anytime you use or trade your virtual currency that's a taxable transaction hello Hill Robert Kil sakovich dead radio show today the good news and bad news about taxes and so welcome to the program to thanks Robert always good to be here with you yes so and then I want to plug this thing here I mean I can't believe it it's actually readable M sent me this wonderful document here you know generally whatever sends me a tax notice from the uh Department of the Treasury Internal Revenue Service I don't need I don't need sleeping pills I just fall right asleep but this thing is pretty good I can read it and it's about it says the Internal Revenue Service is aware that virtual currency see you Bitcoin guys they got you got a Target on your back now they know you got some money and they want it so anyway Tom will make this a available to you I suggest you you get it there all the highlights here what you can and cannot do with virtual uh currency Bitcoin I have ethereum also I like the stuff and there's people who hate it well that's life so Tom um you know virtual currency of Bitcoin and ethereum and all that's a big news what do you see while reading these wonderful documents which you can go to your website at what's your website again wealth ability. com wealth ability. com so all you guys out there who are criminals on Silk Road with Bitcoin get this document I'm only kidding so Tom what what is IRS saying about virtual currency well they say a couple of things uh that I think it's really important first of all um that any time you use or trade your virtual currency that's a taxable transaction so I mean let's let's give an example let's say that Bitcoin became a you know normal trade you go buy groceries when you bought groceries with Bitcoin that would be taxable because it would be considered a trade for Bitcoin for US dollars so every time you spend Bitcoin every time you sell Bitcoin that's all of that is taxable and here's the thing so on your tax return now there is a box you have to check to say did you trade Bitcoin well that means did you do anything other than just buy it okay if you bought it you don't have to mark that box but any other use of it you have to mark that box if you don't Mark that box driver it's a felony this is this is not a civil penalty most things on a tax return are just civil penalties right they're just okay I PID the penalty get my wrist slapped on and and I go on my way not with this one this is a felony they will come after you if you uh don't Mark that and in fact you should have marked it trust me they are coming after I mean us because I've done very well with Bitcoin and ethereum but Tom knows my tax strategy I buy but I never sell and if I paid somebody in Bitcoin what would happen then Tom that would be taxable so if you if you PID them person I pay it it' be taxable both for you and for the person you pay that's right so as long as long as I'm buying my Bitcoin after I paid all the taxes which I don't pay anyway and I store the Bitcoin into my facet column and it sits there it's like my gold and silver right as long as I'm not using it it's not taxable it's actually just like the gold and silver so the same thing would happen if you went and used silver or you know silver or gold to buy something that would be a taxable transaction too so it's very similar to gold and silver uh the one difference is is that if you hold Bitcoin for over a year you do get capital gains rates so you get to tax that at 15% or 20% instead of ordinary income gold and silver have a different tax rate than that so you just that's the one primary difference between the two again I want to talk about this this is a document go to what's your website again Tom wealth ability.
com and in here are all the things you want to know all you new Bitcoin billionaires are soon to be billionaires you want to know what to do before you do something stupid like spend it so um what else would you want to say about Bitcoin or crypto well there's uh you know a lot of the the issue that I think people have is tracking it um you know I mean the whole goal for Bitcoin is not to be tracked but the reality is is that if you ever were to start to use it or when you trade it you do have to track that you do have to report that just like you were if you were trading stocks or foreign currency something like that so you know the compliance part of it I think is the most one of the most difficult parts of Bitcoin is you still have to comply just because it's not a a real it's not a foreign currency just because it's not the US dollar just because it's not a stock doesn't mean you don't have to report that transaction on your tax return and pay tax and I think that's the most important thing I think people miss that all the time that they need to know that they're in big trouble if they don't report this correctly the IRS will come after them well not that I'm suggesting this but isn't one of the pitch points one of the reasons for buying Bitcoin is the government can't track it that that is the that's one of the pitch points okay so the can they track it no they can't right now and it's a voluntary system right all of our frankly all of our taxes are voluntary system um but when they audit you and they ask you that question if you say no that's a felony so just know that you are you are um you're if they if they do catch you you're in pretty big trouble I thing I was laughing about is I see a lot of these really young guys who now become Bitcoin multi-millionaires and I watch them on their YouTube podcast and they're