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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 financial 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) Private Membership Association (PMA) at | AceOfCoins.Club | is a learning site and does not provide financial or investment advice. The information and interviews presented are educational tools. Please do your own research.

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 Value Appreciation vs USD Gain

When are crypto gains taxable in the U.S.? This is the big question. Virtual (cryptographic) currency is legally defined as property. When you convert the crypto coin (property) format into US dollar format, the transaction becomes taxable. Core Concept: when property gains are converted into the USD (dollar) format they become taxable.

Example: because the U.S. government has jurisdiction over dollars, dollar gains are taxed the same way as real estate (property). So when you sell (convert) your BTC (bitcoin-crypto) into the USD format, this is considered a capital gain. Core Concept: However, trading between cryptographic coins, for example, trading LTC to BTC, is an appreciation of value. There is no change in format to the USD. I.e. You have NOT changed format from property (crypto) to US dollars. 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 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

The way you structure your LLC matters. Which IRS forms are you filing and why? Filing a 1040 for your LLC removes your default tax deferred status (by your action, 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.