Author: John Jay Singleton

Where Is The Crypto Tax?

March 3rd 2020

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It’s an accounting practice that ultimately determines what type of tax liability someone has. You have to realize that the people who wrote the tax laws created a way for themselves to pay little or no taxes. They also create policy, certifications and licensing for the tax professional so that people like you and me only perceive they are getting tax benefits. What they have really accomplished is tricking the average person into adopting and following certain habits so he will be forever stuck in this tax system.

Keep in mind that while most people are interested in these concepts for tax purposes, you will soon discovery that taxes are the least of your long list of risks to manage. What I’m describing here is far more comprehensive than just reducing or eliminating taxes, even though we’ll do that quite effectively.

Here are two videos that explain the concepts, and then this article is written to give you and your accountant references if you want to do more research. and

In this article, I use the term “Bitcoin” to include all crypto-graphic assets, tokens and coins. What changes in the law, in any country, now impose a tax on Bitcoin? There are no new laws imposing a tax on Bitcoin or any other crypto-graphic assets because they have been defined by every taxing authority to be “property”. This brings in all the laws regarding taxation of property and property rights for at least the last one-hundred years. In some counties it will be several hundred years. While most of this article pertains to the United States’ system of taxation, I am confident that the tax treatment you will discover in your own country will be identical.

This is also discussed in an interview with VJ at Rogue News here,

Keep in mind that the following concepts assume you have a “know-your-customer” (KYC) process for trading from dollars to Bitcoin, but that www, now has an application that allows anyone in the world, from any currency, to buy and sell in and out of Bitcoin Cash (BCH) without any KYC. If there is no KYC, you have total privacy and there is no need for the strategies I’m describing here, especially when it comes to smaller amounts of money such as living expenses.

The one exception to the “know-your-customer” relevance when using a business account with Caleb & Brown in Australia, no matter where the business is registered, Caleb & Brown does not report on U.S. citizens. Likewise there are no FinCEN or IRS disclosure requirements for U.S. citizens or U.S. registered businesses such as limited liability companies or limited partnership in the U.K. or Canada who have crypto accounts with Caleb & Brown. This type of account avoids many of the issues described in this article, so you will want to visit the registration website for Caleb & Brown for more information and how to get a 30% discount on trades at

The first concept you want to understand is that Bitcoin is defined as property. No new laws are needed, not for taxes or property rights in general. It was defined as property by the IRS in its Revenue Bulletin of 2014. This is very important. Before we continue, let me demonstrate how we are conditioned to believe something a certain way, that can change how we do things. People believe that they pay sales taxes at the grocery store. You look at your receipt and there is the itemization of what you paid, including sales tax on some items and then the total. Ask anyone and he will agree. However, what if we are simply seeing one of the operating costs of the grocery store, and that is being made to appear as if we are paying the tax when in fact the store is not only liable for the tax, but is in fact paying the tax?

Why isn’t the store’s cost for electricity for that hour pro-rated on the receipt, and how about its labor costs, why don’t those appear on the receipt also? Because the sales tax is what the store is paying as part of its operating costs and itemizing it on the receipt makes it appear that the customer is directly paying the sales tax, when in fact the store is responsible for paying this tax, the store is the taxpayer, not the customer. Why does this matter? Well, because if you believe you are the taxpayer in this scenario, you will more easily believe other things that are not true, but that can be used to manipulate your decisions and habits.

The second concept is that any tax will be paid in a government currency for the government agency imposing the tax, not Bitcoin itself. If you are not paying the tax in the thing being taxed, it’s not taxable. Only the gains you receive from the disposition of the asset are taxable in the government currency you are using to pay the tax.

If you pay tax because of a Bitcoin transaction, it’s likely because you disposed of the property to a third party, not another wallet address or under a different title, such as moving from a paper wallet to another wallet on an exchange where the account holder is “your” limited liability company or trust. The term “your” implies that you or your family are still intended to receive the benefits of the holding, you still haven’t sold or conveyed it (Bitcoin, etc.) to a third party.

The same is true for any property or property rights; great examples of this include stock and precious metals. You don’t pay a tax on gold just because the price increased.

I recently spoke with an accountant in Australia on these very concepts and she was so quick to talk about paying tax on gains until I asked her where the gains came from and she stated that “…well, eventually you will want to take profits because your holdings (cryptos) are worth more…”, and I said “Yes, but at the moment, just because the property is worth more, it doesn’t create a tax liability, correct? And she admitted that this was correct, but then asked, “so you’re just never going to take profits?” I explained that this wasn’t the question, the question is whether or not I have a taxable gain just because my property value increased against the currency and she had to concede that there was no tax liability at that point. I did not go on to explain how it’s possible to manage the property rights and retain a tax deferred status.

I think this is another really good analogy. If I buy Digibyte with my Bitcoin and then the prices change so that I buy back Bitcoin again with my Digibyte and now I have more Bitcoin, that would be “more money” or “profit”; however, it won’t be taxable until I price my “gain” in terms of the taxable currency, such as the dollar and then sell my new amount of Bitcoin for dollars. I would then have to at least report the transaction if it were in my name, and possibly pay tax on it. However, even though I now have more Bitcoin, I don’t have more dollars. If Bitcoin were truly taxable, I could pay a tax on the “profit” between Digibyte and Bitcoin, in Bitcoin, but I am not required by any law anywhere, to go out and obtain dollars somehow and then pay tax on the Bitcoin. As long as I do not dispose of the asset for the currency being taxed, there will be no tax.

The third concept to understand is that the exchanges are government agencies. Many of them have been delegated certain authorities to collect information and make reports on their account holders. This is not problem, it doesn’t change anything as far as whether or not an account holder would have a tax liability, it’s just important to know with whom we are dealing. The cleanest way to manage your purchases on these exchanges is to buy only stable coins on the exchanges, then move those to a wallet such as a BitFi or Atomic Wallet, which are decentralized and private wallets, and then allocate your stable coin into the crypto-coins you want. This way you will avoid creating any type of record of which coins you bought on which dates and it would render an audit summons for these records useless. When you take profits, use escrow, loan arrangements and reverse this process with the stable coin through your limited liability company as the account holder. This will create zero tax consequences or at least give you the full control over when and how much tax you want to pay.

My purpose in describing this is not to demonstrate how to hide your money and trick the system or even break the law, there is nothing illegal about keeping your privacy and managing your assets through an investment vehicle.

The fourth concept is understanding the process that would create a tax liability you did not have, if you don’t understand, and most accountants don’t understand. A report from a third party claiming you sold or disposed of your assets for dollars will eventually cause you to create a tax consequence when you may have had none. Let’s examine the audit process, paraphrasing from my interview on Pulse Wave Trading, February 5, 2020, beginning at the 22:00 minute mark1, …where you did not get a 1099, you’re going to get audited because what the agents will do is summon your exchange records, and then run the coin tracker software and generate a similar report as the 1099 that you didn’t receive from the exchange, and send you a deficiency notice and it will force you to either amend your tax return or get the notice corrected and tax court will not help you. You don’t want to amend your tax return, and/or file a petition in tax court, because then you will have created the tax liability from which you will not escape. Instead, you’ll have to request a determination letter on the statement in the deficiency notice.

Likewise, receiving a 1099-K or similar report regarding exchanges between coins, requires you to get the amounts corrected (minus those where you actually sold for taxable dollars) by making a formal request for determination letter with the Secretary of the Treasury.

The fifth concept is that there is no law requiring a taxpayer, in his own name, to invest in Bitcoin. The taxpayer can manage his property rights in the asset using a legal entity or other arrangement that does not create a tax consequence, or at least defers it. It’s a matter of restructuring property rights to legally avoid any tax in the same way you can legally protect your assets against creditors. No matter what plan you’re using to protect assets, the central strategy involves divesting (relinquishing) your exclusive rights to sell property. If you do not have the exclusive right to sell property, it cannot be taken from you by a creditor and if you do not have the exclusive right to receive income, it cannot be considered a gain or taxable to you. I think it’s safe to conclude that this is true in any jurisdiction, anywhere in the world.

Maybe this explanation sounds a bit cryptic, so it’s talk about specific methods and I’m sure you all will be able to relate to the ideas. If you’re a sole proprietor running a business, you have 100% liability for everything, taxes, creditors, all contracts and any other types of liability. If you are a partner in a partnership, depending on its terms, but generally, the general partner takes on all or most of the liability and the limited partner is only liable for the value of his contribution.

If I owe a tax on income that I receive, and if my brother owes a tax on his income, it’s easy to understand. Each of us is a taxpayer. But if both of us together own an undivided interest in income, together our association (my brother and I) cannot possibly owe a tax on that income, even though it would normally be taxable to either of us individually. This income would not be subject to any tax or even reporting until we claim that together (as an association of some type) we owe the tax or until each of us individually claims a portion of the income and we divide the interest between the two of us, and then report and claim the income for tax purposes.

In fact, depending on our individual situations, we may each have a different tax amount for the same income after it’s divided. This is easy to understand, but the most important concept here is that when my brother and I receive income together where the interest is not divided, if someday there would be a tax liability, it won’t be until we divide our interest and each claim the income individually. This is the reason why corporations can pay the tax after they spend all their money and why people pay taxes on wages before they receive them. People are being taxed on gross income and corporations are being taxed on net income. The difference is an accounting function, based upon ownership rights. Those rights are established by written agreements but also by the relationship and habits involved with managing the income and asset.

If my brother and I together form a partnership and register it with the state and obtain a tax number and then file a report at the end of a tax period, then we will have created a new taxpayer by making our partnership an income reporting, tax paying “person”. This is a very common example of what people do everyday around the world.

Consider the relationship between two brothers as an unincorporated association, until that relationship is registered with the state and a tax report is filed. It’s “unincorporated” because it’s private. Incorporated simply means included, and of course both brothers are included, but it’s a private association in which each brother is a member. This association excludes other individuals who are not brothers, only certain people can be in this association. We can also formalize this into what many people recognized as a limited liability company or limited partnership.

Everyone is a member of many types of associations, for example, because you had parents, whether or not they are still here, you are a member of a private association commonly known as a family. If you use a car, you are part of an association of people that use cars, it’s more common than you think. Let’s consider the example of a family with 7 members, the mom, dad, brother, sister, uncle, niece and mother-in-law. This is a private membership association (PMA) and it’s not an individual taxpayer. It could be if the family members used a common name, obtained a tax number and filed a tax return as a corporation or partnership or trust, but this is not required under any circumstance, and this is not what I’m suggesting of course.

While a limited partnership (LP) or limited liability company (LLC) can have a single owner or member, in the case of an LP you would have two designations, one as general partner and one as limited partner, but it’s nearly the same. The LLC or LP can be an account holder at the bank and pass-through all gains, profits or income (and losses) to the member owners. The standard accounting is to maintain a capital account for each member or partner and to close the books each tax period and pass all income through to the owner or member. But you can write the agreement so that there is an undivided interest (only one capital account) and the books are not closed until the members or owners make a decision to do so; in other words, it’s not automatically scheduled and it’s not required (even with only one member in the case of an LLC or one partner acting as both general partner and limited partner in the case of an LP). There is no law requiring anyone, at least that I’ve ever seen, to take profits ever, or on any specific date or within any specific time period. You decide how to manage the income and account for everyone’s interest.

The owner of your LP or your LLC can be your entire family, or any unincorporated association. Your family, or your PMA can own anything, including an entire company. The company can be a taxpayer or not, and it can obtain a tax number and receive income and then pass its income or gains onto the owner, the PMA. Because the PMA never became a taxpayer and because it’s not required to, any tax obligation would occur only when one or more of the association members was allocated his interest and then he would have to claim that in a tax return after receiving a disbursement from the association. The association itself, the PMA, would never been seen as a taxpayer.

It’s not like I alone created this idea in my head, this is the cornerstone of our entire system of taxation, and I believe it’s world-wide. In the United States, under the Bank Secrecy Act which was amended by The USA Patriot Act to require financial institutions to collect identifying information from account holders, this law excludes unincorporated associations from having to provide identifying documents or tax numbers. The PMA is immune from the anti-money laundering rules that apply to individuals (what you and I believe we are). To be more specific, the “know-your-customer” (KYC) rules only apply to (legal entity) account holders and signers for the account holder, they do not apply to attorneys, organizers of the account holders or unincorporated associations. This works much like a “back-door” for the people who actually write these laws and policies, but people like us are never apprised of these benefits by tax and legal professionals (even though they must know about them). This is further illustrated in my recently published Bank Secrecy Act Compliance Memorandum.

The ideal account holder would be limited liability company owned by a PMA or a limited partnership in which the general partner is a foreign entity or a PMA and the limited partner is the local resident, individual taxpayer. It creates a situation where third party tax reports are not able to create any tax consequence and the only time a tax would be paid is if a member of the PMA claimed his share, paid himself and filed the tax report. You will discover shortly that even this can be avoided, and legally of course.

