is calling I am trying to send you a message and ask for your help we want to stimulate the economy we want our businesses to grow and we have this new tax bill in front of us that you've proposed and and frankly everybody I I don't want to be republican or democrat in this conversation if the government proposes a tax bill I want to break it down and figure out if it's a good idea for Main Street for us middle-income America small business owners is this going to help us or hurt us I don't care if it's Trump that's proposing it or Biden proposing it and you know what this bill is creating red meat for everybody to fight about the Democrats are like oh we need to tax the rich and the Republicans are like you're taxing the rich too much and and it gets polarizing so I want all of you to know I'm going to talk right in the middle to all of you about basically what this bill is about now there's a lot in here of new tax increases and ways to spend money some make sense I get that let's put money where it needs to go but to just increase taxes arbitrarily for the wealthy because they need to pay more is that going to help us well I'm going to break it down and I want you to vote here in just a moment so I want to just lay forth the five biggest tax changes in this bill that would impact all of us we may think oh it's just going to you know hit the rich well we'll see so I'm going to hit five of these changes or tax incentives that the Biden Administration is proposing and then I want to break it down with two scenarios and I'm going to let you vote and you get to decide and we're going to send this message send it to the government help us we are we are dying here inflation and increasing costs are killing us what do we do so here's the five biggest changes in this bill number one we are going to increase capital gains rates which may be as Max of 20% for the for the wealthy and then we've got the tax cuts I mean the ACA for cares Act tax on that top of that and state taxes and all that but federally has been captur only at 20% now the Biden Administration says it needs to go to 39.6 so 40% tax rate on capital gains the highest increase in capital gains taxes in 102 years okay so that's number one number two we're going to tax any unrealized gains in cryptocurrency in real estate in small business in stocks if you've got gains and you're just sitting on them and you're like I don't want to sell yet I'm not ready to sell my stock and Tesla well you're going to get taxed at a certain income level if you make too much money you're going to get taxed a 25% rate on all of these unrealized gains because you're not willing to sell we don't get to tax you so we're going to tax you anyway now there's some constitutional arguments there but that's point number two number three 1031 exchanges you Real Estate Investors out there you love the 1031 I love the 1031 you can buy I'm sorry you can sell a property and buy a new one of equal or greater value you can sell a property and uh buy a new property and then sell the other one you can exchange you can exchange real estate and pay no tax as long as you reinvest that money into real estate it helps stimulate the real estate economy which could bring down interest rates which we all would love well if you make too much money no 1031 exchanges what no 1031 and the limit is not as high as you think number four no wash sales for crypto Traders now if you're trading cryptocurrency and you have a big loss you're allowed to take that loss and redeploy your money into more cryptocurrency you can't do that with stocks you can't sell a stock take a loss and buy the stock the next day but currently you can do that with cryptocurrency and what happens you you have to pay tax when you have a gain and you get this loss you can Harvest this loss and move forward and buy more cryptocurrency that's off the table that's number four and number five no stepped up basis when you die if you have property worth more than $5 million so let's say you have the family farm this worth $10 million this landlock beautiful property and Grandpa and Grandma pass away and they have now they get to pass this land onto the family normally you get a Steed up basis to fair market value and there's a state tax if the property or the mom and dad's wealth is more than approximately 13 14 million now but the property gets stepped up and then the family can sell the property taxfree and that's a great thing because estate tax makes up the difference well not anymore there's no stepped up basis so the family has to go sell the farm to pay the tax now some of you may not be rich but you've got family property family land or cabin a farm or something that you might inherit and now you've got to sell it to pay the tax just those five Provisions are in the Biden administration's terminology targeting the wealthy okay fair enough those five big deal big tax hikes so what's that do now I've got two considerations I want all of you to think about and then I want you to vote and then I'm here to answer any tax and legal question you have if you're trying to write off some uh expenses in your business if you're trying to incorporate you're should I set up an LLC or an escort how do I pay my kids how do I make money on Main Street America and save taxes and build it I want to answer your questions but here's the two scenarios all right let's think about this inflation is a tax on a hidden tax on middle- inome