 Yeah, now we've got a couple of questions that look pretty good. I don't have the answer to, here's the first one. Oh my, our bossy says, wanna make sure I understand the loss. Let's say I receive crypto or by crypto less than 10K. And tomorrow that surges to 100K and I sell it. What do I need to do? That would be short-term capital gains, but Shian, what do you got with this one? Correct, I mean, that would be a short-term capital gains which you had to pay taxes on. And your situation has nothing to do with 6 to 50K, we just talked about. Yeah, this is only if you're dealing with businesses. And again, if the business that you use your crypto to buy a good service or product and they don't get your information, it is on them and they face those repercussions for 15 days or a filling charge, it's not on you. But this one is just a straight up short-term capital gains which is pretty hefty. In the United States, it is of course in your tax bracket plus whatever state that you live in if you're in California and York, have fun paying a bunch of that. But yeah, hopefully that actually happens but hopefully it's been a year or so you can use or you can get into long-term capital gains unless you're in Germany. Apparently if you hold it over a year you have no capital gain which is a good reason to move to Germany. All right, Sasha asks if people get airdrops over 410,000, that's an interesting number. And don't even notice they are charged. Oh, this is for, again, this is just for, this has nothing to do with airdrops and you're getting more than $10,000 because this is for businesses. Only if you interact with business. Again, if I give Sheehan, right now Sheehan would you like a Bitcoin? Sure, I know. I'm gonna send you a Bitcoin right now and I send you a Bitcoin which is worth I think $43,000 right now. Has nothing to do with it. And it's just, it's for me to him. And that transaction actually isn't even taxable as well because of moving wall to wall. Has nothing to do with this law. This is all about businesses interacting with businesses or not. And CryptoClutch says this is only if you send or receive another party what if more than 10,000 is transferred to a decentralized wallet? Nah, no, right? Again, I don't see a business here. The 6050I has nothing to do with this transaction. Exactly. So, and I will say, here's a question I get a lot. Am I gonna get taxed? Let's say that I have it in Coinbase and I move it from Coinbase, a centralized exchange to my cold storage wallet, my nano ledger or my tandem. Do I get taxed for that transaction? No, no, no. You're just transferring crypto from one account to your own to another. I know. It's similar to, you know, I know probably, you know, but for the viewers, it's literally like, you know, moving cash from one bank account to your own to another bank accounts. There's no taxes involved there. Ron H. says it correctly, what happens in DeFi state? I'm gonna use that. What happens in DeFi stays in DeFi. Very nice. No one pays tax in crypto, says Alex. I gotta tell you, that is a recipe for disaster because I know people will say, well, that's taxation is theft. It may be, but also it is punishable by law right now. I'm not here to say that you have to, you do what you do. I'm not your dad or financial advisor. I'm definitely a CPA, but I will just tell you that there's a reason why they busted Al Capone and not for racketeering, but for tax evasion because the government has that ability. So definitely get into a program that you can report that because if you're on a centralized exchange, I guarantee they have your information. They have your social, they have your ID, they have your information and they report to the government. That's just the truth. Ah, this is a good one. It's always something I like to touch on. Voyager, FTX, Celsius, those type of things. So Voyager got back 33% of their original claim, which is paltry, awful. Celsius looks like they're wrapping things up and people are gonna get paid out. I think around 70%, it's pretty good. FTX is getting screwed the hardest, I think. And I'll let the other people talk about that, but how do we deal with this? Because now that there's a resolution here and in part, Sheehan, I think that Voyager is still trying to claw back things. What's this take Celsius? Let's say that, look, you're gonna get 70% back and that's it. Can we now claim the 30% loss or how does this all go through? Yeah, I think first of all that the whole process, that 70% has to be the final number. Because if there's any type of possibility of you receiving like the remaining 30%, you cannot establish a loss because it's kind of like a pending loss. So let's assume that 70% is 70% like you're not gonna get any dime about that. In that case, yes, 30% could be deductible and there are so many things that you had to kind of go through to see the exact type of deduction you can get. And sometimes you can get a deduction, but if you do not itemize on your tax return, you're not getting a benefit. So there's like so many things that you need to kind of like pass for you to get like an actual tax benefit out of that 30% that you wanna deduct. Yeah. Makes sense. So if this gets a little bit confusing for everybody, just remember that there is help out there. It's not like when Sheehan got into crypto, Sheehan, how long you've been in crypto and dealt with crypto as far as like accounting? Since only crypto like since like 2017, 2018. Yeah. And then so back then, how many CPAs were specializing in crypto? I mean, not many. I