Let’s review the first five concepts so far:

1. Bitcoin is defined as property.

2. If you are not paying the tax in the thing being taxed, it’s not taxable.

3. Exchanges are government agencies, so buy only stable coins on the exchanges, then move those to a wallet such as a BitFi or Atomic Wallet, which are decentralized and private wallets, and then allocate your stable coin into the crypto-coins you want.

4. A report from a third party claiming you sold or disposed of your assets for dollars will eventually cause you to create a tax consequence when you may have had none.

5. The taxpayer can manage his property rights in the asset using a legal entity or other arrangement that does not create a tax consequence, or at least defers it. if both of us together own an undivided interest in income, together our association (my brother and I) cannot possibly owe a tax on that income, even though it would normally be taxable to either of us individually.

The sixth concept I wanted to cover is where the IRS requests that you say “yes” or “no” on Form 1040 relating to having purchased any crypto-coins. My general recommendation is to tell the truth, because it will still not create a tax consequence, but you may be audited and you may receive an erroneous notice of deficiency. You may want to say “no” in any case, or at least say “no” if you did not get a 1099 from any exchange, just to avoid an audit. Otherwise, if you bought some in your name, say “yes”. If you are using a company such an an LLC, say “no”.

In the United States, we file an annual income tax known as a tax return on Form 1040. The latest change to the form asks if you bought any crypto-graphic currency for the previous tax period. Answering the question either way does not create any new tax consequence, however, it could create an audit if you answer “yes”. What many people have been doing is moving to managing their crypto portfolios via a limited liability company so that they can always answer “no”, but for the previous year, you still need to answer. The general practice is to answer “no” if you did not receive a tax report, such as Form 1099-K or something similar. If you answer “yes”, there is a good chance you will be audited and the Internal Revenue Service will run the “coin tracking” software and create their own version of the 1099 that you did not receive because your transactions did not exceed the threshold of 200 exchanges or $25,000 for the year.

In that case, you can correct the situation by obtaining a determination letter from the Secretary of the Treasury. Don’t expect your CPA to know how to do this, most do not and if they did know the procedure, they would not know how to write the legal memorandum, and even if they did, would be too afraid. Just be aware of these things, but there is no need to fear them.

The seventh concept I wanted to discuss is moving your personal crypto-coins into a newly formed company or trust such as an LLC or LP. It’s the same as for any property or property rights, you can sell them to a third party and that is a “disposition of assets”, but if you convey them from your name to a trust or company in which you retain the same beneficial interests, then the conveyance is not a disposition of assets, instead, it is considered a conveyance for estate planning purposes. My video about preparing the quit claim deed in the members area at explains this in greater detail.

You can convey property or property rights from your name to another organization or entity and if you retain the same beneficial interests, it’s not taxable. Additionally, just like there was no tax consequence when you bought the asset, investment or property, such as real estate, stock, precious metals, crypto-coins or other property, there is no tax consequence when you exchange it for another asset, such as to fund another investment.

Your accountant will insist that you have to report the transaction as a sale or disposition of an asset, and if you take that advice, he will be correct and you will likely pay a tax on the transaction; however, if you don’t take that advice and you move from one property to another, for whatever reason, and do not report it as a disposition, you will also be correct and you will avoid creating a tax liability. Keep in mind that as long as you do not realize a gain, meaning, you did not receive dollars in exchange for the property, then there is no disposition of assets, it does not matter if you price the assets in dollars or discuss the assets in terms of dollars, as long as you do not receive dollars in exchange for the property, it’s not taxable. Remember that the dollars are being taxed, not the property.

Let’s look at what the supreme court held in Eisner v. Macomber, 252 U.S. 189 (1920). It was a tax case before the United States Supreme Court that is notable for the following holdings:

A pro rata stock dividend where a shareholder received no actual cash or other property and retained the same proportionate share of ownership of the corporation as was held prior to the dividend by the shareholder was not income to the shareholder under the Sixteenth Amendment.

Ironically, a few years earlier the Supreme ruled that the Sixteenth Amendment did not give the government any more taxing authority than it already had. The case is Stanton v. Baltic Mining Co., 240 US 103, which held that “… the Sixteenth Amendment conferred no new power of taxation, but simply prohibited the previous complete and plenary power of income taxation possessed by Congress from the beginning from being taken out of the category of indirect taxation to which it inherently belonged“.

The eighth concept involves a review of the pertinent statute for filing tax returns. First of all, the statute alone is not the authority and does not compel someone to act, only the statute and regulation together impose a legal duty for which their can be penalties for failure to comply. But let’s just talk about the statute as it is the law. There is no statute that requires a limited liability or any other legal entity or any person to file a tax return; however, there are penalties for those who are required to file and do not file.

This is stated under Title 26 USC §7203 in which the single paragraph begins with “Any person required…” and goes on to state the penalties for willfully failing to file a tax return. Let’s back up for a moment and read the first three words of the statute, “Any person required…”. Remember, these were written by very smart people, where many well-educated professionals debated the language of the statute for months and months before adopting this final language which has been unchanged for about a hundred years. This language has withstood constitutional challenges of all sorts, and we still have it.

Let’s consider this at face value, “Any person required…”. Which person is required? Any person. Does that mean every man, woman and child on Earth? Does this include the deceased, how about the unborn, how about college students, what about the insane or invalid, or corporations, trusts and other organizations? Do parents have to file tax returns? What about grandma, even though she’s never worked at a job in her entire life? We know that people file tax returns, so do corporations. But who is any person required? Who is required? The statutes do not tell us, but I will tell you now how this works.

The person, meaning a corporation, or you and me, the person who actually files a tax return is the person required. And if you stop filing in most cases, you will have severe penalties and consequences; however, for those persons (people and corporations) who have never filed a tax return, there is no presumption of any requirement to file, so the IRS will never, never and I mean never question it. I know this after working with thousands of cases over 26 years and talking with IRS personnel, studying the IRS operations manuals, regulations and reading more case law that I care to admit.

I do not protest the U.S. or any tax system, I just believe that we should only pay the taxes that are owed and that we are under no duty to participate in any other scheme that would create a tax liability when we have other options. I believe this for no other reason than I have morality and I believe that my decisions about using money are moral and to allow an insane person such as a government or corporation have the money instead, is irresponsible. Look at what they have done so far, wars, public policies that destroy ancient social mores, imposing a currency on the people that always loses value, etc., etc. If we have to follow the law or a statute, let’s do that, but let’s not volunteer for more than absolutely necessary.

The ninth concept, and this will be brief, is that it takes at least several years of debate and public notices with public hearings to adopt new laws in most countries, especially when it concerns more taxation. I have yet to see any notices in the Federal Register or otherwise, calling for public debate on any new laws for crypto-graphic assets. Instead, we all witness one IRS Bulletin that defined crypto-graphic assets as “property” and a very misleading letter ruling that talk about “air drops”.

If there was a new law upon crypto-assets, we would have adopted it within the legislature, then it would have been codified into a statute, and then the agency responsible for assessing, imposing and collecting the tax would have promulgated very specific regulations, within the statutory framework, expressing how the crypto-assets would be taxed. The taxing regulations would include a section that set forth the type, kind or class of tax, and a tax table with rates of taxation and other requirements. There is no need to do that because the crypto-assets have simply been defined as property and the thing being taxed is the same as always, it’s the currency being taxed, not the property.

The tenth concept involves what most people really want to talk about. They want to know how to take their profits and retain the tax deferment, that is, move their new windfall into another asset while keeping all of the new principal.

This involves using escrow to buy your next asset such as real estate with Bitcoin; for example, you can use escrow to buy anything, and we all probably have used escrow before when we bought a house or used eBay or PayPal to buy or sell something. But let’s just use real estate as a very common example. I want to take my new $10,000,000 worth of Bitcoin and buy a hotel. I’ll pay cash now and later I’ll get my financing. We have escrow agents that can do this of course, but you want a qualified escrow agent that knows how to source dollars for the closing from Bitcoin. You deposit your Bitcoin with the escrow agent, opening an escrow contract for a specific property where the seller has already accepted your offer. The escrow agent will procure the dollars for the closing and at the closing, be sure to take title of the hotel in a new company name. You will want to register a new company for this, no matter how you are buying it.

The eleventh concept involves structuring the disposition of the asset as a loan or simply paying cash and taking the title in the name of a trust or company. Loans are not taxable and buying something for a trust is not taxable. You’ll need to sell your Bitcoin for cash and leave that cash in your LLC account so you can access the funds. If it’s a car, you simply tell the dealer that you already have a loan approved and then make your deal. Once you know how much money you need to buy the car, go get the cash from your LLC account in certified funds, naming the LLC as the payor and explain to the dealer that the LLC is the lender. Simply provide its address and EIN and the dealer will prepare the title documents accordingly, so that your LLC is shown as the lender on the lien side of the title certificate. This allows you to keep the car in your name if you have any issues with insurance rates and registration tax for not keeping it in your name.

Another simple way is to buy the car and simply inform the dealer how you want the car titled and make up the name of a trust at the dealership. Be sure to write it down so when you get home or back to the office, you can create the trust documents on your computer just to keep good records.

If you pay off personal debt, such as credit cards, those accounts are not subject to audit, so the money you pay would not be visible to the IRS even during an audit. But generally, when you use the LLC money to pay personal debts that can be discovered, such as mortgages, it will be considered income unless you structure or record a new loan to replace the first.

Paying off a mortgage is quite simple, but let me first suggest that you should not be so quick to pay off personal debt with your returns, instead, use your returns to acquire assets nd use the income from those assets to off-set the payments required for personal debts, without paying them off in one lump sum. It will make much more sense why you’d want to do this as you learn more. It has to do with internal rate of return and time value of money and your “personal” net worth. In any case, once you get your pay-off statement from the bank, remit the funds from your LLC within the time limit and that will satisfy the mortgage. You will want to prepare a new mortgage instrument with a new note and record the mortgage or trust deed (not the note) in the same county recorder’s office as the original mortgage was recorded. Do this within a short time, such as 30 days, so then it will be considered a re-finance and not just the payment of a personal debt. Make your regular loan payments back into the LLC so you will be able to show it was a real loan if ever the question is asked. There are a myriad of ways for doing this, so please ask me for help as you need it.

The twelfth concept is a more formal, effective and profitable way to use loans when taking profits. You have to work with an insurance agent who does this and of course we have the agent that will. You take cash out of your Bitcoin, so you’ll need an LLC or LP account for this, and then fund a whole life insurance policy. There are certain requirements in this process, especially for your first contract and after the brief waiting period, you’ll be able to borrow the money out of your policy, still earning interest on the whole amount, and use it to buy the asset you want.

You can also use it to fund your living expenses, tax free. The catch is that if you want to avoid having to make regular loan payments to repay the loan, you simply pay the interest on the loan in one lump sum and the rest of the money is after-tax money that you are free to spend however you want. In over two-hundred years, no contract has defaulted and the money is never invested in the stock market or the banking system, so the systemic risk of which most of us are aware does not affect these insurance contracts.

Let’s review the last seven concepts:

6. On your tax return, say “no” if you did not get a 1099 from any exchange,

7. If you are using a company such an an LLC, say “no”.

8. There is no statute that requires a limited liability or any other legal entity or any person to file a tax return

9. The taxing regulations would include a section that set forth the type, kind or class of tax, and a tax table with rates of taxation and other requirements.

10. using escrow to buy your next asset such as real estate with Bitcoin

11. Structuring the disposition of the asset as a loan or simply paying cash and taking the title in the name of a trust or company is nothing new.

12. You take cash out of your Bitcoin, then fund a whole life insurance policy, then borrow the money out of your policy, still earning interest on the whole amount, and use it to buy the asset you want.



Many of you have been asking me what I think of this, so let’s review the latest IRS Letter Ruling, 2019-24: Although I haven’t been able to locate this in the Federal Register, maybe someone else is better at searching it than me.

The following has always been my premise on the matter and it has resulted in the Secretary of the Treasury issuing determination letters in agreement. “If you cannot pay the tax in Bitcoin, then it’s not taxable.” These are my words of course, but you can read the article and the Secretary’s response for yourself at

But let’s say I’m wrong. You would be a fool to receive any asset in your name, especially as a U.S. Citizen. This is more astounding when you realize that you have many choices of how you can receive, spend and manage these “coins”, whether or not anyone can establish ownership from an address on the blockchain. How can this revenue ruling create even just one new question in your mind?

If you receive coins through a reporting third party such as Coinbase, in your personal account, that is not taxable as we’ve already obtained written determination letters from the IRS on this point. However, why not just use a tax deferred account, such as a limited liability company or other structure? Why not use encryption (e.g. a VPN) and hard wallets or decentralized software wallets or paper wallets or even a washing service? You have so many choices, why is this even a question?