America when inflation goes up costs go up how many of you have experienced an increase in your food cost just at the grocery store and with eating out at least a 25% increase for many people so if you normally would spend 1,500 a month on food and groceries now you're spending 2,000 a month on food and groceries your costs went up because inflation went up the only way we get inflation down is to stimulate the economy and get more money in the system so the costs settle back down so if you're in middle-income America you're like I'm paying this hidden tax this increased cost in my life and who does it hit the hardest the middle income so let's say you make $55,000 a month and your food cost just went up by $500,500 to 2,000 so of your monthly budget of $5,000 you just had a food increase of 500 that's a 10% increase in costs to your family budget well if someone else that would be considered high income is making 20,000 a month and their food cost goes up by $500 that's only a two and a half percent a 0.02% I should say 0.025% increase in their overall budget that $500 hurts a lot less for someone making 20 grand than someone making five grand so do we really want to take the wealthy's money and put it give it to the government or do we want them to go out and continue to build business and buy real estate and try to flip property and and help real estate values grow and see interest rates come down or no just have them send their money to the government okay now second concept here this is an important one tell me what you think here so let's say you got this rich person and you're like they should they should pay more damn it they should pay more they make a lot of money they're driving a ni nice car they should pay more okay Fair Point that's okay let's live with that and let's say that increase taxes $10,000 a year we want to change the equation here with the proposal the White House is thrown out and we're going to increase their taxes by just $10,000 all right so would you rather have that $10,000 go to the government and they're going to spend on what they think is best foreign policy who knows what maybe it would help in some area but I'm going to I'm middle-income America and remember my costs are going up and so I would rather have that rich person give 10 grand to the government and and the government will help me they'll help me or do I want that rich person to take that 10 grand and help Main Street stimulate their own business maybe buy more real estate build their business hire a new employee take that 10,000 and build that business so that more people can do business with that businessto business relationship do we want to increase that with the $10,000 or give it to the government and they can choose what they think to spend it on to help middle- income America folks that is the decision before you I'm not going to tell you how to vote you get to vote how you want to that's the beauty of this wonderful country we live in with all the problems and the messes and the protests and all that we still get a vote and so we can choose do we want this money that would otherwise be invested back into the corporations and the economy or do we want to give it to the government who's already upside down paying interest on massive amounts of debt because they've overspent or again stimulate Main Street so you get to choose so here's your vote and then we're going to send this result and we'll email it to the White House they've got an email that they take these emails and we're going to tell them the results of our live today so you get a vote send the money to the government so you get to type government and whatever portal you're watching here on YouTube Instagram Facebook put government or Main Street where do you want that extra tax to go because if the White House gets this vote we can give the money to the government they'll spend it trust me if I give money to someone they're going to find a way to spend it or I can take that money and help grow my business or another business on Main Street building a busino business relationship and that's what's before us it's that easy do you want to tax people more or put that money to work in our economy reduce inflation reduce costs and build wealth me giving money to the government doesn't build wealth me putting it into the economy builds I think everybody's wealth including mine I want to grow it okay so we're going to wait to see the results here now before we get to your questions and we can talk about the tax bill we can talk about your small business I'm here for you I love small businesses and saving taxes I'm an attorney CPA bestselling author podcaster I've been helping business owners for 20 plus years and done over 10,000 consultations I hope I could help answer your question about your small business but first I have my tax and legal Workshop I do it twice a year it's coming up in less than six weeks in June in Salt Lake City it will be a virtual broadcast as well but in person we are going to be off the hook this is a bunch of accountants small business owners attorneys financial advisers all networking together the biggest tax illegal Conference of the year in June Salt Lake City now you can go to tax illegal 360.com and I have a bonus for you today this is your bonus you can throw it in there into the shopping cart and it is 360 Plus One 360 plus one and the number one we'll put that down in the chat for everybody if you use