mean, still there's not many. I think there's a lot of people who are looking for CPA help too. Yeah. So just be aware that now there's a little bit more. So if you need help, there's help out there and don't like me personally, I'm scared of taxes. So I'm always trying to like make sure that everything's in compliance. So I don't wanna, I've already gone through an audit before like over a decade ago. I don't wanna do that again. Once you go through the one, you'll know what I'm talking about. Let's see. The only place I don't have taxes is my grayscale Bitcoin and Roth. That's a good point. A Roth IRA. If you have a Roth IRA or any kind of IRA, can you do any kind of trading within the IRA account and not face taxes? If the IRA account like custodian allows you to do that. Sure. I mean, it's Roth, right? So because you already contributed the money on like you paid taxes for. So the gain is gonna be tax-different until you get it back. Yeah, that's what I just wanna verify. I trust there's one that I've been using for the last two years or so. They told me I could. I did it every so often and I'm like, I should really ask Shehan that question. So great, we're good to go. Shehan, it's 5.30, when do you gotta get out of here? I can happy to wait for another 10 minutes or so. Okay. If there's any questions, yeah. That was a bowl of the questions. Do you have to show the IRS how much stake rewards you get for the year? And this is a big thing because like for staking rewards and airdrops, let's just cover the staking first. You do staking in a pool, you get a stake reward every five days. How do you get taxed for that? Is that when you sell the, let's just take Cardano, like we have a stake pool. You get a Cardano today. You get 10 Cardano, each Cardano was worth roughly 50 cents, 55 cents. How do you get tax on that? Yeah, so according to the IRS guidance, staking income is taxed at the time you receive those rewards. So let's say like the time I get the rewards today, it's worth 50 cents. Let's say in two weeks, Cardano goes to $10. Who knows, it's a crypto, right? So does that mean that I am tax exempt from $9.50? Until you sell. I mean, unless if you were to sell at $10, then you will have to pay taxes on that capital gain, which is the difference. But if you don't sell, you only have to pay taxes on that 50 cents. Oh, so you still got to pay taxes. It's an unrealized gain, correct? Gain, the difference, yes, yeah. Man, sounds about right. Okay, and then airdrops, I guess would be the same thing. There's a lot of different things with it. With the Dexes, Jupiter just had a big one. Let's say you get $10,000 worth of an airdrop. Do you owe taxes on $10,000? And would that be short-term capital gains or long-term capital gains? Do you owe taxes? Yes, I know it sucks, but the answer is yes. You pay, that's considered ordering income. So you pay taxes based on your tax bracket. Ah, okay, okay. So it's progressive tax. So depending on what you're at, 25%, 32%, 33, whatever it is. Okay. Hajami says, US Embassy sends a reminder each year for taxes overseas. And I've also heard this, too. We have people living abroad and they get, doesn't matter where you go as an American citizen, you're still getting a tax. They even want to help you do your tax at the Embassy, Southeast Asian country. How does that work? I mean, it's just whatever your income is outside the country, you still have to pay your tax bracket in the United States, even though you may live in, like, Spain or England. Yeah, so the US has a system called a worldwide tax system. So it doesn't matter where you live, as long as you're a US citizen or a US person, you had to pay taxes in the US for the income that you earn from worldwide, you know, global sources. The way to not do that is renouncing the citizenship. But obviously, you had to weigh in the pros and cons. Yeah, that's true. I'm not gonna even delve into that subject. Gemma's got a question. Sorry if I already covered this. What if you are paid with crypto by your employer via 1099 that you claim with your taxes? I would assume this is just whatever your tax bracket is you get paid? Correct. So the 1099 is gonna show you your annual income in US dollars. And that goes in your tax return and that's gonna get taxed at your tax bracket. Awesome. How about this one? Question for Xi'an, my nephew is studying accounting. Would you advise any undergrad to specialize in crypto accounting now? Do you think that's a good wise move or to just be jack of all trades do everything? I don't think our education system has caught up yet to kind of have crypto as a specialty. That's, I mean, based on my knowledge, but if you can get exposure to crypto as a specialty as a minor or something like that, yeah, I would encourage anybody to do that, yeah. I gotta agree. All right, let's see. Omaris again, how would you report crypto if you use non-US exchanges and do not use your US driver's license, US password, but you use your dual citizenship details? That's a tricky question because let's say you have two citizens or yeah, you have dual citizenship. Let's say you're an American and also you have it's in the UK or Mexico and you use that one from, let's say, the UK. So would it be the taxes in the UK then? I don't know the exact answer without knowing the details but generally speaking, US has a very aggressive tax system so they probably want you to report that income in the US tax return but if that income is getting taxed by another jurisdiction, they could give you a credit depending on what's