRT and then the CRT is going to enter into the sale with the third party. That's the contract that matters, the competition agreement. How are they going to pay you? Are you carrying the paper? Lots of issues when you go to sell your business. I got a whole four chapters on that here. But, but transferring the stock to the crt, freaking easy. We do that in an hour. So we transfer the stock to the crt, then you sell the business, then the money goes here. And what we're doing is an equation. How much is the write off, how much is your annuity and how much goes to charity. We're going to look at your age, how much money you want, Figure it out. So do them all the time. Did it with a cement company once. A cement company. It was pretty cool. Okay, I'm going to go over here. Who do you want Christian? Christian Ibanez. Hi Mark. I just recently found your channel. Thank you, Christian. If I make a living off day trading and make 50k a year, would it be smart to set up an S corp? No. Remember these four types of income. Day trading. Excuse me, had to sneeze. Day trading is investment income, Christian. You're going to pay short term or long term capital gain. That's all it is. Don't be offended by this. What you're doing is awesome. I want you day trading, but I want you day trading in your Roth IRA. Now you say, well Mark, I need that 50 grand to live on. Could you live on 40 grand? Could you take 10 grand and peel it off and start day trading? Two accounts? Now you're paying taxes over here to live on it. This other one zero taxes people. Peter Thiel helped start PayPal with 100 grand in a Roth IRA. It's now estimated to be worth over $100 million. Opportunity shift, Christian. If you're going to day trade, day trade with two hats, one hat is for you, the other hats for your Roth, do both. I hate to tell you, day trading is not a business unless you're a licensed broker. And series six, Series seven. And you're trading for other people as well. And you're working for a brokerage. Independent ria. Registered Investment advisor. It's just investment income. And frankly, Christian, you're not paying self employment tax over here. Hell, you might be getting long term capital gain on some of the stuff you hold 12 months. So Christian, enjoy your lane. Stay in your lane, bro. You're over here in the investment lane. And that's okay. That's okay. All right, next question. Brady, does it make more sense to borrow against some of my bitcoin and use the rest collecting interest to pay off the loan or hold it in a Roth and sell it once tax free? Wow, Brady, tough question. The first answer that comes to mind for me is, Brady, do both. Because see, look it, if you've got bitcoin and you're borrowing against it, the first thing I want to know is what are you using the money for that you're borrowing against it now? Oh, here's an idea. Everybody check this out. I like this. Now remember, I'm going to use black here instead of red. Okay, this is good. This is a new strategy. I'm just kind of off the cuff here with. It was kind of fun. So let's say Brady has a day job. Brady. And from doing this bitcoin stuff, it sounds like it Might be, you know, reality. Brady's over here. So here's Brady's world. Brady has a W2 cool. Coming down here to his 1040, right? Everybody makes sense. He's got his little living trust down here. He's building his trifecta. And let's say he's got a little side gig, you know, maybe he's got a little side gig that makes 20 grand a year. Just a little side business. All right? Now check this out. He's over here doing bitcoin btc. Now, he's doing it in his own name, his own trust. It's under his own Social Security number, right? That's what it sounds like. Now listen, let's say he has this bitcoin. Let's make it look round, bitcoin. He borrows against it and he takes that borrowed money and takes some of it and funds a Roth ira. Could he do that? Darn right. He could even have a 401k at work and do the match. Maybe he gets a match up to five grand. So he puts in his five grand and they do the match. Well, how much can he put in a 401k in a given year? Anybody in the room? Come on, how much can you put in a 401k in a year? 6,000 is the Roth. 18,5 is a guess. We're close. 19 5. So he can put 195 in a 401, but he only put 5 in the company match doesn't count towards the 19,5. So he can do 14,500 more. Now check this out, everybody. This is sweet. I just got tingles. I'm excited. So he's got a side gig. Let's say it's a little llc, not even an S Corp. That's cool. Can he open a solo 401k? Yes, he could open a solo 401k sponsored by his side gig. Can you have two 401ks? Yeah, he can have two 401ks. One is his day job where he gets a match of five grand. But now he's going to borrow money from his bitcoin, fund his Roth and he's going to borrow some more. Put it in his side gig as a contribution, which he can do. Fund his solo 401k. What's the difference? 