that at checkout you can bring a friend for half price bring a friend your business partner bring a child bring a parent it's a tax right off because you're going to learn about the most kickass Tax Strategies for small business and investing in America right now we have 24 breakout sessions with over 10 different speakers and a main stage that's going to blow your mind if you don't save 10 times this ticket cost in taxes this year then I failed and I've given money back maybe once in my career at this small business conference because we save you so much money you're going to love this so get to tax illegal 360 and use 360 plus P1 the number one at checkout and get your friend business partner spouse or child parent on the ticket see you in Salt Lake all right so I'm excited for some questions here I've got Zach and Dylan here in the studio how's our votes going are We Are we more for the give the government the money or more for Main Street I'm dying to know who would have thought it's almost a majority if not 100% I don't think I've seen one person say government every single message has said Main Street on both Instagram all the platforms wow look at that it actually it actually makes me kind of emotional because I freaking love America and I love small business and I love Main Street and people we need the government the government's not bad but we the government needs to be on a budget we just can't keep giving them more money I want to use that money for you and for me to build wealth and get inflation in check and let the government do what it's good at but building my wealth the government's not good at that I'd rather use that money so wow 100% all for Main Street loving Main Street all right do we have a good question here I got my whiteboard ready to go I got my Rockstar we do so the first question coming up for today is from Judah K on YouTube and they ask when would you advise typically switching from a soul prop LS LLC or an l LP to an esort I love it so converting from an LLC to an S corporation is a very very important step for every small business owner can we go to the Whiteboard I want to show kind of what this looks like now some of you may know I have uh what I call the trifecta and the trifecta makes sense of this structure so all of you if you were to meet with one of my tax lawyers and we're helping small business owners every day I've been doing this for years so please know I've got a lot of confidence that this is a diagram that just makes sense you're going to put your operations over on the left and your assets over on the right now you can use an LLC on both sides I might have an LLC over here for my little let's say uh Consulting business I do consulting or maybe you sell a product or you've got a little something online okay so you have this Revenue coming into your little LLC and you're taxing it as a so proprietorship on a schedule C very very common so this is your side hustle over here we'll put side hustle okay now over on the right side it' be where we put our real estate so we might have rental property over here and these rentals are going to go into an LLC as well we might have multiple llc's we'll build those up in the future we're not sure when so we've got our assets over on this side with an umbrella of protection and our small business over here well the problem is is this LLC pays self-employment tax of almost 15.3 3% well 15.3% on the first 140k or more uh and then it jogs down and whatever but this tax the self-employment tax is a big one but if I can convert over to an ESC Corp then I can minimize that tax and so I'll pay this FICA this tax we hate to pay I'm going to pay this FICA over here but then I can push all of my net income down here with no self-employment tax and no corporate tax now everybody this conversion is absolutely critical at the right dollar amount and every small business owner Dennis doctor landscaper restaurant owner online marketer influencer we're going to make this transition so we can save on this FICA we don't want to pay it on every dollar you want to convert to an escorp when you're netting around $50,000 or more I'm going to say 40 to 50,000 so when you're netting bringing home after your expens around $33,000 a month we want to make that conversion now that conversion is pretty easy to make in fact though it's very expensive our office charges $200 news alert it is very easy to convert your LLC to an es Corp and we can even backdate it to 1124 even though we're now in the month of May so talk with the tax adviser I've got a whole network at Mark jer.com the taxpro network of hundreds of accountants around the country that speak Mark Coler they can get on a phone call with you in your area or in your region and I don't take any money from you and them in that relationship you need a tax adviser helping your small business that loves Main Street as well make the conversion to the ESC Corp when the time is right and you can backdate it for the whole year so great question be on top of it you're on the right track next question Zach yep next one is from Tony Martinez over on YouTube and he asks wasn't there also a proposal to minate Roth conversions oh yes so um last year was 2.0 the ACT 2.0 um president the Biden administration had proposed a bill to to Really amongst other things the bill passed we were able to help Lobby against this one particular provision uh but the Roth provision was uh and it was much more