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Crypto Tax Basics and LLCs

Clear Explanations. Crypto Taxes Simplified.

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Protect Your Coin Property Rights

Cryptographic coins are legally defined as Property (US).

Learn from phenomenal tax and law guru and small business advocate, John Jay Singleton how to LEGALLY change your property rights (coins are defined as property) using a tax deferred Limited Liability Company (LLC) and a Private Membership Association (PMA).

Additional resources by Singleton: | AceOfCoins.Club | is an open source learning site and does not provide financial or investment advice. The information and interviews presented are educational tools. Please research. These ideas can also be used in other nations to acheive a similar result. Details on Canada, California, Ireland at bottom. The authors recommend that you listen to John Jay Singleton for 2-3 months to absorb all this info and then open an LLC.

Crypto Tax Basics

J.J. Singleton is a staunch supporter of entrepreneurs and small biz.
LLC and Deferring Capital Gains Taxes with John Jay Singleton
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Crypto Basics with John Jay Singleton and Cosmic-Crypto
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Understand Taxable Gain vs Value Appreciation

When are crypto gains taxable in the U.S.? This is the big question. Virtual (cryptographic) currency is legally defined as property by the IRS (U.S. Internal Revenue Service tax law).

Only when you convert the crypto coin format (the property) into the US dollar format does the transaction become legally taxable according to IRS statute.

The media narrative and advertising would try to convince you otherwise. Core Concept: Currently, only when property gains are converted into USD (dollar) format are they taxable.

Remember The dollars are being taxed, not the real estate property and not the crypto property. ~ John Jay Singleton

Use cash-basis accounting. Cash-basis accounting means taxes are paid when you realize the gain in dollars. Please see videos above for detailed conversations. Note that crypto exchanges typically use acrual-basis accounting meaning taxes are paid within a certain time limit regardless of a change in format from crypto to fiat.

Format Change. So start watching the format changes (currency changes). Follow the process. Example: The U.S. government has jurisdiction over dollars. The government taxes capital gains (real estate property gains) in dollars. Crypto gains (property) when converted to dollars are taxed the same way as U.S. real estate gains (property). When you sell (convert) your BTC (bitcoin-crypto) into the U.S. dollar format, this is considered a capital (property) gain and is taxable.

NO Format Change. Core Concept: Trading between cryptographic coins, for example, trading BNB to LTC, is an appreciation of value, not a capital (property) gain. Why? There is no format change to the U.S. dollar. I.e. There is no format change from property (crypto) to U.S. dollars. So there is no dollar gain. No dollar gain, no tax.

To say it again with different words, there is no gain in (real) dollars (in a dollar account) when the trade between cryptographic coins occurs. Learn more from John Jay Singleton and

Use an LLC to Defer Cap Gain Tax

Core Concept: Legally, LLCs do pay capital gains taxes, the question is WHEN. Do you want to pay now or do you want to defer your capital (property) gain taxes? Cryptographic coins are defined as property, so why not use an LLC to protect your property?

John Jay Singleton: The Taxable Gain to the LLC is DEFERRED [default setting]. YOU DECIDE HOW LONG. The dollars are being taxed, not the real estate. As long as the LLC never files a return, it does not have a tax liability [in dollars]. [I.e. filing a tax return for your LLC indicates that you have chosen to pay taxes now, instead of later.] ...You are using the LLC to [legally] change your property rights so that you don't have the tax liability. ~ John Jay Singleton, LLC and Capital Gains Taxes.

LLC Structure

Again, follow the tax process. Your tax filing action indicates your choice. The way you structure your LLC matters. By default, your LLC it is given a tax-deferred status. Why would you want to change this? So, which IRS forms are you filing and why? Filing a tax form changes your tax status. Filing a 1040 for your LLC removes your default tax deferred status. By your action of filing a tax return, you are indicating that you want to pay taxes NOW, not later.

Change Your Property Rights Using an LLC

John Jay Singleton: [The] definition of a tax is that it must be paid. The question did you incur the tax liability? ....There is no such thing as voluntary. [However] it is VOLUNTARY to CREATE a tax liability in most cases....I look at the IRS as another financial risk, and it is very easy to manage that....All you've done is CHANGE your property rights so that you don't have a liability. ~ John Jay Singleton, Taxes, LLCs Interview.

Details for Canada, California, Ireland and More

LLC Strategies; No Crypto Tax in Canada or California.
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Ireland LLC Crypto Tax Strategies.
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PrivacyFight on Tax History

Crypto Tax and CPA Discussion.
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