I don’t mind paying taxes, but it seems quite unreasonable that crypto-graphic currency should have this huge carrying cost in the form of paying taxes before you even sell them for the actual currency being taxed. We don’t do this for precious metals, real estate, even securities, unless some amount of dollars (USD) is paid to us because of our ownership in the property, not simply because it’s worth something in the currency being taxed. It is the government fiat currency that is being taxed, not crypto-graphic currency. But if you report the value of the crypto-graphic currency in USD, under penalties of perjury, the agency will make no distinction and you will then have created a tax obligation for yourself when you had none before you made the report. Read section 61 again, it’s quoted in the ruling and take some time to read Publication 544, You’ll note that the IRS is correct and there is nothing new.

Quoting from page 3, right column:

Amount realized. The amount you realize from a sale or exchange is the total of all the money you receive plus the fair market value (defined below) of all property or services you receive. The amount you realize also includes any of your liabilities that were assumed by the buyer and any liabilities to which the property you transferred is subject, such as real estate taxes or a mortgage.

And since the entire 40 page publication is hypothetical, let’s talk hypothetically here for a moment. Let’s say I exchange some Bitcoin for Litecoin, what is my gain? This can never be calculated because I don’t have any data on my initial price. My Bitcoin purchase of course was not taxable, and buying Litecoin is then not taxable for the same reason, I have nothing by which to compare it. What was the price of the Litecoin I bought? It was so many Bitcoin. Give that some thought. You accountant will tell you it was so many dollars and some dude in France will tell you it was so many Euros (or Francs, whatever they are using these days). The “amount” is what you claim and in what currency you claim it. If you claim it in USD, then it is taxable, or at least reportable.

My main point is this, what if I paid 1 Bitcoin for so many Litecoins and when I exchange my Litecoins for Bitcoin, I receive 1.1 Bitcoins. Whoa! I just “realized a gain”, going by the commonly accepted rhetoric, of 0.1 Bitcoins. Let’s say I report that gain to the IRS and it becomes taxable. How do I pay the tax? Do I find some dollars from somewhere else and pay the amount of dollars that would be assessed in taxes? That’s what most people are doing. But am I required by any law to go get some dollars for that specific purpose? No.

Well then, should I pay the tax in Bitcoin? Let’s say I owe 23% of 0.1 Bitcoins, that would be .023 Bitcoins. Where do I send it? Will the IRS penalize me for making a frivolous return by paying the tax? Yes, most likely. Again, if you cannot pay the tax in Bitcoin, Bitcoin is not taxable.

What is the fair market value (FMV) of 1 USD? It’s 1 USD right?

What is the fair market value of 1 Bitcoin? It’s 1 Bitcoin right?

Let’s see if we can find agreement with the definition of fair market value in the IRS’s Publication 544 to this example.

Fair market value. Fair market value (FMV) is the price at which the property would change hands between a buyer and a seller when both have reasonable knowledge of all the necessary facts and neither is being forced to buy or sell. If parties with adverse interests place a value on property in an arm’s-length transaction, that is strong evidence of fair mar-ket value. If there is a stated price for services, this price is treated as the fair market value un-less there is evidence to the contrary.

How much would you pay for 1 Bitcoin? I would pay 1 Bitcoin, but today, I would also pay 159.88 Litecoins as of the writing of this article. By agency standards, the fair market value of any coin is at least the same value of that coin, even though people would trade you land or securities, the fair market value of any one coin is reasonably one of the same coin.

You should be aware that there are no new laws regarding crypto-graphic currencies or any related transactions. Since the IRS defined the currency as property in 2014, this definition adopts all case law and statutes that pertain to taxing property. In other words, when you think Bitcoin, think gold. If you don’t pay taxes on gold until you sell it or dispose of it for USD, why would you pay taxes on other property?

Because crypto-graphic currency is not taxable, and to change existing laws would be too risky and possibly cause people to wake up and start thinking about this instead of cowering in fear, it appears to be much easier to use the media and revenue rulings like this to change public policy. That way, people will just pay taxes on their cryptos just because everyone else is doing it. Just like everyone is using a social security number for everything even though there is no law requiring one.

Why is the revenue ruling process being used in place of real legislative changes? Maybe because people don’t understand how this works, but can easily be fooled because they are already afraid. Here are the Internal Revenue Manual (IRM) provisions for issuing or obtaining a letter ruling.

But let’s poke some fun at the language in the ruling itself:

First, quoting, “An airdrop is a means of distributing units of a cryptocurrency to the distributed ledger addresses of multiple taxpayers.”

This is patently false in that this is not the industry definition of “airdrop” and makes wild assumptions. What do “taxpayers” have to do with ledger addresses? The statement assumes too much. When has any crypto-currency been designed for taxpayers? It should read, “An airdrop is a means of distributing units of a cryptocurrency to the distributed ledger addresses of multiple addresses.” Or, let’s use a definition from the industry itself, “An airdrop is a distribution of a cryptocurrency token or coin, usually for free, to numerous wallet addresses.” Either way, whoever owns an address is another matter entirely and it really assumes too much to believe that only U.S. Citizens are the address owners here.

Here are a couple more issues, first, receiving the ability to sell property is not taxable, by the IRS’s own rules and definitions, using gold or stock or real estate as an example. Cryptos are property, there are no new laws on this matter. Receiving the ability to sell property is not taxable because I’m not required, at any time, to sell for USD (which are taxable).

Second, how is ownership established and how is the “individual” identified. For example, someone using a paper wallet (or Exodus). In your own household for example, let’s say your friend sends you coins to your Exodus Wallet. Who has access to this wallet? Your wife? You? Your oldest son? Your brother who visits on weekends to talk cryptos? How is ownership ever established, by your I.P. address and whoever the account holder is with your ISP provider? Again, the sole purpose of this letter ruling is the same as all the other media on the subject, to trick people into believing that they need to determine the fair market value of the coins upon receiving them, then keep track of how they are used and then report on themselves at the end of the year, as if they sold their coins for USD in every example.

Quoting, “Section 61(a)(3) provides that, except as otherwise provided by law, gross income means all income from whatever source derived, including gains from dealings in property.”

In receiving Bitcoins for example, where is the gain? Where is the income? Is it in the right to sell? Can I buy groceries with the Bitcoin or can I pay federal income taxes in Bitcoin? If one has the right to sell, then he has the right to sell for anything, not just USD. So what is being taxed here, USD or cryptos or the exercise of one’s intangible property rights? Is there any tax liability at all? I don’t see it and not because I might be ignorant, I don’t see it under any rules or authorities cited by the IRS anywhere, including this letter ruling.

Let’s poke a little more. Quoting, “In general, income is ordinary unless it is gain from the sale or exchange of a capital asset or a special rule applies. See, e.g., §§ 1222, 1231, 1234A.” Is the “sale of a capital asset” similar or the same is the disposition of an asset? Where is the sale in receiving a transfer of Bitcoins? This is how the U.S. Supreme Court explains the meaning and limitations of the definition of “capital asset”, “it is evident that not everything which can be called property in the ordinary sense and which is outside the statutory exclusions qualifies as a capital asset. This Court has long held that the term ‘capital asset’ is to be construed narrowly in accordance with the purpose of Congress to afford capital-gains treatment only in situations typically involving the realization of appreciation in value accrued over a substantial period of time“, Commissioner v. Gillette Motor Transport, Inc., 364 U.S. 130 (1960). The moment I receive it, there is a tax owed? How do you calculate a rate over time when the time value is 0?

Let’s review FAQ 36

Q36. I own multiple units of one kind of virtual currency, some of which were acquired at different times and have different basis amounts. If I sell, exchange, or otherwise dispose of some units of that virtual currency, can I choose which units are deemed sold, exchanged, or otherwise disposed of?

A36. Yes. You may choose which units of virtual currency are deemed to be sold, exchanged, or otherwise disposed of if you can specifically identify which unit or units of virtual currency are involved in the transaction and substantiate your basis in those units.

This says it all. You are choosing your own tax treatment, but look at all the complex record-keeping and look at how many infinite possibilities there are for anyone involved in cryptos to be audited and assessed taxes for under-reporting. I didn’t even consider costs of attending an audit and tax court. This is a quagmire and if you continue managing your financial affairs like you always have been, while using this new technology, it will be very expensive. There is no reason to be financially eviscerated in cryptos, use the technology properly, managing your money so that you don’t receive any gains and re-allocate at the right time into your new investment portfolio.

I really don’t think we need anymore rulings or news articles or interpretations from anyone, including the IRS, before we can conclude that, once again, cryptos are not taxable until you sell them for a taxable currency (e.g. USD).

And while we’re on this subject, let’s get the heart of the matter. The statutes and “tax treatment” policies are not relevant when it comes to private property. Let’s call it what it is, crypto-graphic assets, when used by most people, are intangible private property and the rights to use these assets are solely the intangible and private property rights of the people exercising those rights. No statute that has ever been written, and no statute that will ever be written can change this.

The recent Wyoming legislation is a great example. I’ve spoken with many people this year who had the erroneous idea that Wyoming was friendly to the use of Crypto-graphic assets. The state of Wyoming (a private membership association) did not grant property rights for the use of crypto-graphic currency. Just like no state can grant a human being the right to be born or to live, no more than it can grant a tree the right to grow or grant the Earth a rotational period of 24 hours.

Even so, the recent Litecoin conference reveals that Wyoming has or is adopting a very favorable set of rules and guidance for the court system that will uniquely protect property rights for crypto-graphic currency holders. You will want to review this, The most impressive deals with establishing clear title, avoiding licensing and money transmitter requirements (competing with New York and Wall Street that is) and bailments. The state tax is nice, but it doesn’t change anything with the federal laws. My point here is that you have to decide how to manage the asset to reduce or eliminate any possible federal taxes, but for state regulatory issues, Wyoming looks very promising.

The rights that the state has claimed to have been granted already existed. Instead, what the state did was impose a lien upon (take) the rights that people already had to have, own, use or exchange their intangible private property, by classifying these rights as “intangible personal property”. Nothing has changed however, because no association, or even government, can take private property where there is no compelling or public interest. Call it what you want, write pages with words on them, publish those pages, it does not alter in any way the private property rights that people have had since recorded history. These rights are protected under the Law of Nations and cannot be taken by any private membership association such as the state of Wyoming (or any other “state”). The state legislative enactment is irrelevant, unless you lack the understanding to know the difference. Likewise, association (IRS) letter rulings are irrelevant unless you waive your rights.

Just the same, we all know that theft is illegal or unlawful. But the law prohibiting and penalizing theft does not prevent theft. The property owner must take measures to protect his own property and property rights. He must place locks on his doors, secure his passwords, have deliberate habits, store his valuables, carry weapons and encrypt not only his communications, but access to his money (i.e. crypto-graphic assets).

This is precisely the reason why crypto-graphic currency is not taxable, because it is not a creature of the state. It’s the result of people working independently of any government, independently of any government official purpose, and simply trading with each other, or improving their means of trade. In nearly every instance, the state, and I’m including any state or private association, has zero compelling interest and therefore no rights to impose a lien upon or tax the use or possession of crypto-graphic assets. However, if you can be fooled into placing a dollar value on the use of your crypto-graphic assets and then declaring that to the agency, especially under penalties of perjury, then you will have waived your rights.

Money is fire. I’ve seen it kill people and I’ve seen it bring society into the modern era. Make no mistake, crypto-graphic currency and related assets are like fire. We just discovered it, and we can use it to burn down our houses, or, we can use it to cook our food, stay warm and protect what is important to us.


The IRS is now sending letters to try and scare and trick people into responding or reporting cryptos when they are not reportable. It’s a form letter, Form 6174 titled “Reporting Virtual Currency Transactions”. This is nothing but a sales letter.

It begins with, “We have information that you have or had one or more accounts containing virtual currency…”. This is a lie; if the IRS received such information you would have received a 1099, a copy of the one reported to the IRS.

It goes on to say “… if you believe you didn’t accurately report your virtual currency … you should file amended returns…”

You don’t have to read any further because this letter requires NO response whatsoever and if you want to discuss it with your accountant, he or she will try and scare you into reporting something that is not subject to reporting at all. If you get this letter, ignore it. The only communication that is important is the 1099 form, and we’ve already proven the correct response to the erroneous 1099 reports in the December 2018 article further back in this blog.


In the late nineties I began “re-organizing” assets and income for people and small businesses having both large debt and large windfall situations. Referring to myself as “I”, is just for convenience, and many of you know my organization as Singleton Press, PMA (a private membership association). These strategies were part of various solutions that allowed people to protect what they had and prevent future losses from unfair collections while they were able to scale up the income of their businesses and investments. I’ve been organizing structures inside the United States (including what we believe to be the fifty states) in a way that legally avoids not only tax consequences, but attachments resulting from tax and judgment lien levies against income, real estate and cash in the bank. The many versions of these structures I’ve referred to as “Bullet Proof Banking”, all registered within the United States. In spite of new laws and banking policies that act as if we are involved in money laundering or some kind of trafficking, when in fact it is the banking system that is involved in these very crimes, these strategies are absolutely sufficient to accomplish the objectives intended for the benefit of each of our members. These strategies have withstood all of the new statutes, including even the Patriot Act and the National Defense Authorization Act and even the new banking policies that we now know as “Know Your Customer (KYC)” and “Anti-Money Laundering (AML) or The Bullet Proof Banking strategies continue to protect people against these draconian policies and statutes; however, if you want to get into securities, developing land, business credit, trades, professions, brick & mortar businesses and raising capital, it becomes a little arduous.