sitting these huge mansions now with they look like el el paccino and Scarface or something you know these huge dragons and all that around them so obviously they spent some money right well obviously they did and the reality is is that you know obviously the IRS is going to check on that and the IRS is doing more and more Audits and they're doing more and more audits on cryptocurrency here's the thing people think well I have Bitcoin and so I'm good but you only can use that Bitcoin for the most part if you convert it to dollars right I mean it's not like there's a huge Market where you marketplace where you can go out and buy houses using Bitcoin most people aren't going to accept Bitcoin in exchange for their house and so you're exchanging it for dollars when you do that exchange that's where the IRS is going to track you so it's it's converting it from Bitcoin to something else like dollars that's where the IRS tracks you and know that that's pretty easy for them to track so you know I years is when Bitcoin first came out this guy was selling uh condos in New York City in the Soho area and they're accepting Bitcoin so that would be trackable would it because you now have a record of the real estate also exactly because you have a record of that real estate transaction and you know who the buyers and sellers are and so you know the IRS can be looking at that or the New York State Department of Taxation can be looking at that because New York State's even more aggressive than the IRS and say well wait a minute where's the where's where's the gain you know where's the reporting on this good good and how um as you know I like all oil and you know and oil is under Fire right now because of carbon tax right which is good because I'm going to make even more money because I'm going to shift and become a grainy and I'm going to invest in green new energy because I get huge deals for carbon tax now of course of course you know capitalism is wonderful stuff you just keep moving around out there where everybody else is trying to eat granola and eat asparagus you know I'm shifting to a grainy buying carbon tax credits and making fortunes on it I'm going to buy oil with it but for years you know when you look at this thing here this is the point of having Tom in his book is taxfree Wells and you should have tax advisors I love this here Commodities down here because in my opinion this is where your wealth is stored so as I I explained the last other inter interviews is you know I make a lot of money Kim and I make a lot of money here you show this so let's say the rich dead company makes $1 million here and the next thing I do is I give the money to Kenny so $1 million comes down here and Kenny borrows 4 million of my one so I've now moved my 4 million over here as five so one plus 4 equals 5 and that's this other tax this is part four of a four-part series so please listen to Kenny and Tom and myself and Kim talking about how the entrepreneur like Donald Trump unlike Hillary and the other characters I make my money here as a business owner the money then goes into Kenny who borrows $4 million and we buy5 million of real estate how does that save me money Tom well so there are major incentives in the tax law for buying real estate um investment real estate so you get the big tax deductions from the real estate that offset the income from the business so effectively you end up not paying tax on the business income because you did what the government wanted you to do and put it into real estate and and you know very well Robert the same thing happens if you put it into oil right or if you put it into solar you get the same type of tax benefits so that you're not paying tax on your business income or your other income so let me just I'm going to take it to it because this is what we teach through our cash flow clubs this is Advanced Tax strategy and real estate strategy so it's five million let's say that five million property appreciates up to 10 million I borrow out the five so went from five million it's now worth 10 million canny raises the rents I pull out $5 million in cash is that tax Fram money that is taxfree money debt is not taxable and with that I buy Bitcoin exactly so that's how you make your Bitcoin not taxable or you know you have other options too I mean you can buy Bitcoin in for example you can buy Bitcoin in your Roth IRA I mean there's all sorts of things you can do here once you understand the tax law and how the incentives work see the problem with most people is when they make some money they want to spend it and that's the problem Oh I'm a billionaire in Bitcoin but I can't spend a thing because my capital gains tax will be through the roof you know but there's things you can do if you have a great tax treit just like Tom so we come back we' been talking more with Tom wheelright on how Commodities are your most important asset in my opinion I mean this is where my wealth is I don't save dollars it's just trash as Michael sailor says you know about Bitcoin is the the doar like holding on to a ice cube that's melting in your hand and they're going to you know this is 20 2021 they're going to put another 1. 