pushed forward last year that we're going to limit the size of Roth accounts and the ability for people to convert their traditional money into roths so if you made too much money you can't play in the Roth party luckily all those Provisions were stopped it's nothing new uh the the Democrats have proposed this before and Biden threw that into this tax proposal again now here's the thing um Social Security it's great I'm I'm going to live large on Social Security right I know it's going to be there and it's going to pay out big maybe right we got to be careful with that now I'm not propos I'm not predicting that Social Security is going to fall apart it's not it's a main state in America but does it pay out what we really need for retirement shouldn't we be helping small business owners build their own 401K their solo 401K their Roth IRA investing in real estate and gold and silver and small business you don't have to put everything in Wall Street a 401k is not just stocks it can own real estate and a note you can invest your 401k in what you know so I talk about that a lot on my podcast on on my YouTube Channel please get over there if that's a New Concept you haven't heard of self-directing so the bill had some poison pills going after the Roth IRA but again we want to run like that's the plague it is not good for retirement accounts for people we want to encourage people to build their own retirement and not just solely rely on Social Security again do I want to give 10 grand to Social Security or put 10 grand in someone's Roth IRA and help them build it that's the concept rich or poor it's the same concept all right next question all right next question also from YouTube from Alexi he asks can I lend money from my Roth self-directed IRA to the LLC which I'm personally owner of 33% of and that LLC buys rental property the answer based on the facts you gave me is yes now let's go to the Whiteboard and explain what Alexi is doing so if we go back to our Trifecta we're going to divide this side in half you might have rental property in your own LLC that's owned by your trust this is your revocable living trust you also might have an LLC over here that owns a restaurant so let's say Alexi owns oh no no he told us what they're doing sorry he is buying and selling oh I've got to get my little eraser here going okay my Eraser is not working so I'm just going to write it right here um they are buying and selling real estate okay so fix and flips that's what they're doing here over on the right side we're renting over here we're fixing and flipping okay so that's Alexi's business now in between all this he has a Roth IRA and this Roth IRA has some money in it and he's saying can I lend my own WTH instead of buying stock in Microsoft I don't want to I don't want to buy Microsoft stock maybe I want to loan money to this business and get a 8 to 10% return on my money and I know I'm going to make more interest paying back to myself than investing in the stock market can you do that with your Roth IRA the answer is yes but your ownership percentage is critical in order to make this a non-prohibited transaction you have to own less than 50% and the closer you are to zero the better because we've got the 50 Shades of Gray going on here in this deal we if you're at 33% ownership you're in a really safe position but now this 66% cannot be family it cannot be your spouse it cannot be your child or a parent those are prohibited parties the IRS doesn't trust you to be fair so as long as it's none of those people it's a third party that owns the other 66% you can do this loan all day long and if any of you are loving this get over to directed ira.com the fastest growing highest rated five-star rated Trust Company custodian in the country so ww. directed ira.com we have webinars there uh and all the tools you need to start self-directing your WTH and investing in what you know best all right next question all right next question is over from Instagram from book Works accounting and they ask what are the income limits for the cap gains 1031 proposed changes my understanding is if the C if the 1031 is it's either over a million or 5 million let me see right here um I've got it the okay I want to make sure I answer this I don't you guys think um okay someone in chat want to help me out here everybody is I know there's a number of uh Tax Professionals in my network that are watching today and oh here it is uh the light kind exchange oh it actually in my summary and this is literally from the White House of course are not going to share some of these little tidbits I'm sorry they just don't they keep you on a need to know basis this is the fact sheet from President Biden's office um does not give it the the uh break down my understanding in the last year's bill was it was at a million dollars so any 1031 exchange that was over a million dollars of capital gain you could only 1031 up to a million and the rest you had to pay tax on that was in the prior proposal and we've seen all sorts of viations on this if anybody has the detail on the uh 1031 limit uh before it's taxed please put that in the chat for everyone else and I'll and I'll share it if you see that Zach um all right let's move over to our next question all right next question is from hero over on YouTube he asks do you have any reservations on series LLC in Texas I currently purchased a rental property and plan to buy another property by the end of the year