Many of our resources have been shared with members so that they could begin or develop a business or new source of income. Some of our members just needed to supplement a pension because their investments were raided by the IRS, and some of our members simply wanted to start a new venture or expand into new market niches. Over the years we’ve developed business plans, resources and shared suppliers and some trade secrets, when not restricted, for the purpose of helping people and small businesses succeed.

My purpose in writing this article is to show you how to become a national and change your own political affiliation so that you can have real access to your money and the assets that enrich your lives and allow you to advance technology for the benefit of people and of course, profit.

If you reside in the United Kingdom, Canada, Australia, New Zealand, India or Belgium, we can use the PMA along with the limited partnership or a limited liability company to get the same or very similar results as we have in the states.

I want to introduce each of you, and new members, to a very real opportunity to further support what we’ve accomplished over the years, and to enable those of you who wish to gain the most from possibly tens or even hundreds of millions of dollars realized from investing in crypto-graphic currency. You will want to manage your new assets completely beyond the purview of state and federal taxation and regulatory impediments, including the securities statutes and unjust financial crimes presumptions. The most certain way to do this is to change your affiliation and national status and the following article is the real deal.

A Brief History

Over the last twenty years I’ve been observing the re-establishment of a nation (our nation). I did not realize until recently that I had been witnessing the emergence of a nation that had been marginalized since the thirteen American colonies became states. The United States of America was created under The Articles of Confederation in 1781, with the final adoption by the State of Maryland on March 1, 1781.

I remember in school, and I attended public school in the seventies and eighties, the false history that the U.S. Constitution was amended and replaced the Articles of Confederation for a stronger central government. This of course was a lie since a quorum to amend the Articles was never reached. Instead, people who were not in public office at the time, formed a franchise of the East India Trading Company, giving it the name “United States”, its charter being the U.S. Constitution. This company (not country) adopted the standard trademark of the East India Trading Company, a symbol we have come to know as the American flag, the “red, white and blue”.

This fact seems so outrageous that most people will not believe it, but the research will establish, without question, that the United States is nothing but a corporation, by its own admission in case law, historical documents and its by-laws (the United States Code). The United States is not a government, it’s nothing more than a collection of thousands of private membership associations (PMAs). This includes the so-called courts, sheriff, police, “government” agencies, departments, and every city, town and county is its own private company, privately held by private interests. The voting system is a sham, none of the so-called elected office holders are ever elected by the voters, they are appointed by the same people in those private membership associations.

If we dare speak of these facts openly, those running this racket may label us a “sovereign citizen”, another word for “domestic terrorist”, and thereby a possible death sentence at any routine traffic stop. Labeling someone a “sovereign citizen” is nothing but a death threat and at least one human rights violation (e.g. forced affiliation).

In addition to this, these very cities have been captured by other private organizations that are now perpetuating the ideas of “sustainable” or “strong” or “resilient” cities. This is code for a communist dictatorship under a foreign monarch, known as the Pope. And because people don’t usually think critically these days and lack the ability or willingness to research anything for themselves, they will not understand what is intended here. We can see some of the results of these plans by observing that we are under total and perpetual surveillance and under the attack of military weapons systems, including but not limited to microwave towers, Wi-Fi routers everywhere and SMART meters.

Why has this happened you may ask? It’s nothing new, you can see this has been happening for over a thousand years, it’s described in Book I of the Law of Nations. The secret societies were in a position to monopolize our government for their own commercial gains, namely, it was the Free Masons, operating through the Vatican (Pope), The King of The Netherlands and The Equestrian Order of the Holy Sepulchre of Jerusalem and the university system in the United States, the most prominent ones being Georgetown and George Washington Universities. Georgetown University, the trade name of Georgetown College, is literally the seat of government for the District of Columbia.

The Declaration of Independence and the U.S. Constitution do not involve people living today. These documents are not the source of peoples’ rights or protecting the rights of any people. This entire system is operating under the Law of Nations and most of what is taking place is in violation of the Law of Nations and in violation of the Universal Declaration of Human Rights. Please search these two terms on the Internet with the term “PDF” to obtain free copies and begin reading for yourself. Is it any wonder that we were never introduced to these bodies of law? It’s time we begin to learn.

Identifying the Problem

You’re going to have to give yourself some more time to discover the supporting facts of this saga, it’s too much information to get into for this short article, and I only wanted to introduce you to a solution to many of the problems you are experiencing. Let’s consider some of the major ones

1) human trafficking and trafficking of persons

2) compulsory public schools intruding into our families (surveillance, vaccinations)

3) family courts and government agencies intruding into our families,

4) having to take on long-term debt just to get the basic needs for living,

5) being tricked into taking on long term debt for a fake education,

6) state and federal taxes and regulations,

7) everyone is a suspect in money laundering and domestic terrorism

8) perpetual and intrusive surveillance

9) being taxed by foreign agents (“judges”) for the exercise of intangible property rights

10) being excluded from society because of your credit rating

The list is quite lengthy but these are the most important items that can be eliminated by correcting your legal status. I’m going to explain what is meant by this term.

Since you were assigned a social security number and since you assigned your children a social security number, each of you have been trafficked out of your home state, one of the States of the Union (The United States of America), and thereby denied any national status. You have never signed a social compact and joined a political party (today’s so-called political parties are nothing but “527” organizations under 26 U.S.C. §527, not political parties). True political parties are not registered with any government agency. The Democrats and Republicans are not political parties, they are tax exempt organizations.

Your “person” has been trafficked out of the state in which you were born and into the United States as the property or surety of the debts for one or more internal revenue trusts situated in the U.S. Virgin Islands, Common Wealth of Puerto Rico, Guam, or the American Samoa or some other federal territory. This made you a resident alien and an enemy of the state in which you live. Since then you have been living as an enemy of the state and described as such under The Trading With the Enemy Act as amended on March 6th 1933 by Franklin Delano Roosevelt (see Title 5 U.S.C. §552(a) “Government Reorganization Plan)

This is why your children can be taken, why your votes don’t count, why you are censored and under surveillance and the reason why you are being taxed and regulated out of existence. This structure has prevented good people from consolidating capital that was intended for the benefit of people, such as to advance certain technologies. Whenever the banking system sees that someone is consolidating capital, the money and property is seized and the Securities and Exchange Commission, or the IRS or Financial Crimes Network (FINCEN) gets involved. The victims naively ask attorneys for help and the attorneys, who are working for this system and against people, take the matter into bankruptcy court and the property is then stolen by the very people who are preventing the consolidation of capital. It’s not only about taking your money, it’s about preventing you from having money or resources, at whatever cost is needed.


Are you really tired of this system? Here’s why you are being abused, because you don’t have a nation, you are a citizen of a corporation, you have no country, no political affiliation. The remedy is to change your affiliation and become a national, specifically, an American National, join your State Assembly, take a real oath and sign a compact with people in your nation. Once you’ve done these basic things, you will have removed yourself from the U.S. system of taxation, regulation, abuse and exploitation.

The first step is to declare your residency. First, using your home address, you obtain the latitude and longitude for your home address at and then convert these coordinates into the natural area code (NAC) using The NAC coordinates will look like a series of capital letters and numbers. The postal system will deliver mail to this address, even though you may encounter some resistance or interference, all existing postal systems use the same software which does include the NAC database. This has been adopted by the Universal Postal Union around the world. Send yourself some post cards with this address until you begin receiving them on a regular basis. This will be the first step to getting you out of the U.S. jurisdiction. Before you begin, please have patience, realize this takes time, and be sure to watch and take notes from the 103rd Broadcast of the T-ROH Show.

Once you have this information, visit the website for The United States of America at The first thing you’ll want to do is the declaration of residency from the link on the main site:


Use the name that appears on your birth certificate, and it will result in your legal name being published, and your trafficked person will be returned to the state. The bonds will then collapse, and you’ll want to order the service to take the oaths and that is a 90-120 day process of collecting records. Once that is done, you can take the oaths and then you can get your passport and give up your state driver license and vehicle registration in exchange for the only real identifying records that will not be used to traffic your person or tax you or hold you as a surety. You will then be able to register your car in The United States of America (States of the Union) and export your land (home) into the States of the Union.

You will also want to join the American National Union once you register the existence of your name as a business, such as a limited liability company or a private membership association (PMA). This is the main website, and there are unions for every trade and profession. Join the discussions and please take time to learn more about the PMA at As a quick example, your family is a private membership association and no government or police power has any authority to intrude into your PMA unless it is engaged in acts considered to be substantively evil. Knowledge of this one item alone would be enough to stop most of the family court abuses.

Mothers and fathers don’t realize that the term “neglect” is being used in these family court proceedings without any set of facts, nor any set of facts established with evidence of any kind. Moreover, the set of facts that is not disclosed, involves the presumption that you are involved in money laundering. Yes, family court accusations of “neglect” involve the judges taking silent judicial notice of the mother and father being involve in money laundering. This is why no matter what your argue, it will have no effect on whatever the court want to do with your children, and your attorney is helping the court and the state. You will discover how this is done as you begin to learn more about what I’m explaining in this article.

You’ll want to begin learning about the Bank of North America and the Continental Dollar (UCD) and the Continental Public Bank at This bank is approximately 240 years old and its currency is pegged to silver bullion in a 1 to 1 ratio, that is, 1 UCD : 1 oz. Ag bullion.

The pension program of The United States of America can also replace your U.S. based social security pension, you will have to research to learn more about this. Once an American National, you can join its military and run for public office, a real public office where the voters’ votes really do result in a real office holder being elected to serve the people.

You should also know that the United States exists in grid system of approximately 500 rectangular regions, not the fifty states we were told in school. This is a survey or map of your current residency.

On the other hand, The United States of America includes all of the 50 states with which we are so familiar.

Becoming an American National is not intended to solve your tax or court problems. If you decide to become an American National, you will want to do it for the purpose of changing your affiliations and enjoying the benefits of being part of a nation, and not for the purpose of solving problems related to a debt collection or court process.

Having the American National status will end your own human trafficking and the trafficking of your person and free up your access to money and the enjoyment of property. It will remove your person from the purview of the United States and all of its agencies, such as the Securities and Exchange Commission, IRS, state agencies, etc. You will have new obligations, but they will be fair and lead to your prosperity.

You will certainly want to re-mediate yourself to compensate for all of the propaganda you’ve been surrounded with for an entire life-time. Please watch/listen to The T-ROH Show by searching the channel “The Government of The United States of America” and the phrase “The nth Broadast of The T-ROH Show” and replace “nth” with “first”, “second”, “third”, “fourth”, etcetera. There are over two years of weekly T-ROH shows and you will want to hear all of them, from the first to the last.


Imagine organizing your investment company or business outside of the United States, and within The United States of America. Once you become an American National sign the social compact, take your oath and join your State Assembly, you may conduct your business and lawfully managing your investments in The United States of America and outside the United States while avoiding all of its unjust taxes and regulations. This fact alone may be a decision maker for many of you, but as you learn more about this, you will discover many more reasons to change (or correct/restore) your affiliation.


Many of us are anticipating substantial windfalls on this next crypto-rally near August and September, and we have a need to take short term profits, but not with $20,000. Many of us need a way to manage $10,000,000 or more. It’s easy enough to go into a stable coin, but the adage of never put all your eggs in one basket is foretelling. I’ve described a few options here, many of which I’ve used over the years for different reasons, basically to move large amounts of money and valuables between jurisdictions.

However, if you want to source hundreds of thousands of Bitcoins, or the equivalent, in currency, precious metals or even loose diamonds, or move from your large currency position into another other asset, and move money across different jurisdictions, I do have a turn-key solution and it’s time tested, insured by the world’s largest re-insurers, including tier 1 escrow, allocated vaults, multi-currency accounts and insurance for your crypto-currency holdings. Simply send an email to [email protected] and in the subject line include the phrase “special treatment”. Do not include financial information, but maybe a general description of what you need.

How can we temporarily take profits for the short term and get back into our crypto-graphic assets, without pooling all of our windfall into one place while staying liquid enough to get back in quickly? You want to stay liquid but get out of your crypto-assets while the price drops, and then quickly buy back in as the price continues to rise. You want to avoid having your money frozen and being accused of money laundering or something similar.