6 trillion or nine trillion that means your Savers are getting screwed which means Bitcoin goes up probably gold and silver goes up through inflation but just because the product the commodity goes up doesn't mean you're rich you still have taxes we'll be right [Music] back are you worried about your financial Security in these unprecedented times if you are the next minute could profoundly impact your financial security imagine waking up to find the economy has plunged and your portfolio has plummeted 30 to 45% while banks are in turmoil holding your money hostage while waiting for FDIC intervention where would you turn for many this may sound like fiction but it's a stark reality for those that have money on the line recently Americans awok both the NASDAQ and the Dow plummeting over 1,100 Points each and triggering a frenzy of sell-offs History shows us how a single event can crash the market like the dotom bubble of 1999 the subprime mortgage crisis of 2008 and the pandemic of 2020 but today we're facing multiple bubbles commercial real estate stock bonds and Banks combined with the Relentless inflation the threat of global recession the Spectras of war and you have the perfect storm the consequences could be catastrophic plunging us into unprecedented crisis America is siding in the age of Discord with trust in institutions collapsing and the Democratic Norms unraveling the quality of life for Americans has declined wealth is concentrated among the rich while the mean American Family incomes stagnant creating a dangerously topheavy social pyramid moreover hostile countries like Russia China and Iran are working to destroy the US dollar gold is a no matter what store of wealth that you need that's why Robert has been such an advocate of gold and he trust Allegiance gold Allegiance gold is ready to help you incorporate physical gold as part of your portfolio and protected against economic uncertainty visit protect withth robert. com today to learn how you can qualify for up the $5,000 in free silver with a qualifying investment or give them a call at 8443 Robert remember to mention Robert and Kim sent you when you contact Allegiance gold secure your IRA or 401K today with Allegiance gold visit protect withth robert.
com or call 8443 Robert welcome back Robert K the rich radio show the good news and bad news today about taxes and if you're paying taxes this year means you got some bad tax advice and uh so this is for next year because if you're really smart you can make a lot more more money and pay a lot less in taxes legally and now that I'm a hardcore Bitcoin fanatic I listen to all their banter back and forth on YouTube and they saying yeah the US taxes my Bitcoin I'm moving to timbuck two and doesn't matter yeah but they'll that's what that's what I hear on YouTube or the you know they're they're gonna run to a country that respects um crypto and all this stuff and I I I listen to the old guys like myself and Jim rickords and Jim Rogers and he says never forget who has the guns never forget who has the guns he says remember those guys at tenan Square they stuck the finger up with the guy and they put a tank and they ran him over said and I always remember this Al Capone wasn't taken down for alcohol Al Al Capone was taken down for taxes and so um you can say what you like and all this I'd rather just hire Tom and make a million dollars and pay no taxes so Tom tell us one more time where they can get your your paper from the Internal Revenue Services just uh go to wealth ability. com and uh type in Bitcoin you'll be able to find uh this uh it's a it's an internal revenue bulletin yeah and it's just it's actually pretty easy to read I read it it was not bad but the point here is this I'm just read the Rich Dad philosophy is I don't you know Tom knows I don't have any stocks Bots mutual funds ETF because they're taxable and I like saving I don't save money I save gold silver Bitcoin oil as commodity because it's real it's base down here and I just explain to you how I can make a million dollars buy a million dollars of Bitcoin and pay no tax but oil is another one Tom so let's say I I have extra cash here coming from Kenny or however I get it which is part of the cash flow Club series let's have a million dollars and I give my money to my friend at you know Oil Company in Dallas let's say I give him a million dollar for oil exploration how much of that money is taxable zero zero um because uh if you if you have a million dollars let's say you made a million dollars from your business and you put that million dollars into oil you'd get a deduction of a million dollars to offset the million dollars uh from the business and basically you'd pay no tax and so it's a tax-free investment so this is what we teach at Rich did I have a business you know I have number of businesses but the one people know is Rich Dad I make a million dollars here it comes down here to Kenny he ramps it up to five million he has four millions of debt in it is debt taxfree it is yeah and it comes over here it comes on as five can it then raises the rents and let's say the property goes from 5 million to 10 million I borrow out the five million and I buy $5 million with oil what happens to me then so now you now you've got a $5 million deduction you actually need more income you need more taxable income at that point you it's backwards now you need to to increase your business income so you can actually use that loss so the other part of it is because of all this money coming in tax free because of Tom I'm stacking up my commodity column here so my Bitcoin is piling up I don't need the cash because I'm catching it off of tax-free debt coming off oh oh for sure that now you know you talk about being a greeny and and going that that direction so remember the same thing that we do with oil and the same thing we do with real estate remember all the incentives they're going to go towards green energy so they're going to go to solar and