do you recommend it I love it Horatio great question now everybody the series LLC is a really cool type of LLC it's only offered in about 15 to 17 States more than more states are adopting this type of LLC but doesn't a pitcher say a thousand words that's right we got to go back to our Trifecta so if we're over here and we're going to be investing in assets and we're going to buy rental property here's what her ratio is up against he could open two llc's in Texas which is one of the states that allow for this and he could open two llc's and go buy two rental properties now why would he do that well it's because he wants protection he doesn't want both of his eggs in the same basket if something goes wrong on this property we want a wall a firewall to get over to this one well a lot of people are like well I don't want to set up two llc's Mark that's expensive so what Texas did along with these other states to say well you can set up one LLC have one LLC uh to help own all the property file one tax return keep cost down and we're going to let you set up as many subseries llc's as you want at no extra cost you can have these other little llc's and they all feed into 100% down into the parent so this is called a series LLC and series llc's save administrative costs I really like the series LLC any reservation here's the reservation if you're only going to own two properties I'd probably both put them in the same damn LLC I wouldn't go for an extra series but if your goal is to buy four to eight properties then doing a series LLC is going to allow you to expand much more affordably and create barriers or buckets for all the different properties um if you're not sure which states have these I've got articles on my website on this I also have a calendar my tax and legal calendar uh and workbook Journal is available on my website and it has a list of all the states that have series llc's and special protection llc's get over and check that out but Horatio if you're going to buy more than two properties in the next couple years and you're going to keep investing in Texas I'd go series LLC no reservation I think it makes sense all right next question coming up is from Quinton also on YouTube he asks if you already have an escort can you add on the other parts of the trifecta to my plan you add to it what can you add on the other parts of the trifecta to my plan oh yes so let's go to the Whiteboard so let's say Quinton here has an escort and uh uh let's say he's uh running a landscaping business just any type of service business would work heck you could be a plastic surgeon but you've got this uh escorp and you're saying well Mark I haven't done my trust yet I don't have a solo 401K yet and I don't have have my WTH yet but I'm on track this year I'm freaking going to do it oh and I want to buy a rental this year I'm really trying to scale up I'm keeping my cost down I'm really trying to build wealth and I want to build my Trifecta well if you already have the es Corp check and you're doing your W2 and your K1 and you're saving on FICA which is what we talked about earlier that's great and your es Corp is going to be owned 100% by your trust so when you add the trust second step that's cool what I do is a stock transfer agreement and we transfer the stock of the escort from you to the trust so you are no longer the owner of the property the owner becomes the trust so you can add that in step two then you're like oh I'm going to add a an LLC okay third step well now that I have my trust my trust can open that LLC and go buy my cute little rental property remember the es Corp has nothing to do with this property over here the es Corp is your operations I want assets over here do not put assets over on this side that's a big no no then you go oh well I'm making money I want to fund a solo 401K I want to fund a Roth IRA I want to fund a health savings account and then I'm going to take those and go form an LLC and I'm going to go buy some gold I'm going to go buy some crypto I might go buy another rental property you can do that all over here in the fourth step so you can add these other steps down the road just because you started with the es Corp is not a bad thing we're just going to add these other options as you expand all right all right looks like jority of comments are coming from YouTube today the next one is from pomad B budoir I'm sorry if I mispronounced that uh do we need to open separate llc's to buy rental properties in different states o great question um now everyone here too don't forget to register for tax and legal 360 do you know every question that's already been asked today we have a 50-minute class that's continuing education certificate for a CPA or an attorney or an enrolled agent when you come to the event you're going to be learning these topics taught by a host of speakers including myself s corporations putting the kids on payroll where how to set up the right LLC series llc's asset protection that's a 3-day Workshop people all the T the VIP ticket is the only one more than $1,000 you can have a general admission ticket for 500 bucks and you can come for three days and learn so much that's going to save you thousands and network with accounts that know what the hell they're doing so I think you would love it so in our diagram here we're going to go bu real estate you've got multiple options I'm going to give you this picture so let's let's kind of see this is the asset side