called treaties between the US and that specific country that you're a citizen of. So without knowing the details, it's hard to say how it's gonna get taxed. That is tough. Hey, this one, I wanna have you, if you know anything like this, can you tell me how to send crypto to my grandson who's 12, do his parents need to create an account or can he have his own? How does that work with a centralized exchange? For a few reasons. Yeah, so I think the nature of this send, I think it's more like a gift, right? So you wanna gift crypto to a miner. I think for stock brokers, like parents can have accounts on behalf of their miners and then that miner becomes like an adult then it kind of goes to that adult. I don't know if centralized exchanges have this option today but you could probably care like a trust for your miner and create an exchange account under that trust name as kind of like a business entity and then transfer your coin to that trust which owns the coin base account or whatever. Yeah, you can do that. Here's what I'll tell you, that's a good idea to do a trust. I think everybody should do a trust. We have it lined up for us, for our kids and grandkids. But if you wanna just get this done now, this is what I did this Christmas. So these cards right here, here's Tangem. They come in a pack of three. And when I did this Christmas was, I gave these Tangem cards I bought them for my sons and my grandson. And what I did is I loaded up, I mean, the kids, they know how to deal with this stuff. I just got my new one of this. I just asked them for their wallets. I needed their Bitcoin, their Salon and their Dogecoin wallets, which they found out. One didn't know how to do any of that stuff and we did it pretty just fine. Gabe was here and he actually photo bombed me from one of my live streams. And I gave him one of these cards. I go, this is your card. And I want you to have the app on your phone. These kids have apps now. And so I'm gonna give you some crypto, not that much. But what I'm gonna do is I'm gonna keep these other two as a backup. And also I'm gonna keep the seed phrase. So if you lose it, which I expect you to lose it because you're a young kid that will have everything backed up. And that's how you can do it. And then they can look in the app and just see like, oh, this is how this is where it's going, this is how it's appreciating, this is, oh, look at this, the price, everything else. It's just a way to teach your kids and grandkids how to deal with stuff. So that's what I did and you can take it as a go from there. Or you can get a ledger. I haven't tried to figure out that nonsense, but sure. Let's see, ancient synonymous is trader Joe. Trader Joe, that's a dex for avalanche, I believe. It works out pretty well. Let's see, taxation destroys money, state spending creates money. I guess so. Oh, I guess so. Wow, the government is so evil and greedy. Who to thunk it? Let's see. I didn't notice you pay on all swaps in Canada, seeing this conversion to fiat then back again. But that does make sense because if you're, let's say I have, I buy Bitcoin yesterday at 40, well, let's say I buy today at 44,000. It goes to the 50,000 tomorrow and I transfer it into stable coins. That's a taxable then as far as I understand. Correct. Let's see. Add your child as a beneficiary to crypto accounts. That way it can be theirs in spirit. Here's a good question. You wanna take this one? Would IRS audit someone with under like 50,000 net worth? I mean, they don't have any car routes for their audits. You know, there's no car routes. I mean, yeah, anybody's subject to an audit based on how they pick you, you know. Yeah. Oh, Mark says it's wrong. I'm an American citizen with work permit. I pay local taxes in my new country of residence, stopping misinformed by YouTubers. So Mark is saying that he doesn't pay anything, I guess, for to America. I believe that's incorrect, but I could be wrong. Maybe. I don't know. I need to have like more information. It's hard to say. Yeah. But I talked to, it's different though, because like Mark, I see like, you might be in the Air Force. I could see the picture. A lot of the people that I've dealt with, even if they're in the military or they're a civilian contractor, when they go over for the military itself, they're not paying, they're paying taxes. Actually, no, they actually have a reduction in tax of what they actually pay. But again, we'll see. This says if you make under 70K a year in a foreign country, you don't have to file. I wonder if that's for all different country that you go to, and how it is. So, all right. What's about this? What's Cheehan's prediction about the Bitcoin this cycle? I mean, hopefully the ETF goes through. I just do it at this like yesterday. I think the magic number everybody's waiting for is 50K. So once it reached 50K, I don't know where it's gonna end this cycle. Yeah, come on. So this is the same thing. Hold on, let me see here. Mark is wrong, you're still gonna file with the US. You can use the foreign or in tax credit, it's still a pain which you need to get taxed on what you were taxed on in your, again. So, and I just took a real quick search of it. If a US citizen resident living, and this is from the IRS.gov. If you're a US citizen resident living or traveling outside the US, living or traveling, you generally are required to file income tax returns to state tax returns and gift tax returns to past mid tax in the same way as those residing in the United States. Now again, there might be stipulations for different ones but this is