The biggest risk in these situations is the government and banking institutions. There has always been a hidden motive to prevent people like us, who are not “in the club” with the elite, from consolidating substantial capital. Now with the onerous anti-money laundering and terrorist laws and policies, it’s just easy enough for any bank to seize your money and impose conditions on you to prove its origin before gaining access again. The banks and regulators actually have a profit motive for this. How then do we stay liquid while avoiding falling crypto prices and keeping our short-term profits, so we can get back into the assets as the prices begin to rise again?

The criteria include moving into a stable coin, one or more, with a secured exchange, application or other device. The strategy may also include getting into cash, preferably away from any financial institution, but you should be okay using a financial institution as I’ll explain. And moving your crypto value into precious metals, most practically in vault services that deal in crypto-currency themselves. We have several options. Keep in mind that you want to move from cryptos into something that is liquid, and that is not manipulated anywhere near a 1:1 ratio as your crypto-coins may be, it’s a tricky process to navigate.

The “Stable Coin”

There are several strategies, most involve using a reliable stable coin, a crypto-currency pegged to fiat. The top three are mentioned here, but keep in mind, the strategy is to avoid volatility while retaining liquidity. This can be done with cash, precious metals, commodities and stable coins.

Stable coins are one way to take profits without going into your fiat currency, and stay liquid for the purpose of buying back into cryptos when there are substantial price drops. This also allows you to avoid any financial institution. Here are the three most reliable stable coins in the crypto world.

TrueUSD (TUSD) is likely the most reliable “stable coin”. TrueUSD provides its token holders regular attestations of escrowed balances, full collateral, and also the legal protection against misappropriating underlying USD. It is regulated and independent of the exchange marketplace while backed (exchangeable) 1 to 1 with U.S. Dollars issued by trust token. Unlike USDT, TrueUSD ( does not hide anything from users. It’s bank account holding proofs is published each month. All funds equivalent to TUSD are stored in professional trust firms’ banks. In addition, TrueUSD never touches those funds. Another good thing is that users can directly exchange TUSD with USD without even using any exchange. It only requires your typical “Know Your Customer / Anti-Money Laundering” disclosures.

The purchase and redemption process is completely handled by TrustToken Smart Contract, in case you are not using any exchange service. Many people believe that TUSD is far better than Tether in terms of safety and legal protection. You can decide for yourself, but these are the recommended exchanges for TrueUSD: Bittrex, Binance, Huobi, Okex, Kucoin and Cryptopia.

The second recommendation for a stable coin is the GEMINI Dollar. “GUSD” as it’s abbreviated, is another trusted stable coin issued by Gemini Trust Company, LLC, a New York trust company. Gemini Dollars, equivalent to U.S. Dollars are at State Street Bank and Trust Company. Proof of funds in banks account are examined by BPM, LLP, a registered public accounting firm, in order to verify the 1:1 peg. GUSD is the safest coin as it comes under U.S. regulators. I don’t trust any regulators, but at least we have a good idea of the organizations and people with whom we are dealing. These are the preferred (most popular) exchanges: Okex, Okcoin, DigiFinex, and BitForex

A third stable coin that is recommended includes USDC. It is a regulated stable coin backed by the U.S. dollar. All USDC are issued by Circle Internet Financial Limited. The USDC equivalent U.S. dollar is deposited with its accredited bank partners account after that it issues the tokens for circulation. This is an ERC-20 token, and the token can be stored on a trust wallet, Ledger, BitFi or other hardware wallet. Recommended exchanges include: Poloneix, OKEX, DigiFinex, CoinEX, and Kucoin.

There are more stable coins available in the market but those are not very popular and listed in only a few exchanges that are not trusted as well as having very low volume. Currently, USDT is the only stable coin which listed in almost all crypto-currency exchanges in the world. But, due to the recent crash of USDT, it’s not as trust worthy as the three I’ve mentioned.

Precious Metal Vaults

Moving between any money and precious metals does not always give you the liquidity you might require, except that some very reliable vault services and exchanges implement the use of cryptos with the vault storage of precious metals. You need to be able to buy and sell with at least one reliable crypto-coin, and have your holdings stored in a vault that can be sold any time via your crypto-coin.

Use Uphold to store your cash in 23 different currencies, any of four precious metals (gold, silver, palladium and platinum) and two of the stable coins. You can link your wallet to your bank account or debit card. This service includes instant conversion and seamless exchange between major digital and fiat currencies. Transact with any wallet on seven crypto networks.

The most important aspect of buying precious metals to get out of crypto-currencies, is that the metals must be stored in the custody of the exchange in order to have the liquidity needed, and you should be able to exchange back into your crypto-currency just as easily.

Keep both cash and bullion on your account! This enables you to trade in and out of positions at your convenience.

As a BullionStar account holder, you are able to keep funds on your BullionStar account in Singapore Dollars, US Dollars and Euros. Funds on your BullionStar account can be used towards purchases of bullion or be withdrawn anytime.

Bitcoin holders who are thinking of diversifying or taking some profits on their Bitcoin positions may be interested to know that in addition to transacting in US Dollars, Singapore Dollars, and Euros, BullionStar also accepts Bitcoin as a payment option for its precious metals products, and has done so since May 2014.

Using the BullionStar website, customers can quickly and efficiently purchase gold bars and gold coins, as well as silver bars and silver coins using Bitcoin. Customers can also sell gold and sell silver to BullionStar and receive settlement proceeds in Bitcoin.

The maximum transaction size for a purchase order using Bitcoin is currently set by BullionStar at BTC 200 per transaction. There is no minimum transaction size for a purchase order using Bitcoin. For sell orders that settle in Bitcoin, the standard maximum transaction size is currently 30 BTC per transaction, but this can be higher upon discussion with BullionStar.

Vaultoro (

Vaultoro is another platform for purchasing Gold with Bitcoin (and vice-versa) effectively and within seconds. The beauty of the Vaultoro platform is that it gives investors the power to instantly exchange between two of the world’s most popular Alternative Assets, which can protect you against inflation and volatility. Watch these introductory videos about using Vaultoro,

Cash / Currency

While you can store cash (fiat) at BullionStar and Uphold, Caleb & Brown in Australia has additional solutions.

Caleb & Brown

This Australian firm provides the best of both worlds. This is not a banking institution but it can store your cash and crypto-graphic currency and it does provide services much like a brokerage firm. I like this very much, especially for U.S. Citizens, because there is no reporting obligation for Caleb & Brown nor for U.S. Citizens on Form 5471 for the reason that clients are not account holders at any financial institution and have no interest in any foreign corporation, and there is no duty to report on their investment activities. It leaves all reporting, if there is to be any, in the hands of the client. You can establish a personal or business (e.g. LLC) account with Caleb & Brown, and it’s not a bank account, and it’s not ownership in any foreign corporation, nor are you a signer on a foreign account.

In my opinion, the best way to get involved with Caleb & Brown is to join Crypto Jay’s Trade Calls. He is an institutional trader, his website is at and you can receive daily charting and get the best forecasting you can find. You may also want to get in on special announcements about imminent trends in crypto pricing at ( The patreons get to know which trades that Crypto Jay gets into and out of, what his target are, and the reasons. A typical exit usually produces 1,500 to 2,000% return because these are trades lasting six months to a year.

You can take profits and move them into cash, or you can transfer from one wallet address to another, or you can use qualified escrow to move the value of your crypto-currency into other assets anywhere around the world. There is no need to wire transfer funds to other countries. The key feature in these services is that you can move from your crypto coins into another asset such as precious metals without first converting to cash and without using the bank wire system.

While you might wire money to open your account at Caleb & Brown, or simply transfer from one wallet to a wallet in its custody (Caleb & Brown), you will not need to wire transfer profits in cash anywhere. You can simply move from your wallet at Caleb & Brown to another wallet, for example, at an exchange in your country, and then sell for local cash. If you’re in the states, simply move from your Bitcoin wallet “in Australia” to your Bitcoin wallet access in your exchange account in the states, and then sell for cash. There is no need for a wire transfer. And if you are doing a very large transaction, such as trading your coins for other assets such as real estate, you can use qualified escrow.

Schiffgold (

Peter Schiff has been brought into the crypto-currency sphere kicking and screaming, but we still respect him. He manages a precious metals vault service that can be accessed via crypto-graphic currency, much like BullionStar.


TradersHome (

Here you can choose from currencies, commodities, stocks, derivatives, and more to diversify your portfolio. I don’t believe it provides vault storage services such as for precious metals, but then base metals and other commodities are not typically stored in vaults. You’ll have to gauge your own risk tolerance.


At the right time you take profits with the intention to get out temporarily and back into your crypto holdings within about 90 days, you want to move the value of your cryptos into something that is mostly if not totally out of the banking system, but something that will allow you to get back into your cryptos quickly, including stable coins, cash, precious metals in vaults that are accessible via Bitcoin. I would like to see more ways to exchange my cryptos for base metals, such as copper, in the same way there is for precious metals. Traders Home may be one of the services I have found, but I’m still looking for more.

Consider these criteria:

1) A stable coin that is reliable and not manipulated in same pattern as exchanged coin.
2) Cash or currency outside of the banking system, such as in a vault.

3) Must be able to buy and sell using crypto-coins, or at least cash and currency

4) Avoid wire transfers of currency

My research shows that all of these solutions may require “know your customer” and anti-money laundering disclosures from signers of account holders, they also allow account holders to be businesses such as limited liability companies and limited partnerships. In some isolated cases, you may not need to use a company as an account holder, but most of the time it will be to your advantage, not just for tax purposes and estate planning, but for managing other types of risk normally associated with large amounts of money.

If you need “special treatment”, send an email with this phrase in the subject line to [email protected].

My last recommendation is to avoid acting with fear, instead, simply be pragmatic.


Listen to my latest conference call on this subject:

December 20th 2018

Receiving a 1099-K and How to Avoid the Taxes

Did you know that transactions between crypto-currencies are not re-portable by the exchanges in which they are held.  The 1099-K is deliberately erroneous so that people will mistakenly include the information on their Form 1040 and then be subject to paying taxes on property that was not subject to the tax.  It’s not because of a law, it’s because of how people are mistakenly reporting information on their 1040 that creates the tax situation. The Secretary of the Treasury confirms that trading between crypto-coins is not taxable.

There is no income tax between crypo-graphic currency exchanges; however,the IRS is mis-applying the “backup withholding” provisions under 26 U.S.C. §3406 to force the exchanges to sell 31% of the dollar value of your crypto holdings and pay it to the IRS unless you request a determination letter and file a current W-9 Certification. This is specific to personal accounts at the exchanges, not business accounts such as LLCs that do not file returns.

Why do you request a determination letter? Because backup withholding applies only to “re-portable payments”. Re-portable payments are only payments of interest or dividends in U.S. Dollars. Trading between crypto-currencies has nothing to do with receiving payments from interest or dividends. The IRS is doing this to escape the normal tax assessment procedures that would allow people to scrutinize what is being done and you will not find any accountant or attorney who understands this well enough to correct it.

How do you request a determination letter? You must request a determination from the Secretary and it must be in a particular format as described in the most recent IRS Revenue Procedures Manual. I’m not trying to be cryptic here, but the language of the request is fairly technical and specific to 26 U.S.C. §3406 and 26 C.F.R. §31.3406(a)-1. I’ve used this process for nearly 20 years and it is very effective.

This works whether or not you are using the limited liability company and Blockchain Tax Immunity Trust or not. Everyone who is filing a 1040 and receives a 1099-K reported in his or her name and his or her social security number or EIN can use this process to eliminate any taxes resulting from the amounts reported on the 1099-K. One request will need to be made with regard to each 1099-K.

This needs to be corrected immediately, do not try to use the falling prices of crypto-currencies to claim losses with the IRS because you will be on the hook for taxes as the currencies increase in price against the dollar. Don’t play this game, correct it now or it could cost you tens if not hundreds of thousands of dollars.

When people begin receiving 1099-K forms from their crypto-exchange accounts, for crypto trades that did not involve selling cryptos for dollars, all hell is going to break lose. They will probably, and mistakenly, report the information on their tax returns because they don’t know any better, or ask a CPA or attorney for advice, who will mistakenly tell them to report the amounts on their tax returns. This report pertains only to people who have personal accounts on the crypto-exchanges, and does not apply to tax deferred limited liability companies and those using the Blockchain Tax Immunity Trust.

There is no tax liability for trading crypto-currencies for other crypto-currencies; however, if you can be tricked into reporting what you believe to be taxable income on your tax return, then it becomes taxable.

If you want to keep your money, and legally avoid the taxes, you must EXclude the 1099-K information from your tax return and send the exchange an updated Form W-9 certifying the correctness of your social security number and that you are not subject to backup withholding for the most recent tax period. Additionally, you must request a determination letter from the Secretary regarding the issue of backup withholding. This is where almost no tax professional will understand what to do, including attorneys.