195 minus 5 grand, he can do another 14,500. That could be Roth. Then he's got a 6 grand here in Roth. He's now got $20,500 in a Roth. Put that in a little bucket and then over here he's got 10 grand in this bucket at work. You guys see that? Okay, now this is good. I think Brady's going to like this. So Brady's got bitcoin, and it's in his own name. Nothing we can do about that. He's sitting on it. I can't move that into a Roth. But he can borrow against the bitcoin to buy ethereum, litecoin. Deutsche. Is it doge or douche? Doge. Doge. Okay. He's gonna buy dogecoin, ethereum, litecoin. He could have a solo 401k. He could have. Look at this. He now has three buckets of money. He borrowed from his bitcoin to fund the Roth. He borrowed from the bitcoin to fund the solo 401k. Both of these buy more bitcoin. But he'll never pay tax on that bitcoin. That bitcoin is down in his retirement accounts. His day job, they're gonna let him buy some stupid ETF or stock, whatever. But over here, the interest that he earns might be able to pay off the interest on the loan. And it's a neutral, Right? That's what you're trying to do, Brady. You're trying to make this loan and. Interesting. Neutral. But use the money to build another bitcoin bucket. Boom. That's kind of fun. I've never taught that one, Max. Right? That's new. That could work. All right, who am I talking to next? Should we do an Instagram? One more Instagram? This is a very, very flattering. But I'll read it. How can one become as knowledgeable as Mark Kohler? What's the study plan? Well, thank you. But, you know, the reason why I read that, too, is I want to say this, and I mean this from the heart, kind of emotional today. Your education as a small business owner, it never ends. It doesn't. You're never going to arrive at knowing enough. I haven't. I've learned something today at a joint meeting of all of our attorneys, I was like, really? That's cool. I'm learning constantly. And don't compare yourself to me or anyone else. It's you. You just be the best you you can be. Some of you, you can read three books and listen to two podcasts a day. Some of you, that would drive you crazy. But do what you can listen to one podcast a week and read one book a month. That's okay. Don't compare yourself to anyone else. We're all human. You're perfect. Just the way you are. Do the best you can. Keep learning. Now, I would hope you pick up some of my books, participate in my workshops every year, listen to the podcast. Heck, I'll teach you everything I know. I'm trying to. Sometimes people who listen to me for three or four years, go, mark, I'm done. I've learned everything you know. Fair enough. It may take three or four years, but I'm going to constantly be beating you up with info. Okay. And I had one other comment here that I'm going to read on Instagram. It's from Brazilian mom again. But it's the same point. She said, how do I donate shares of a business to a charitable trust? Then she said, how do I donate Bitcoin to a nonprofit or my charitable trust? And, Brady, this is probably in your world, too, because whenever you transfer Bitcoin to your fiat currency of dollars, you're taxed. So with Brady, look what he's doing. Brazilian Mom. He's borrowing from his bitcoin. He didn't sell any bitcoin. There's no taxable event there. He's just borrowing from it now. I don't. You know, Dave Ramsey's not going to say borrow from anybody. Stay out of debt, Dave Ramsey. But I'm okay with debt if it's making you money. If you get debt to buy a rental property and it cash flows and you're conservative in your equation, do it now. Am I going to tell you to go max out a credit card on a Caribbean cruise? Hell, no. But debt, that makes you money. I'll go toe to toe with Dave Ramsey all day long, and he saves lives. I love Dave Ramsey, but not all debt is bad. And guess what? We do need a credit score. We've got to play the evil game with the credit card companies because we need a credit score. Because we might want to buy a house someday. We might need an SBA loan. We might want to build our business, heaven forbid. And need a little credit line. And that's okay. But credit for sake of credit is not okay. But Brazilian mom says, how do I donate Bitcoin to a crt? And I said that earlier. This has got to be. Where's my CRT diagram? Here it is. It's coming up. Coming up. There it is. You got to go wallet to wallet. And I think you could set up a BlockFi account inside your CRT fairly quickly. I've been in line at Coinbase, BlockFi, Gemini. Where else did I apply? Guys trying to get an account for an llc. They're Backed up. So make sure any of you that want to do a crt, get the CRT set up, get the ein. And if you're going to transfer crypto to it, get your wallet set up and you wait till the run up comes. Because think about it, if you're going to donate it to a crt, you're not going to pay tax anyway. So wait for Bitcoin to rebound. Wait for dogecoin to rebound. Doge. I got to get that down. Okay, Deutsch. That's your Deutsch. You're going to fight it out. Which one is it? Okay, Richard Arcenida says, how do you set up stock investment portfolio making six figures, have nine figures? Richard, you're asking the wrong guy because I ain't no way freaking setting up a stock investment account. I'm going to self direct. I love directed ira.com people. And if you want to start buying what you know best, go over to directedira.com tonight. Once I had, I bought a plane once. It was a little bonanza plane. I wanted to be pilot and learn how to fly. And they call them doctor killers and lawyer killers, these little bonanzas because they're really fast. For some reason they fly into mountains at night. I don't know why. Anyway, so I got kind of excited about an FBO that's a fixed based operation and you might, you know, start a little plane, you know, thing. Anyway, I asked someone, how do you make money? And how do you make a million dollars with a plane or a little airline or commuter airline? And they go start with 2 million. And if you want to build a six figure portfolio, I don't know, I'm not your guy. I'm not gonna. That's not my area. All right, you want Kate, Katie? Okay. Okay, we're going to give away books after this question. Cat Row, look at those eyes. Okay, Cat Row says, I have a question. My son is day trading. It will be going to college in a year. Okay, so he's day