Author: Michael Lively

Cryptocurrency Business Part 3: Three Legal Entities

Posted by | Oct 28, 2021 | , , , , , , |

Cryptocurrency Business Taxes: Know What You Don’t Know – 3 Rules of Three Part 3: Three Legal Entities   Picking the INCORRECT type of legal entity to do your cryptocurrency business could have a devastating impact on the taxes you pay in that activity. Similarly, if you do it the right way, it can have a huge benefit to you in your after-tax returns.  Stay tuned and you will see how you can utilize the correct business formation structure to maximize your after-tax crypto returns.     This is Kelly Coughlin, CPA and CEO of EverydayCPA. You saw in part 1 the three ways to generate profits and potentially taxes in the cryptocurrency market: 1) buy, hold and sell; 2) buy other goods and services or other currency; and 3) perform mathematical equations for a fee to build the Blockchain.   In part 2 you saw the three types of accounts you can utilize for your crypto business, a regular cash taxable investment account; a 401k or traditional IRA; or a Roth IRA.    Now, in Part 3 of our five-part series “Cryptocurrency Taxes: Know What You Don’t Know – 3 Rules of Three,” we will cover the THIRD rule of 3…the 3 types of legal entities in which you can implement your crypto business…and this connects directly to the 3 TYPES of crypto income you intend to generate....

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Cryptocurrency Part 2: Three Types of Crypto Accounts

Posted by | Oct 28, 2021 | , , , , |

Cryptocurrency Taxes: Know What You Don’t Know – 3 Rules of Three Part 2: Three Types of Crypto Accounts Hopefully, if you have decided to get into the cryptocurrency business, you have done so for the purpose of making a lot of money…and by that, I mean a lot of PROFITS. Of course, anytime you have a lot of profits, you will have the IRS and other tax agencies circling like sharks, looking to claim their share of those profits.  Knowing the 3 types of crypto accounts, and when to utilize each, will help you minimize the damage at tax time! This is Kelly Coughlin, CPA and CEO of EverydayCPA. This is Part 2 of the five-part series CRYPTOCURRENCY TAXES: Know What You Don’t Know – 3 Rules of Three. In this episode, we are going to help you understand the three types of accounts that can be used in your cryptocurrency business. This will help you better understand how to keep the tax sharks from a feeding frenzy on your crypto profits. Taxman Targets Crypto Traders Tax agencies hear and see and smell current cryptocurrency business practices, and are targeting the easy prey: crypto traders who don’t care about the rules; crypto traders who don’t understand the rules; and crypto traders who think they know the rules but actually don’t know the rules…in other words, they don’t know...

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Cryptocurrency Taxes: 3 Sources of Income

Posted by | Oct 28, 2021 | , , , , , |

Cryptocurrency Taxes: Know What You Don’t Know – 3 Rules of Three Part 1: Three Sources of Income Winning in sports means scoring more points than your opponent. It’s a zero-sum game…one winner and one loser.  Winning in the business world is different. There are many winners and many losers. You don’t earn points, rather the goal is to make sure your revenues are greater than your expenses…to generate profits. This is Kelly Coughlin, CPA and CEO of EveryDayCPA. I like to play sports and I love business. And in both cases, I play to win. If you to want to win in the virtual currency business, you need to manage your BIGGEST expense… if you win…and this is taxes. This five-part series will show you how to win this game! This is a five-part series, “Cryptocurrency Taxes: Know What You Don’t Know – 3 Rules of Three”. I will help you see why three is your magic number. Let’s get right into it. Cryptocurrency: 3 Rules of Three There are 3 sources of revenue. There are 3 types of accounts. And there are 3 types of entities you need to use to minimize your taxes. Let’s start with Part 1: 3 sources of revenues and hopefully profits from these revenues.  I don’t need to tell you here that financial profits are being generated from cryptocurrency. So are losses....

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