You must have filed your tax return for the same period, and filed a current Form W-9 with the exchange, retaining a copy for yourself and have kept a copy of the Form 1099-K from each exchange. These documents must be sent to the Secretary of the Treasury, to each of three mailing addresses, via certified mail, along with a properly written request for determination letter. You cannot simply send a letter to the IRS or to the exchange claiming that the Form 1099-K is incorrect, this will be ignored. You must use the proper administrative procedure, as published by the IRS, and request a determination as to backup withholding. This will allow you to exclude the Form 1099-K data from your tax return, minus the amounts of cash you took in your own name.

Please follow this blog for updates and information. You should expect a Form 1099-K from each exchange before January 31, 2019; and in response, you will need to prepare and send one request for determination letter for each.

The following is the legal analysis for the reason why no taxes are owed, but I must caution you that simply using this analysis in some kind of protest letter will do nothing, it must be part of a six-page request for determination letter as instructed within the Internal Revenue Bulletin.

STATEMENT OF LAW: The law is certain and unambiguous. Please be advised that 26 C.F.R. §1.1471-1through 7 is defined as:  “Reportable payment” to mean,“The term reportable payment means a payment of interest or dividends (as defined in section 3406(b)(2)) and other reportable payments (as defined in section 3406(b)(3)).”

ANALYSIS: The 1099-K incorrectly reports dollar amounts that were not remitted or distributed to the payee as stated on the form. The payor has retained ownership of the underlying property (amounts erroneously reported as payments in dollars on Form 1099-K) and never dispersed any payments to the payee, other than those reported on the payee’s filed tax form or statement (i.e. Form 1040). The “taxpayer”herein was not the “payee” of any interest, dividends or other re-portable amounts identified under 26 U.S.C. §3406(b)(3). Additionally, the dollar amounts erroneously stated on the disputed Form 1099-K do not represent dollars paid to the payee (settled transactions) and do not identify any amounts of interest or dividends paid to the payee and therefore, are not subject to backup withholding.

Specifically,“other re-portable payments” as they relate to this transaction,are identified in 26 C.F.R. §31.3406(b)(3)-5(a)“Payment card and third party network transactions subject to backup withholding.”

26 U.S. Code § 6050W(c) identifies a “reportable payment transaction”to mean “any payment card transaction and any third party network transaction”, and as it pertains to the transaction herein, Form 1099-K, “The term third party network transaction means any transaction which is settled through a third party payment network.”  Assuming for a moment that the reporting party (payor) is a third party payment network, the dollar amounts stated on the pertinent Form 1099-K were never “settled transactions” within the meaning of the regulation and the dollar amounts stated on the Form 1099-K are incorrect. No payments were made to the “payee” as erroneously stated on the disputed Form 1099-K.

CONCLUSION: I am not subject to backup withholding for the period ending December 31,2018.

Crypto-Currencies Are Not Taxable

Imagine for a moment that we had a taxing framework and did impose taxes upon the use and ownership of crypto-graphic currency. As all income tax systems operate, anywhere in the world, the taxpayer is the owner of the thing being taxed. We all understand very well that if we don’t own it, we don’t owe taxes on it. Even sales taxes are imposed upon retailers, not the actual customer. Itemizing the business expense of sales taxes on your receipt is a trick to make it appear as if the customer is paying the sales tax when in fact it is the retailer. The same is true of crypto-graphic currency. The owner of the currency in a central exchange such as Coinbase, is the taxpayer. If you don’t already know how the software for crypto-graphic currency functions, there is a blockchain, a ledger that keeps track of all transactions, a “mining” operation which is software that produces the units of currency or tokens through mathematical calculations, and then we have the actual unit of the currency, the “coins” that are held in wallets, individual databases where this data is stored for use. The individual units of the currency are controlled by keys, or lengthy codes that come in two parts. One part is the public key that allows anyone to see the value of the wallet or key and then the private key which is only known by the owner of the wallet or coin and which is used to “spend” or transfer the currency. The owner of the private key of a crypto-graphic currency is the owner of the currency.

In the case of central exchanges, the exchange is the owner of all of the private keys. Even if some tax was imposed on exchanges between currencies, the taxpayer would be the owner, or the central exchange, not the user such as the account holder, or the exchange customer (people using the exchange). This tells the whole story, and all the misleading news articles just play upon our lack of knowledge.

In the situation where the exchange owns the private keys for your wallet, we have a trust relationship. The customer is the grantor and the exchange is the trustee who owes the private keys back to the grantor on demand. The trust collapses at the point that the currency is transferred away from the exchange and into private keys held by the customer. The way to have this properly recognized, for example in a tax audit, is to declare the existence of the trust within a written declaration of trust.

Lacking this understanding, you’re probably setting yourself up to pay way too much in taxes from crypto exchanges because of all the misleading statements in recent articles published by mainstream periodicals and their attorneys. There has to be a specific taxing statute, and taxable activity and rate in the statute, and then the agency must have promulgated a regulation to implement this specific taxing statute.

Because people don’t understand the law, they report items that are not required to be reported and because the tax return is signed under penalties of perjury, the IRS just accepts that you are telling the truth and what was not taxable before, becomes taxable because it was reported incorrectly. For example, because people don’t read the definitions, nor do tax professionals, they act as though their business is a “trade or business”; however, the statute under Title 26 section 7701 defines “trade or business” as “the performance of the functions of a public office”. If you’re a Congressman, agency employee or federal judge, you’re involved in a taxable trade or business, but if you’re a plumber, you are not.

That is how the system works, and your accountants and attorneys help you make those mistakes. Here is an easy way to understand this one aspect being described in the news lately. It pertains to one word being added to limit the application of “1031 exchanges” to only “real property” and not just any property. If you sold real estate and made a profit, it was taxable unless you bought another similar property within so many days. If you took your taxable profits and bought another “like” property, you qualified for the “1031 exemption”. You went from property to “dollars” back to another like property. There is no such thing as a “crypto-exchange of like cryptos”. Adding the word “real” to the statute did not create a whole new legal framework that now imposes taxes on crypto-currencies of any kind or in any way.

This change simply limits the exemption to “real” property. Property has always been taxable to the extent that a gain is realized by a taxpayer. Here is an example you can ask any tax professional. “Does a taxpayer incur a tax debt when he buys gold, which is property?” “Does a taxpayer have a tax liability if he trades his gold for silver?” Or, “does a taxpayer have a tax liability when he sells his gold for dollars?” What if I exchange my gold bullion for gold coins? It’s the same question, and same answer.

In the cryptographic currency example, going from one crypto to another does not involve first going back into “dollars”, so this is a completely different situation, assuming it’s even taxable in the first place. Stay out of fiat, reinvest, and, even if you would personally have a taxable event, use a tax deferred structure such as an LLC in the states and use its EIN and not your name and SSN and you can defer the fiat tax liability, assuming there will ever be one. It can be deferred forever if you plan it correctly.

Even if there were eventually a taxing statute and regulation imposing a tax in a crypto currency, one or all, how would you pay the tax, in crypto? A taxing statute and its regulation would specifically apply to a taxable activity, and it would specify a rate along with the type, kind or class of tax. There is no such statute or regulation at this time. Even if there were, you could never pay the tax in the crypto-currency. It just isn’t taxable, anymore than words can be taxed, or taxing the use of words, no such thing, and no such tax on cryptos. This tax myth is based upon incorrect premises, read the statutes and regulations. I know that some people have good intentions, but everyone should really do some research first, and don’t just rely on a tax attorney or accountant as those are just agents of the system to get you to buy into the false premises.

True story: In the early nineties, my first debt collection case assigned to me by my partner involved a flower farmer who had spent 35 years building up an incredible seasonal flower farm business. When I got the case, the IRS and bankruptcy trustee were tagging every item in his home, his farm and had taken all of his equipment and vehicles. He only filed bankruptcy because he thought he could deal with the IRS better that way, but it just made it easier for them to take his property. After a few months of collecting facts in the case and corresponding with the IRS and different offices, I discovered that the IRS had been taxing this flower farmer for “manufacturing surface coal mines”. This is actually a crime, so I filed a formal report of my findings to the Federal Bureau of Investigation. It wasn’t 30 days later that my fax machine (remember this was back in the nineties) began spitting out page after page my client was sending, of notices from the IRS, releasing every lien and levy it had and returning all of his property. The IRS vanished and he never had another problem again. That’s when I began to realize what kind of a racket these pirates have been perpetrating. It should make you wonder about cryptos, because I can tell you from additional research I had done following that case, that the IRS is taxing people under Title 27 of the Code of Federal Regulations, for activities involving the manufacture of alcohol, tobacco products and firearms and related industrial activities such as mining.

Don’t be so quick to believe that there is some “new law” or “new rule” just because Forbes published an article with lots of misleading and erroneous conclusions. Adding a word to a statute does not create an entirely new taxing statute, or class of tax. The next thing we’ll probably discover is that the taxing authorities want to tax our brilliant, million-dollar ideas, before we even write them down on paper or make any money with them.





Why do you believe that because the IRS changed its “1031 exchange” definition from “property” to “real property”, that it somehow imposes a new tax on crypto-graphic currency? There is no tax on crypto-graphic currency, assets, coins or tokens. However, the centralized exchanges have now been forced to help create the illusion that you owe taxes by producing income reports, such as the “1099”. Your accountant will dutifully include these reports in your tax return, and that is when the “income” becomes taxable, but only because you said under penalties of perjury that the income was taxable. What is being taxed is your gain in the dollar and the presumption is that the 1099 shows you had taxable gains. Even though the burden of proof is now in the IRS, you are reporting under penalties of perjury. Maybe you figured out how to report a loss because maybe you had a net loss from “cryptos”. Wouldn’t you rather avoid the issue altogether, get your money when you want it, and then deal with any tax issues on terms that you normally do, so any gains have nothing to do with cryptos? How about deferring any taxes, even if you do have a taxable gain, into the future for as long as you want?

The exchange is already acting as a trustee by virtue of it holding your private keys. Let me show you what I’ve been doing for 25 years and how we can use this trust association to maintain the correct accounting and avoid any tax situation. I created a special purpose trust in order to solve and prevent any tax problem for those who are still using the centralized crypto-currency exchanges, such as Coinbase. There is no reason to incur any tax liability when using these exchanges; however, it appears that most people don’t understand how to set up their accounts and simply do the same thing they are used to doing with banking. The purpose of this trust is to provide a traditional solution to what might be a new tax situation.

Each blockchain based coin, token or asset can operate in a trust relationship because the nature of the blockchain is an association of computing devices networked together and managed by people. Changes to the manner in which the blockchain operates cannot be changed by a single beneficiary and there must be a consensus with network managers for any changes to take place. The blockchain is already performing the same functions as a trustee because it is a distributed ledger, giving access to the ledger in a real-time basis. This is the perfect organization to function as a trustee; likewise, no law requires anyone using these coins or tokens to do so in his individual capacity. First, control over the asset is already given up because of the system architecture of the blockchain. Second, ownership is already maintained by virtue of the exchange owning your private keys. The public and private keys operate like trust certificates.

You can do your own research, but I just wanted to make this point. Some of you incorrectly believe that “gains” between cryptos are taxable. Let’s use the example of moving “your” Bitcoin from Coinbase to another centralized exchange such as Kraken. And let’s say you funded your Coinbase account with $1,000 of after-tax currency (USD). Assuming your principal doubled in value for example, you send $2,000 worth of Bitcoin to your Kraken exchange account to buy Litecoin (or even more Bitcoin for that matter). Now, let’s act as if there is a taxable gain here and we arrive at the end of the tax period with this gain. The owner of the private key is the de facto trustee, being that you are the grantor who funded the account, and it is the trustee in this situation which has realized the gain. If it is in fact taxable, then the trustee must report to the IRS and remit the proper tax payment. Remember, this is before going back into fiat dollars. This is a very easy test to demonstrate why exchanges between crypto-graphic currencies, tokens or other assets is not taxable. Let’s say you, the grantor in this example, then move your $2,000 worth of Bitcoin back into your dollar account at the bank. There is a presumption of an income tax liability. If the correct accounting were reported, you would have a tax on your gain of $1,000; likewise, if your $1,000 was reduced by 50% because the dollar price of Bitcoin fell, you would be able to claim a loss and maybe even qualify for a deduction, in dollars. Why? Because you received a disbursement from the trust, which is taxable. This is nothing new, like I’ve explained before, the tax has always been there since we began taxing profits and gains, there is no new law needed to collect taxes from crypto-currencies. The tax falls on gains earned from buying low in dollars and selling high in dollars.

Let’s talk details. The trust relationship I set up here is irrevocable. It is a trust relationship that is not incorporated and does not derive its existence or function from any statute or legislative enactment. It is simply a business trust organization that is managed for the benefit of one or more beneficiaries and for the purpose of earning profit and gain. By definition, this is a structure that is not merely exempt from taxation, it is immune.