what I'm pulling right from the IRS website. So, I would definitely recommend everybody take a look at the, not just the laws because you're not gonna do it, get a CPA. It's a lot easier and it saves you a lot of headache. All right, Cheehan, it's 540. I don't wanna keep you. I know you got another meeting. Everybody, I'm gonna stick around. We're gonna talk about this dump today that happens in the market and go from there. Everybody, if you wanna find Cheehan, there's a link in the description for his Twitter account and of course his link tree and everything's there. Cheehan, thanks for stopping by. We appreciate it. Thanks for having me. See you guys. All right, see ya. All right everybody, that was good stuff. Let's talk, everybody's been talking about this. Let's just go over this real quick. And everybody knows why there's a dump today. I'm assuming because everybody and their mother was talking about this. It was just from one report from a matrix port where they said this is their belief is why the SEC will direct the Bitcoin ETFs. And basically it came down to politics and why Gary wouldn't approve it. And one of the things they said was, one of the actual things I said, which was political divide. And they're right in this one instance or as far as like the commissioners, it's Gary, Caroline and Jaime. And those are the three Democrats and Mark and Hester Pierce, Crypto, Mom. They're both the Republicans and it looks like they mostly side with Gary. So we'll see how it actually works out. But that was the reason for this dump today. I don't really care about dumps or pullbacks and things like that. What I do concern myself with is how this, I have never heard of matrix port, ever. It's just amazing to me how one article can drop Bitcoin. I think it was by 10%, 45, it's quite a bit, 45 to 40. No, it wasn't 10%, it's 7% roughly. So that's the thing that concerns me. And of course, people say, ah, Rob, every market's manipulated. I know that's true. I mean, gold and precious metals, JP Morgan did that as well and they got busted for spoofing the markets. But it concerns me that our market is controlled and manipulated that little bit for one stupid article that came up that says, hey, we think this is gonna happen and everybody lost their mind. So it's just a good lesson, I think, that as we move forward, that stuff like that's gonna happen. So I know people are like, well, I'm gonna go long, I'm gonna go short, I'm gonna go on leverage. Did you see that coming? Did these leverage plays see it coming? No, the one they saw coming was an ETF potentially getting passed. I'm still on the fence about that one, but that's why I have the rules on the side. But of course everybody can do what they wanna do. Let's see. And Wick says it perfectly. Everyone tries to generalize tax advice, but you actually need individualized advice. It's very true. Before I had a CPA, I was doing the individual filing on TurboTax. And it works out pretty well, but you're leaving a lot of things on the table when you don't have it individualized and you're taking deductions and you're taking itemized deductions and you're really putting into place a plan. And that's the big thing. That's the difference between like the rich and the super rich and the people who are just kind of barely making it. There's just a lot of things that you can take advantage of and it's not tax evasion. It's not tax evasion. It's minimizing your taxes. There's a big difference in there. So I would definitely urge everybody to get a CPA and also use a tax software like Coin Ledger. I use those for, this would be my third year straight and it works out pretty well. Also, if you sign up for Coin Ledger's link description, there is a free portfolio tracking software that they're rolling out right now. So it's great. You can show you what's your, how much you're in profit. If it's short-term or long-term capital gains where all your crypto is actually stored if you've got multiple different accounts and where everything is and kind of add everything up, it's pretty nice. So, okay. Mark's still going. I'm 100% not wrong. I've never filed as a permanent resident and your manager should have been like, all right, man. So look, it's individualized as expected. I paid 170 last year. All right, there you go. Let's see. Elizabeth Warren is cackling today in her mansion which she flew to on her private jet and she wants you to be careful of what you do because you're destroying the environment as well. How much is a tax advisor? CPAs are different and they're different in different locations. So, I know like, here, I'll show you this. So if you go to Coinledger, links in the description and of course, if you wanna run this through, it's free. You just can't generate a report but you get to put everything in. And then up here, portfolio tracking, I already had access to it. It's in beta, they're getting out the kinks but it's doing pretty good. But if you scroll down here to where it says, find a crypto tax expert. Everybody that specializes in crypto itself, either law groups or CPAs, they're all right here. So I would look through that list. Again, links in the description. Take a look at that. Cause it's coming up. I mean, it's April 15th is a, wait, wait, wait. Hey gents, good show today. I checked it out. It wasn't, Bolshunis was the other guy for the ETF filing. So good information. Everybody, if you Google Sin City Crypto on YouTube, they've got a great channel. They have a great, they have a really great studio. A lot of effort put into that. Very