right and we're going to expand this I want to blow this part up so we're going to blow this up and make it even bigger so let's say you've got asset side see over here is the op side okay your first option is you could set up one LLC and register it in three different states you might register it in California Arizona and Florida and you're going to put a property from Florida a property from Arizona and a prop property from California all in the same LLC you can do that that might be the right thing to do the these assets don't have a lot of equity they make sense to be in this way and you have all your eggs in one basket but you go oh my gosh no my Arizona is an Airbnb and my California is a ski in ski out up in Lake Tahoe and my Florida property oh that's a low income property it's got highrisk tenants well maybe we should put these in different baskets so your option two is oh I'll set up a California LLC I'll set up an Arizon LLC and I'll set up a Florida LLC and I'm just going to have a different bucket for each property you may say well Mark which one's better it depends this is why we have three pargal do we fix my nedi set up online I won't use the name I use there sometimes so we have we we clean up more entities than sometimes we set up because people just go online and click click click and they're like oh what am I doing please get a consult with a real I'll I'll give you a website here where we can do that but anyway option two is you could set up three different llc's in three different states and it's not an issue of quantity it's an issue of quality because these three properties may work all in the same LLC this one it may require it now your third option is guess what it's the series LLC so I could have an LLC with little subs and if I'm investing in states that allow for the series LLC then I can have one LLC and just set up the subs in three different states so I'm saving the money of doing option two but it depends on what states you're investing in the last option is the level we graduate to with our clients that have really built some real estate Equity maybe a million dollars or more now we're going to set up a holding company it's called a cop LLC we're going to use States like Wyoming Ohio and others that really have great laws don't think it's Nevada and Delaware those are for big corporations so we're going to set up the right cope LLC and then go set up other llc's maybe in California maybe in Florida maybe in Arizona but we're going to do this because you have so much value we need two layers of protection now this is an advanced asset protection strategy and that's going to be something again at 360 we're going to teach on and I've got this in my books you can get over to Amazon and type Mark J ker you're going to see all the books in here and th hundreds if not thousands combined festar ratings please get over and check them out all right maybe a few more questions sure thing so the next one is from nurse vest they ask should I buy land inside or outside a self-directed IRA my LLC will buy it and and my LLC is what the last part my LLC is going to buy buy okay so all right everybody the question is I'm going to restate this should I buy real estate inside my IRA or buy it in my own name now what would that look like in the trifecta it would look like this you might have an LLC that's owned by your Roth your partner's Roth your spouse or kids and then you have another LLC that's owned by you your trust okay guess what they both have pros and cons so the answer is the answer is both I want you to buy property in both buckets the bucket that you own personally is going to give you pass through losses and depreciation and cost segregation are you doing self rentals or airbnbs or long-term rentals or commercial rentals I don't know what floats your boat buy rentals in your own name to get special tax benefits but when you go to sell you might pay tax unless you do a 1031 exchange oh and watch out if you make too much on that 1031 exchange you might not be able to do it or I can come over on the other side side is it Andor and I buy rental properties inside my retirement account so my Roth IRA is buying rentals and if I go to sell those properties I'm going to pay zero tax well I don't get the depreciation in ceg and that Real Estate Network they told me not to put real estate in my retirement account because I don't get the pass through losses yeah but you don't pay tax when you sell the damn thing either see they each have benefits pros and cons do both I do both I own rental property in my retirement accounts and I own rental property my own name they're both great it's not an either or next question all right we'll go ahead and do two more questions here so Crystal Blue asks does it make sense to use the same LLC for two related businesses one long arm quilting services and two long arm machine dealer or should I have separate llc's well so this question if we go over to our Trifecta takes us over to the operation side and the option on the table is I'm going to have two llc's for two separate businesses now in this example what I'm reading into is that Crystal Blue owns 100% of both of these okay that's cool but you've got two bank accounts two tax returns two entities two operations I don't know if it's worth that extra administrative cost now if you have an exit strategy where you're saying oh the quilting business I'm selling that in the next year I need