wind and and uh what whatever kind of green energy they have there's going to be not right now we don't just have deductions we have credits which is a dollar for dooll offset I mean this is like Nirvana from a tax standpoint where you can actually make money from the government by investing so I just I just you know through my friend Marin cusa you know we I just I just turned bright grein I'm now so grain I turn I look like a frog and because I'm getting carbon tax credits Tom what does that mean well so so what happens is is that uh carbon tax credits are credits that that the utility companies and the producers who who use the carbons like coal for example they can they can trade those so for example in the west now I was at a public utility for a number of years they in-house Tax Advisor and that's when the carbon taxes started coming up and so uh in the west they have for example really clean coal in the East it's really dirty coal well so the the so so my company in the West would sell its credits to The companies in the East and make money just on the credits because they naturally had cleaner coal to begin with so there's a there's a market here for there's always been and this is something we don't talk about a lot but there's a market for tax credits uh lowincome tax credit uh housing tax credits um solar tax credits there's all sorts of a of markets for tax credits God bless capitalism you know what I mean just is so wonderful and they're rich get richer I mean that I mean you know is it fair no it's not fair but it's the law it's the way capitalism works is is this true all throughout the world Tom it it is it's it's really fascinating to uh just watch how um when we go to different countries and of course I always look at the tax law when we go to different countries and they're remarkably similar the incentiv is because they they all want the same thing they want cheap energy they want employment they want real estate they want housing and so they the way they get their um their work done is they use capitalists frankly to get their work done and they give them small tax incentives so the capitalists put in and risk their money into these projects that the government wants y so anyway it's um there's a lot to learn and so anybody who says to you go to school get a job work hard save money get out of debt and invest in the stock market they're ripping you off you know because guys like me just will not do that and like I'm say God bless Alexandri kazio Cortez and the when I first heard that I went oh she's gonna make me a rich man so I invested in a whole you I've made a couple of million dollars on just tax credits this year and so it's capitalism is wonderful except the Socialists will never tell you that because they don't know it themselves any comments on that Tom I mean what's happening in America today so I mean the gap between rich and poor is horrifying well it it it is horrifying and here's the thing is that it's it's really a gap in education and you know as you say it's a gap in financial education more than anything because the rich get richer because the government gives them incentives and the poor don't know about those incentives and so they end up paying all the taxes and the biggest Point here is this is that when somebody's is live debt-free Tom am I deeply in debt very deeply in debt because debt is taxfree money we'll be right [Music] back welcome back Robert K the rich radio show the good news and bad news today about taxes so Tom before we go out can you explain why we're not cheating the government I mean you talk about incentives and all this why am I not cheating the government so here's what most people don't understand there there's very little of the tax law that actually raises Revenue most of the tax law is just the government implementing its policies okay so if the government wants to create jobs then it gives tax benefits I mean we saw this in the PPP loans right that was a good example of that where the government's saying well look if you can if you keep paying your employees we'll pay for that okay that's it's the same thing um most of them aren't direct subsidies like a PPP loan that was a direct subsidy most of them go through the tax law so if you want to know what your government no matter where you are if you want to know what your government wants to have done wants to have accomplished look at your tax law go to your tax says what is a you know for example what does the tax law say in my country about uh developing housing what do they say about uh commercial buildings what do they say about solar energ you know solar solar panels and what you'll find is is that most governments are incentivizing uh certain things that they want to have done because they want the capitalists to put the money to to risk the money and they're willing to take some of that risk off of the capitalists by giving them a tax deduction and so that's why when I drill for oil I mean America is now they So-Cal in energy independent if you weren't energy independent due to fracking and how much the green is go nuts God bless them but I'm G to get rich because of that but if we didn't have that we'd be at war in the Middle East which we are anyway because of oil and so by us by by incentivizing people like me to move my millions of dollars into oil the government gives me a tax break America becomes energy independent anyway Tom thank you very very much once again how can they get this beautiful document before they become criminals or your Bitcoin guys just go to wealth ability.