The trust is formed inside of the operating agreement written for a limited liability company (LLC). The LLC is the beneficiary and its members act as the trustor or creator of the trust when they contribute or exchange their fiat currency for a blockchain based asset. The trust is introduced into the operating agreement as a clause that defines a specific class of property to be managed by the LLC and the manner in which it will be managed. The operating agreement must be amended to include the specific terms and include the Blockchain Tax Immunity Trust into the agreement. This has the same force and effect as enacting a law. The trust provision in the LLC becomes the law of the business and creates two layers of protection, one given by the trust relationship and another given by the manner in which a properly written operating agreement provides protection against charging orders (writs of attachment), tax deferment and pass through attributes for property rights.

The trust does not require any tax identification number (EIN, etc.) and does not require any bank account. You continue using your same exchange accounts and with this structure, you open a new bank account for the LLC to act as beneficiary for the trust. You then fund this account to purchase crypto-graphic coins, tokens and other assets, but maintain those assets as a managing member for the beneficiary. You can even move your crypto-graphic holdings from your personal wallet to the beneficiary’s wallet. Any tax reports, such as a 1099, are then made in the name of the beneficiary with its tax number. Because the beneficiary is a tax deferred structure, neither the IRS nor any state look to it for the payment of a tax. And because the intent of the trust is to make a profit from this activity, the trustee is not subject to any tax either. Can you imagine the IRS trying to audit the blockchain? It’s already audited, every moment, in real time. Can you imagine the IRS expecting the blockchain to file a tax return? It’s not subject to any taxes, at the very least, because it is the trustee for an irrevocable business trust organized for the benefit of beneficiaries for the purpose of earning profits and gains. By definition, it’s not taxable. The only situation in which a managing member would cause a taxable event, would be if he reached a consensus with the other managing members under the operating agreement, to disburse fiat currency from the beneficiary to himself, in his personal, individual capacity. Of course this is entirely unnecessary and can easily be avoided.

If you already have an LLC that you can or are using with an exchange, I will need to see a copy so that I can make the appropriate amendments. If you don’t have an LLC and want to easily avoid a taxing situation with an exchange, I can register an LLC for you in the appropriate jurisdiction. If you’re in California, I prefer to avoid that state if at all possible. Once we have your new LLC in place, I will provide you the documents you need in order to open its bank account so we can then include the property classification and trust clause, and then I will be able to provide you with a completed Blockchain Tax Immunity Trust.

To order your Blockchain Tax Immunity Trust, send an image of your check payment, or check information including the name of the account holder, check number, amount of $275, bank account and routing numbers from the bottom of the check, to my secure email account [email protected] or via Skype to my ID “johnjaysingleton”. The payee is “Georgia Capital, LLC”. Be sure to obtain confirmation from me before sending via Skype so that we know you have the correct one. If you also need a limited liability company because you are not already using one, include an additional $497 plus state fees with the amount in your check. If you don’t know your state fees, just ask via email or Skype.




Comm. by John Jay Singleton



Chasseur was a Baltimore Clipper commanded by Captain Thomas Boyle, an American privateer. She sailed from Fells Point in Baltimore, where she had been launched from Thomas Kemp‘s shipyard in 1812.[1] On his first voyage as master of Chasseur in 1814, Boyle unexpectedly sailed east, directly to the British Isles, where he harassed the British merchant fleet.

Boyle sent a notice to King George III by way of a captured merchant vessel that he had released for the purpose. The notice, he commanded, was to be posted on the door of Lloyd’s of London, the shipping underwriters. In it he declared that the entire British Isles were under naval blockade by Chasseur alone. This affront sent the shipping community into panic and caused the Admiralty to call vessels home from the American war to guard merchant ships which had to sail in convoys. In all, Chasseur captured or sank 17 vessels before returning home.

On February 26, 1815, just off HavanaChasseur took HMS St LawrenceChasseur carried 14 guns and 102 men, while St Lawrence carried 13 guns and 76 men. The intense action lasted only about 15 minutes, during which St Lawrence suffered six men killed and 17 wounded, several of them mortally. (According to American accounts, the English had 15 killed and 25 wounded.) Chasseur had five killed and eight wounded, including her captain. Both vessels were badly damaged. Captain Boyle, of Chasseur, made a cartel of St Lawrence and sent her and her crew into Havana as his prize.

LM. Schr. 356 T. 115.6, 26.8, 12.9, B: Balto. 1812, 52 M. 2 long 12s, 8-12pd car. C: Pearl Durkee, L: John Ross, 0: John Hollins, John Smith Hollins & William Hollins, & Michael McBlair. Com. 2/23/13. Mutiny prevented voyage. P. 148 M. 6 long 12s, 8—12pd car. C: Wm. Wade, L: Chris. Bartling, 0: George J. Brown, John Clem, John Craig, Jesse Eichelberger, John Franciscus, Lyde Goodwin, John Smith Hollins, Ferdinand Hurxthal, Thos. Kemp, C. Newhouse, Wm. Penniman, C. Raborg, Nicholas Stansbury, Jeremiah Sullivan, Christian Keller, Francis Foreman, Thos. Shepherd. Com. 12/24/13, P. 150 M. 16 long 12s, C: Thos. Boyle, L: John Dieter, 0: Some of the same, plus Boyle. Com. 6/19/14 ( New York)
(Wade)—11 (Boyle) —25
Ann Maria, schr, burnt (Lic) Adventure, ship, retaken
Britannia, brig, Beaufort Alert, brig, burnt
Galatea, ship, New Bern Amicus, brig, sent in
Harriet Elizabeth, schr, sent in Antelope, brig, retaken
Joanna, polacre, burnt Atlantic , brig, retaken
Lark, schr, retaken Carlbury, ship, retaken
London Packet, ship, Hyannis Christiana, sloop, cartel
Martha, sloop, cartel Commerce, brig, Charleston
Melpomene, brig, Newport Corruna, ship, Wilmington
Miranda, schr, burnt Eclipse, brig, New York
William, schr, burnt (Lic) Elizabeth , schr, burnt
Favourite, sloop, burnt
Fox, schr, sent in
Harmony, brig, cartel
James, ship, sent in
Marquis of Cornwallis, brig, cartel
Martin, ketch, burnt
Mary, schr, sunk
Mary & Susan, ship, Savanah
Prudence, brig, burnt
Reindeer, brig, sent in
Speculator, brig, cartel
St. Lawrence, schr, HBM, sent in (US)
Theodore, ship, retaken







Most people live out their lives and never buy any assets. I think this may be attributed to people getting their basic costs of living needs met with a job and saving some money, such as in pension fund. A house in which you live is not an asset, but a house that you own and rent out to a tenant can be an asset. If managed properly, it will pay you a regular income, that is an asset. Your car is not an asset, but a collection of antique cars that people pay admission to come and see may be an asset, or a fleet of taxis that you lease out to taxi drivers may be an asset. Just because you can sell something does not make it an asset. An asset provides regular income for the asset holder, hopefully it is positive income (profit). By implication, everything else is a liability.


Yes, that work of art you bought at the auction for $7,500 and had appraised for $10,000 is still a liability because it’s not generating regular cash flow, good job on buying low however. Owning assets or the rights to cash flow from assets is how you acquire and build a net worth. While most people know how to acquire long term debts for college, homes and cars, they have no clue about buying assets. If you create a scale on buying assets, the best assets are those for which you have no liabilities for ownership, but derive the benefits from the cash flow, and make infinite returns. That means none of your own “cash in”, but you get “cash out”, profit. These are the kinds of deals I like the best and it’s becoming easier and easier as we have developments such as the Internet and blockchain and cryptographic currency. That’s at one end of the scale.

At the other end would be something like, you get an option on a commercial real estate site, and draw in capital from investors, develop some retail space and begin making 7% on your money in about 5 years. It’s still an asset, and might be worth more cash than the infinite returns deal, or maybe not. Every deal is different. But how would the average person who has never bought an asset or never really considered this subject until now, go about “acquiring” assets?

First, you need a way to own the asset, or manage the cash flow, or hold title to whatever it is you want to buy. I’ll start with something that most of us can relate to, let’s buy that coin operated car wash in our town. That is very close to a commercial real estate deal, but without the commercial lease agreement, presumably, and without employees, these are my specifications for this example, especially if you are just getting started. The car wash is actually a real estate deal and those have publicly recorded titles, so you would use a corporation to receive the conveyance of the title as part of the sale.

Second, if you don’t already know what you want, you have to go shopping. Either you can do this yourself, or through a broker or some other agent that can help you find the deal or deals you want, where you want them.

Third, you need to be able to make an offer, it should be in writing, but this is not required.


Fourth, you should always look for financing, even if you pay cash, you will still want financing at some point so you can make the best returns on your money. Here is where many people run into a brick wall. They either believe they don’t have enough money or cannot get the financing because of their personal credit score. What most people don’t know is that most of these types of deals for example (the car wash) are not usually done with personal credit or lots of cash.

Imagine buying an asset, such as retail zoned real estate in your town, on credit and with little or no cash of your own. Yes, it can be done, and once you see how this works, you will want to do this all the time even if you have enough cash to just buy the property without any financing. Always risk the least amount of your own cash on a new deal.

Let’s take a closer look at financing the purchase of an asset. First of all, you are buying an asset on credit, much easier than buying a liability based upon the fact that you have a job (such as your home). The first consideration for lending should always be with the seller. Ask yourself, if the seller is selling his asset, something that is paying him on a regular basis, why is he doing that? This information comes from a discussion with the actual seller, not his agent. Let’s say he has a good reason for selling, and that the asset is really a good deal, the seller should be willing to “bet on himself” or the “profitability of what he’s wanting to sell you” by financing it to you. But maybe there are so many buyers that he won’t consider it, this is an important consideration.

The second consideration in getting financing is to understand that the collateral for the financing is the asset you are buying, it should be paying for itself. It’s not like you are buying a house and your ability to make payments depends upon you keeping your job. It’s a much better financing situation to buy a business than to buy a home. Remember that I explained previously, an asset can be owning the thing that pays you, or it can be the actual cash flow coming from the asset, whether or not you hold the title. In fact, it makes more sense to buy a business or two and use that money to offset the purchase of a home or finance a liability.

Let’s say our car wash generates $50,000 of gross income annually, and let’s say that a fair asking price is $50,000, the asset’s annual income, and this assumes that the real estate comes with the business, same owner (doesn’t have to be though). You may never find a deal like this, but I’m only using this as an example. Estimate your financing based upon a short term debt, such as 3 to 7 years. And let’s just be optimistic that the seller is so excited about financing this deal that he’ll be jumping for joy upon receiving your offer.

It’s already generating a monthly income of $50,000 / 12. You will want your monthly payments to be a fraction of this amount, after all, you want positive cash flow and you still have to factor in operating costs (taxes, insurance, materials, supplies, maintenance, etc.) If your monthly gross is $4,166, structure your financing for one-third of this, or $1,388 and get a three year note. You’ll have some wiggle room for the interest rate by doing it this way.

There are several ways of managing the title during this transaction, the easiest one is likely to be with an exclusive options contract where the seller gives you (or sells you) an option to buy (take the title) at some point during the life of the note, or upon full payment of the note. Let’s say the seller of your local car wash agrees to sell you his car wash, under the provisions of an options contract in which you take the title after the note is paid in full, three years from now. Within 30 days of the closing, you will be keeping about 2/3 of the $4,166 or $2,777. This will be your new income, and you didn’t have to go begging to the bank or use your personal credit. Instead, you would have probably had to show the seller that you had solvency in a company, which only takes a few months to establish.

I’ve just described a very simple and boring transaction that created nearly $3,000 a month in new income for you. Let’s step back for a moment and talk to all of you who believe you would never get “owner financing” for a moment. If the seller won’t carry a note, maybe there are others whose business it is to only carry notes? Yes, of course there are. You would then need to find a third party lender, and in some cases you might prefer this. If the seller insists on doing it this way, then he will need to transfer the title at the closing. Or, maybe the seller will finance it (second position) if your lender contributes 25% to 50% of the purchase price, there are many options.

In this case, the title holder will be your company, that will have shown its solvency to the eventual note holder or lender. You don’t want to be the personal guarantor on this, where your personal credit is being used. These deals can always be done using the company’s credit, even if this is the first asset being acquired by the company.

Who would hold a note on commercial real estate with a history of positive annual cash flow of $50,000? You will find many lenders for this. I would suggest that your best options do not include any traditional banking organizations. You want to look for cash or hard money lenders, let those organizations source the lender for the loan they are giving you, that’s how it works. Where would you find these? I would start with a business broker, maybe it’s the same broker who helped you find the deal. He or she can probably connect you with real loan money, hard money, again, not bank “funny money”. I use the term “funny money” because you don’t want to get tied up in loan contracts with the evil banking system since you are not in that business, let someone else do that, you get a hard money loan and let that lender deal with financing of his loan portfolio.