it to be its own business okay or this one over here the machine business oh I'm going to bring on a partner soon and I'm going to carve up my percentage okay then you're going to want to keep them separate but anybody out here watching if you have multiple businesses I my goal is to keep it efficient and bring it together me Mark ker I'll be transparent I don't like you look on State website I have one escorp in my life that's it I can have as many ESC Corps as I want me little Mark ker over here I have one freaking escort now it may own a percentage of this company and a percentage of this company and a percentage of that company and this URL and this trademark and da d d d da hell I want my es Corp generating money in multiple areas but they all flow into one company so Crystal Blue what I would if you were to meet with one of my attorneys oh I told you I'll get you a website here give me two seconds is I might take these two llc's and merge them into and it's a taxfree reorg very affordable to do is I'm going to get rid of this one and bring it over here and make this one a subsidiary and I can do that with 500 to $750 very affordably with one of our paralegals and make this an owner of this LLC here then you can do your S election if you need to and you're going to save taxes as well so I would get rid of the left and right and create a parent sub instead of brother sister that that's the way I'd go Crystal boo now everybody I want to give you the website to go to if you want to consult with a real tax lawyer that knows Main Street America that's affordable no Big5 or $110,000 package or more you can just hire him per hour or say I need an entity I need a trust go to uh ww. K lawyers.com and when you get over there you can choose from a variety of services it's a free phone call to talk to one of our new client administrators and do a discovery call it's not going to cost anything just see what's out there before you go on the web and just start clicking and buying things get over there and and check it out I think it'll be a big help to you and and very very important all right next question all right this one is a two-parter it's from Harel over on YouTube so I have a solo 401k and an old 401k from a previous employer the current employer which is a thousand people firm can accept Investments is it possible to convert old 401K into their solo 401k and then invest that into the new employees investment and and then what was the last part uh can they invest that converted one into the new employees investment new employees investment I don't know what that means so their current employer uh they accept Investments okay so there's this let's go to the Whiteboard so here's what I'm seeing we have a third-party company that you don't own and you work for this company and get a W2 your W2 comes down here onto your 104 all right and this W2 you're also deferring over here to your you're calling it your old 401K I'm going to call it your current 401K because you still get a W2 and you still work for this employer you may seem old to you because you've had it a while but I would recommend you use the word current 401K meanwhile you've got an sccp or an LLC and you've set up a solo 401K so you're investing this like crazy and you're investing in what you love and I would think you're self-directing this meaning you're investing in anything you want not just the options at work but you've got this money that's pulled up over here in this bucket and you're like Mark I want to move that money over here so I can invest it in this company first of all I think you're you may be investing way too much putting your eggs in this company's basket over here but if that's what you want to do uh you could with take solo 401K money and invest in your company you work for there's that's not prohibited but can you roll we' call this a rollover can you roll that money over to your solo 401K the answer is no while you're still working so if you're still employed for the big company getting a W2 you cannot roll this money to your solo it is stuck there until you quit so once you quit you unlock this old 401K and you can move it over here but as long as you're employed uh you're stuck with that whatever options they give you which is going to be normal Wall Street stuff so uh get a consult with one of my tax lawyers at kkos lawyers.com and they can walk you through your options so that you know and you can just book one hour Hell whatever you pay for an hour we want to save you 10 times that helping get you the right structure and plan so keep keep uh on track I like where you're headed all right last question you got a couple more we feeling it we we do have a couple more oh and how's the voting going it's it's Main Street it's still Main Street I have not I seriously have not seen more you haven't seen one government not one all right I love it wow so exciting right well there was a quick followup to the one we just did he goes does the answer change if I convert to an IRA first and then invest well here let's go back to the board the SEC the follow-up was well I won't roll over to the 401K I'll just put it over here in an IRA and then I'll go invest it is very unlikely they're going to let you roll out any money to an IRA but sometimes you can based on your vesting how long you've been with the company sometimes they let you roll out your contributions but they're not going to let you roll out any gains or