nice, very professional. I just had this stupid green screen. So, yeah, Tom says, hey Rob, I think there was a huge leverage lungs out out there and they were liquidated. That's true. I'm not sorry for anybody that does it. I mean, those are the games you play, right? They don't, most of them are, most of them are fine. Seth says, my CPA is super smart. She figured it out, get a better CPA. They did that, but the guy to perspective says, it's a US tax law to clear off foreign earned income. All US citizens are playing with this no matter where they reside. Again, talk to your CPA on this one. Sin City says, we're on the street is with the new crypto tax rules. We can get out of debt as a country. No, no way. What are we at, 34 trillion? Let's take a look. There's this website, US national debt clock. And if you just type debt clock in the Google, you'll see it. US national debt today is 34 trillion dollars. That's what the T, I didn't know that word exactly existed until I got in the crypto. Take a look at this. You know what trillion dollars looks like? Let me show you. This is at scale. So that's a million, that's 10 million. And then for scale, you're gonna see a person, animated person, that's a hundred million. Not too bad, if you think about it. And then this is just one billion. I don't know if they did this in ones. I don't know if they're going to the club or something. Oh, it's one billion, okay. Maybe they could have done 20s, I'm not for sure. Maybe a hundreds, who knows? There's 10 billion. And then this monolith, this behemoth, is a hundred billion, a hundred billion. And this, right here, ladies and gentlemen, is one trillion dollars. And we got 34 of those. I don't see us getting out of debt anytime soon. I know some of the politicians will say, well, you know, these crypto cheats are just dodging us and they gotta pay their tax. I'm telling you right now. First of all, in 2022, did anybody have massive gains in 2022 where we were dodging the taxman? I wasn't, it wasn't a great year for us. 2023, a little better. 2024, probably massive. So, I mean, let's hope so. But first of all, let's get the spending under control. Also, let's pass the law to where the politicians do not get privy to insider information or able to trade on that insider information and thereby make a boatload of money at the expense of the backs of their constituents. Just saying. That's just my, will be my goal. Now that's gonna happen. You're welcome. Guys, I'll be down there. I gotta go see my brother. So, we'll hook up, grab some beers. Oh, speaking of which, Thursday night, everybody meet up here at the San Juan Smokehouse. So, special guests will be arriving. So, if you guys are in the Puerto Rico area, we'll be doing ribs and beers. Could be worse. And first round's on me, every time. Let's see. Yes. Hey, Rob, have you heard of Clearview Tax on YouTube? Thoughts, thanks for your educational content and video. Now, that guy, if you guys don't know who Clearview Tax is, Clear Value Tax, I think it's what it is. That guy's got it down, locked down. He has no background, it's just a white wall. There's like, maybe some lights and he just tells you the news. And that's it. And he gets like, you know, millions of views every time. It's amazing. Yeah, very well. Let's see. I should pray. What's a felony? Yeah, you'll know it when you get slapped with it. That's what I say. Yeah, so let's see. Steve says, thumbnail says 15 days are a felony. Yeah, I didn't make that thumbnail. That was chatGPT. ChatGPT makes all my thumbnails. That's why the spelling's awful. The visuals are great, but the spelling is just ridiculously bad. And that's it. Hey, last thing before we take off. I was on this X Spaces today for this game, Farcana. And we talked about this. I'm gonna be talking about this game a lot. This game right here, web three game that's coming in, and it's got some backing by some of the big players in the space, Animoca Brands, Polygon Ventures, Fenbushi, EmuChain, Aussie Capital, Yatsu is also the founder of Animoca Brands. That's not what's important. What's important is, I took notes about this. Is that this game, first of all, it's gonna be free to play. Let me see if I can show you. Regardless, it's a third person shooter. It's gonna be free to play. They're rolling it out. I think it's already out in some parts. It's Windows based only, but the tokenomics are what is important. And the tokenomics is, the token can be used sparingly for different things within the game, but it's a play to earn. And it's not, you're not earning the token, you're gonna be able to earn Bitcoin. And when I heard that, I was like, Tommy Mora. So I'm gonna do a deep dive on this game. The TGE, I think is the eighth of January. So I gotta do this quick. And if you're looking into gaming, that's what I think is the next narrative. And the narrative coming up is, of course, Bitcoin ETF. DEX is AI and web through gaming, I think the next narrative. And I think with this game, Farqana, looking pretty good. It didn't pay me to say like that. I'm actually going to be heavily investing into it, like everything else I talk about. So if you think that I'm not biased, you're wrong. I'm super biased. And I only talk about the things that I actually invest into, and that's it for today. So look, everybody, thanks so much for stopping by. I appreciate it. If you liked today's video, give it a thumbs up. Consider subscribing. I really talk about is time-sensitive. That's it. And I will see you guys on the next one. Thanks so much. Adios.