trading everybody. What type of income is day trading? Is it tax free? Oh, I don't know. Did Cat say it was in a Roth? She didn't. So probably not in a Roth. Ira. Kat not liking that. Is it ordinary? Nope. Day trading is not a business. Is it a rental? Passive? Nope, it's investment income. So when Kat says that, my brain goes right here. Okay, he's going to college in a year. Is it true he can create an LLC and trade from the LLC so it won't jeopardize his Financial aid. Oh, my gosh, Corey, that's the question you chose for me, Cat. And everybody out there, you've got to learn this F word. And it's almost worse than the FICA word. Fafsa. Financial Aid for student. I don't even know what it stands for, except you want to deal with the fafsa. It's harder than a tax return, Kat. Everybody out there, I'm gonna answer one other good question. Damn it. Let me just say, if you've got a kid going to college, you want to understand the FAFSA backwards and forward. Is the ESA going to count against you? Is your parents income going to count against you? Should you not claim as an independent? If they have a stock brokerage account, is it going to count against them? If they have a 529 account? If they have an IRA? I don't know. I'm not a FAFSA expert. I'm sorry. But here, here's one thing I'll say. This is what I'm committed to, Kat. This is important. 90% of time, student financial aid is glorified. Give you a student loan, that's really what it's about. Can I apply and get a Stafford loan? And people rack up student loans to what I think is the next crisis in America. Trillions, trillion student loan debt in America right now. This was even a political issue. We need to forgive some student debt. Really? I paid mine back. No one forgave my student debt. Now, I might make some of you mad, but here's the deal, Kat. If you're applying for FAFSA for your son, it better be for grants. It better be for free freaking money. Because if you're doing the FAFSA just to get him a student loan. Two words. Community college, baby. That's three words. Community college, baby. So my kids, you want to go to usc, you want to go to University of Washington, you want to go to Alabama and go to one of these big state schools? That's real sexy. Or Harvard or Yale or Columbia, Get a scholarship because I ain't paying for it. And you aren't going into student debt for 200 grand. Go to community college. Get the generals out of the way, see if you can get a scholarship in the third or fourth year, transfer to the big school if you need to watch out for student debt. Anybody out there applying under fafsa, make sure you know why you're flying into FAFSA territory. Because it can be ugly. Okay, what am I doing? Asayah Hall. How young can I hire my Child. I have a product business and actually developed a line for my baby. Who is the model? I use her in marketing. She's eight months old. Okay, Esaia, you said all the keywords for me. I'm liking it. So everybody, let's just do Asaiah's little model here. Asaya says I have a small business. Okay, so we got to look at our trifecta. An LLC would be over here with rentals. Over here would be the Roth ira. Asia has a small business. Let's say it's a sole prop. That's what I'm going to assume for the moment. I developed a line for babies. Maybe it's clothing or toys. And I use my daughter, 8 year old, 8 months old, as a model. If it's legit, can asia pay his 8 month old to be a model in their business? Yes. If it's legit, you better freaking have professional photographers. A real business making real money with other models than just your own kid. But if you can check all those boxes and it's very subjective, I'll sign the tax return. But here's what's cool too. If Asia pays their daughter who's eight months old, that's earned income. What can the baby do with this? Daughter can open a Roth ira. What? Now that Roth IRA could be a partner in the next LLC to buy Bitcoin or rental property. So your daughter could have a Roth IRA before she's one year old. But I'm going to make sure that you've got a legitimate business. That's the question mark. I don't know. Okay, I'm giving away two more books now. These have to be ladies. Sorry guys don't turn out. But I'm going to say this to everybody before you go, Please subscribe on YouTube. Hit the bell, icon. Every time I go live, you'll get a ping. Give me a little like or a love or share this video if you find it helpful. I really appreciate you. I appreciate the small businesses in America and all of you out there with your side hustle and side gig. Don't give up. Okay, here's my winners. Cory. Torra Santos. Now, if you're a guy with the andronomous name of Torah, you could have been a winner. Maybe. But Torah is maybe a lady sounding name. So Torah, this book's for you. What should I say? Torah, fund your Roth. I've got another good one here too. Torah, fund your Roth IRA. There you go. Okay, who's my. Tiffany Kincaid, 1905. Look at. She answered the question. Too. Was she the first one? Oh, other people said it, too, but she got it right. Tiffany Kincaid. Good answer. You were participating. Tiffany, I'm going to give you some very sage wisdom here in the book for you. Buy low, sell high. Any of you can use that if you want. Ooh. Roth and roll. Buy low, sell high. I'm going to throw it in there. Roth and roll. Yes. I'm a geek. I am sorry. Okay, Tiffany. Thank you. All right, everybody, keep living the dream. Don't give up. It's going to be hard. Please subscribe. Please give me a little bell icon or a five star, whatever the hell. I appreciate you. Have a great week and be safe. And buy low, sell high. See you next week.