employee match employer matches so whether you're trying to put it in the solo or whether you're trying to put it into an IRA you've got to go to your 401k administrator and ask what your options are it's not tax law that matters it's who the hell sold your company the 401K that 401k document is going to dictate what you get to do so uh talk to them see what they'll allow you're going to want to look at vesting schedules and um and what you're allowed to roll out and if you want to roll to an IRA or a solo once they allow you to roll it out it can go wherever the hell you want but while you're still employed it's very very rare So Good Luck Good Luck all right next question all right we'll go ahead and do this one um from Jay on YouTube can you trade Forex in parenthesis leveraged in a self-directed IRA yes you can Forex trade uh with leverage and a self-directed IRA now you will pay what's called ubit uh it's unrelated debt financed income so whenever you trade on margin inside a retirement account there is a tax and and here's the concept if you want to take your Roth IRA and go buy $110,000 worth of Tesla stock and you make and it doubles there's no tax you took your Roth or your 401k and bought stock you could go buy real estate for 100 grand real estate goes up to 200 Grand you pay no tax but once you use debt the government's like whoa whoa whoa you can invest your 10 grand or 100 Grand however you want but if you go borrow money like Forex on margin or buy real estate with a loan if you're going to have debt we want to tax the portion of money you're making related to the debt so if you're 50% leveraged and you make 10 grand or 100 Grand then we're going to tax 50% of your profit because that was profit you earned based on debt not your money so that's called unrelated debt financed income so you made income finan by debt and the and we as a society has said we're going to tax you on that I'm sorry your own money no tax that's cool but on the debt Finance so you can Forex trade your little heart out I love it just be careful of using a margin account and I'll tell you be careful with margin accounts anyway be careful all right next question all right we'll go ahead and wrap it up here with Arnold's question um he asks I'm mining crypto on my cell phone what is the best strategy for the tax next year wow uh if you're mining crypto on your phone that's one hell of a phone usually have to have a pretty damn good video card on a on a PC I can't even mine here on my MacBook uh I don't have the power for that I don't know what you're doing on your phone you may be managing your nice hash account on your phone but there's got to be a video card somewhere in an asset somewhere and Mining okay I know mining I'm mining I've got a mining rig but I don't mine on my phone I can track it on my phone but I got a I got a motherboard with seven video cards Mining away so so I'm I'll leave that alone for the moment I don't care if it's on a phone or whatever everybody but if you're mining crypto which is a cool strategy and by the way you're not actually out there with a pick and ax looking for cryptocurrency you're helping verify transaction on typically the salana or ethereum blockchain and you're getting paid in Bitcoin that's called mining you're providing a service so here's the point everybody if you're going to be mining crypto or staking could even apply you're earning money you're not investing you're earning when you're doing crypto mining that's ordinary income and you're going to pay self-employment tax on that I've had clients form an S corporation for their mining rigs because they're making so much so you really need a consult with one of the tax lawyers in my office I would recommend Darren or max they're both a very very skilled and certified in crypto taxation so get an appointment with Darren or Max because you're going to pay more tax on that crypto mining than you know and paying them for an hour to give you a plan of what to do is good planning people the rich get richer when they plan and understand their tax strategy saving taxes is fun did I really just say that it is it is so fun to save money you know it's easier to save money than make money so please get to the tax and legal 360 Workshop use the 360 plus1 code and bring a friend at half off I'm going to be there all three days we have a huge party on Friday night we've got an amazing schedule of speakers and workshops over 30 topics and I want to say thank you for listening thank you for being on Main Street together we're all trying to make the economy better when we work hard and we invest our money in real estate and small business we're making the B the America better and we're reducing inflation we're reducing the costs of all of our living costs that's what we need to do I let the government do their thing get on a budget government but don't take any more of my money lower class middle class upper class I do not care stay on a budget let all of us use our money to make the economy great and when we make the economy awesome it benefits all of us Republican or Democrat it doesn't matter we're all all trying to make Main Street better so thanks everybody keep living the dream it's real it's hard work I was up late working last night I'll be up late working tonight because I believe in my my dream my purpose my vision and I encourage you to do the same don't give up it's hard but it's your dream no one else's and you could