You might also find equity financing, that is, someone with cash who doesn’t want to be a lender, but wants a share in the business, in the equity of the deal. These are also very good ways to get financing, just write your contract so that your equity partner has a clear exit strategy or includes a buy-out clause so the deal has the most flexibility for everyone. I would not suggest selling actual shares or even advertising for the sale of shares; rather, I would look for a partner who brings cash to the table and his rights and interests are expressed in an operating agreement and or a joint venture contract. You don’t want to be under the purview of selling securities; however, once you become a little more sophisticated, you may want to look into “Reg D financing”, I’ll save that for another article.

Notice that so far, I haven’t mentioned anything about writing a business plan or a marketing plan, or even a financing plan. These are important and you should have them, but don’t let not having them prevent you from moving forward. Like I’ve explained, you want to show solvency in the business. You can do this with a balance sheet and income statement. Once you form the company, have a bookkeeper create your balance sheet and income statement, even if you show only the $100 you used to open its bank account, that is where you begin. The next step may simply be you depositing an additional $100 a week or month into the business bank account as a contribution for your interest in the company. This creates a record of regular cash flow, it doesn’t have to be millions of dollars, just regular.

Consider additional ways to create funding, such as grant money. I would start with finding a grant writer to prepare a grant application and then shop it around for a grant. It doesn’t have to be substantial, just get one grant and it will do wonders for your future ability to attract more capital. Along with finding a grant writer, contact the Small Business Administration to review what is required for a grant application, just so that you know, even though your grant writer will be working you through that process. The SBA is not the only place to get grants, that’s why I suggest starting with the grant writer, and a grant broker, but only use the SBA as just one possible source and a way to learn about the process. is also good place to start when looking for grants. There are professional grant services such as eCivis, Inc. This one provides a suite of Web-based software applications, along with grant-writing and grant-management services. is the federal government’s e-portal for 26 grant-making agencies. The website is a central storehouse for information on more than 1,000 grant programs and provides access to approximately $500 billion in annual awards. You may also want to get a copy of Grant Writing for Dummies, 4th Edition (John Wiley & Sons, 2011).

You may also find that getting a short term loan from the SBA would be beneficial in getting your venture going faster. Remember that you want the business to get the financing, not you personally, never disclose your personal credit information for a business loan, but before you look at getting a business loan from the SBA or bank, you will need to create, not only a balance sheet and income statement, but a real business credit file with Dunn & Bradstreet. There are many services that can help you do this, even some that guarantee a certain amount of unsecured credit within a short period, such as six months. That should be one of the things you do in the first year, and before you submit any traditional loan applications. I’ll discuss this along with business brokers in more detail.

The SBA is a good source, but don’t overlook state and local sources for grants. It will be useful to consider the economic development office of the state, county and city in which your business operates. These grants are often less restrictive than federal government grants and it is likely there is less competition.

Another good source for small business loans would be a company called Start Up Nation, at Let’s review the process of setting up business credit before we go any further. I didn’t want you to think that your only financing source depends upon a high credit score, I’d rather you think of it as just another tool. I’ve done many lucrative projects with no credit whatsoever, so don’t let this prevent you from getting the assets you want.

Business Credit

Once you have a corporation registered, you want to be sure it has a business location as its address, maybe it’s a virtual office space or maybe it’s your barber shop because your friend works there and his boss doesn’t care if you use his address as yours for a short time, or you really do have a business location for the company address, not just a mail box. You can also use a mail box, but your main address should be a business location. The next step is to get that business information listed in the 411 directory, this can be done online and there are specific instructions to help you.

You’ll want to review Keep in mind there are services that will charge you a fee or monthly to list your business, and some of them may be really useful, but I’ve found that it’s enough to list your business yourself, for free.

If you can be patient, you should receive a letter from Dunn & Bradstreet within about 60 days of registering on the 411 directory, welcoming you to the service and giving you an account number. The objective here is to sell you business services, and these are not required in order to get a business credit file, even though you might find some useful. I don’t recommend turning down D&B offers for services, instead, just explain that you have to discuss them with your partner and ask for additional information and explain you will call back. In the meantime, you will have a D&B account with no credit score. D&B is actively looking for new businesses and once you get on its radar, it will create an account for you. The next move is yours, as you will eventually need a credit score. That takes a little more planning and you have to understand some basic concepts.

You will need four “net 30” accounts, there are were you buy supplies for example, on store credit and pay the bill when it arrives. You don’t need 5 or 6 and 2 or 3 would not be enough. The trick is to buy things you already need, such as office supplies, and be sure that the retailer reports to your business credit file and never use your personal credit information to obtain the store credit with the retailer. Sometimes you have to call a different office or search online to get the actual business application that does not require any personal guarantee, never settle for being the guarantor, ever. Next, pay the bill immediately, don’t wait for the full term, in fact, you may want to call in advance of receiving the bill and pay within 5 days of using the credit. This will result in a D&B creating an actual credit score for your business’s use of credit. The scores range from 0 to 100, and your first score may be above 90. A higher score is not better. You want a score that shows you are able to use debt and manage the business properly, so that score would be around 75 – 80. The more debt you have and the better your balance is, the more creditworthy your company becomes. It’s because your company is using debt to increase it’s net worth. People can’t do this because typically consumer loans are based upon limited income, wages, and those don’t go up with more debt.

The next step is to take unsecured loans for about $20,000 to $50,000 within the first six months of starting your business credit profile. It’s important that the lender reports these accounts to your D&B file, you must confirm each time, do not assume. Once you do that, it’s then just a matter of managing your company, but again, you should be able to obtain financing just by thinking through a deal and not be totally dependent upon asking an institution or bank per se.

Business Broker

I mentioned a business broker earlier. What can a business broker do for you? If you are new to this “business” of buying assets, it’s best to start with a business broker. Tell him what you want, what you are looking for and ask what will be needed in terms of your company’s financial records, in order for the seller to even consider your offer. This will be such a great education, better than taking on huge student loans to get your MBA.

I talked with an MBA student one time. She said she was studying how Star Bucks runs its business, so I asked her how it does. She could not answer me. What’s more, I asked her the general question, how would she create a corporation, the main tool of business. She couldn’t tell me. So I suggested that if she really wanted to know how a business operated, including Star Bucks for example, that she get together with her classmates and form a corporation and then get into a licensing deal with Star Bucks (which is how that works by the way, no franchises). I think she was mortified at the thought, but this is my point, it’s not difficult and if you’re going to study it, you should do it, that’s the best way. I remember presenting a thesis to my college professor about how it would be a good business to teach elementary school children how to do high school algebra. I thought I was so smart, so I was surprised when she wasn’t that impressed after reading it and suggested that I actually go out and do it. So I did, and I made lots of money, and then she was impressed.

Business brokers will help you with pricing the business with a professional valuation and then drafting an offering summary, sometimes called a confidential business review. This piece becomes one of the most important marketing tools for the offering, and is provided to prospects only after they have signed a confidentiality agreement and been qualified by the broker.

Marketing the business to the widest possible audience while maintaining strict confidentiality. This is one of the important distinguishing differences between business brokers and real estate agents. Real estate agents put a sign in front of their properties and typically without the need for confidentiality, advertise widely the specific location. Business brokers are trained to maintain strict confidentiality. When you contact the broker, he will research his database for the deal that works for what you want.

Your broker will also facilitate meetings between you and the seller. When it’s time, he can also writing an offer to purchase the business and be involved in negotiating between both parties. Your broker can work for and represent only you, or work for both parties, it depends on the contract. Either way, he can also facilitated the due diligence investigation, as most offers to purchase are made contingent upon a due diligence finding. And as I’ve mentioned earlier in this article, your broker can assist you in obtaining financing. He may not be as creative as what I’ve described in this article, but that is your job after all. Your broker can help you through the entire deal, even scheduling and facilitating the closing of the transaction. This article would not be complete with at least a brief review of crowd funding.

Crowd Funding

This is a way to get funding from a large number of people who like your idea, but may not necessarily know much about business or being a lender for profit. Crowd funding allows the average person to benefit from your ideas with low risk and avoids the need to sell securities or do any public offering.

While you may have planned a marketing and advertising campaign for selling your actual product, you will need a marketing and advertising campaigning to raise money through crowd funding. The idea of “its not what you do, but why you do it,” really hits home here. By focusing on a bigger purpose, the driving force behind a brand, project creators will be able to create a unique community of like-minded individuals. Each campaign is set for a goal amount of money and a fixed number of days. Once the project is launched, each day will be counted down and the money raised will be tallied up for visitors to follow its success.

Instead of traditional investors, crowdfunding campaigns are funded by the general public. Typically, most successful startup fundraising efforts receive about 25-40% of their revenue from their first, second and third degree of connections. This could include friends, family, work acquaintances, or anyone that the owner is connected to, including their second and third degree connections. Once a project has seen some traction, unrelated consumers start coming out of the woodwork to support campaigns they believe in, but you must have a story that appeals to people, such as for the car wash, your business is involved in developing the community (sounds lame, but you get the idea). You may want to launch the campaign with pre-arranged contributions that are made immediately with the launch.

Here is a list of the top 25 crowd funding services,

This is a very cursory review of how to buy assets, but the references should really help you get a better view of how it’s done and hopefully, why you should buy assets, at least one new asset a year.


Over the last 25 years I’ve been providing clients, friends, partners and subscribers with little pieces of the whole picture on how to live well without using any social security number. Now I realize that some of you are committed by having disclosed or associated a social security number with, at least, a driver license or professional license. The same is true of myself; however, I’m going to show you how to live well without associating a social security number that was assigned to your legal name. This will especially apply to my anticipated following of the “GenZ” or “iGen” demographic, people born between 2000 and possibly 2025. I know this time period may change somewhat, won’t matter. Let’s understand a few things about this social security number scheme. It’s a Nazi system of numbering people, it was described in the Bible, and so what. It was dredged up into our legal system by Eleanor Roosevelt, FDR’s wife, during his term as president. If you read your history well enough, you’ll discover that FDR was responsible for “The New Deal”. It was a collection of congressional acts, executive orders and federal regulations that re-organized the bankruptcy of the United States under Title 5 USC §552(a), otherwise known by two names, The Government Reorganization Plan or by the Administrative Procedures Act. I’ll leave the why and how for a later time, let’s focus on this numbering scheme.

First, no law requires anyone to obtain or use a social security number as a condition of living, working or even voting in any of the fifty states or the United States. If I can believe my congressman’s written word, I have a list of many letters from congressman over the last thirty years who have so stated.

Secondly, even if you have one, you are not required to disclose it, even on a tax return. This is very clear in 26 CFR Part 301.6109-1(c) “Identifying Numbers”. It states that only someone paying you must ask for the number. How many times have you been asked for a social security number when you are paying the one requesting? Federal regulations apply to federal agencies, not people, but this regulation only requires an officer, employee or elected official of the federal agency to request the number. It does not require anyone to actually disclose a social security number, even you are asking for federal benefits (Privacy Act of 1974). If the employee is going to pay you and you refuse to give the number, the regulation requires the employee to lie to you and tell you that disclosure is required. If you still refuse, the employee is then required to submit an affidavit so stating along with whatever forms on which your social security number was going to be reported.

Third, the social security number applies to officers, employees and elected officials of the United States; however, some of the states’ legislatures passed laws requiring the disclosure of the number for state privileges such as getting a driver license. I’m not sure if the Supreme Court would have upheld this or if anyone has ever challenged it, but it is not embedded into our society. Its use has become so pervasive that to stop using it literally requires a series of lifestyle changes, the degree of which depends on how much you want to rid yourself and your life of this fraudulent scheme. Let me tell you a bit more, just to get the blood pressure up if it’s not already. The fact that you are using this government number and associating with what you do throughout your life, allows a handful of elite individuals and organizations to move billions of dollars in the form of securities through your social security account everyday, and enables bond holders to name you as the guarantor and collateral on debts and security they create for their own profit. Yes, you are a slave if you are associating this tax number with what you do throughout your lifetime and if you got your children a social security number and claim them as a deduction on your tax return, you’ve done the same to them before they were even of legal age. It’s a form of human trafficking.

The number itself is 9 digits; therefore, there are 10 combinations per digit, for a total of 10 to the 9th exponent of combinations, or 1,000,000,0000 (a billion) combinations. The program began in 1933 or 1934 and apparently, no number is permitted to be issued more than once. We now have one-third of a billion people living in the United States and easily that many social security numbers being used by everyone, except a few people like myself. Go back 40 years and that’s another one-third of a billion numbers being used. Then consider how many 9 digit tax numbers have been assigned to illegal aliens, trusts, corporations, estates, etc. We are well beyond over a billion numbers in use, not to mention that blocks of them cannot be used as they are reserved for government purposes.

The way the IRS and Social Security Administration avoid confusing files as they are indexed by social security or EIN or TINs, is to use the first four letters of a taxpayer’s last name and concatenate them onto the end of his SSN. For example, William B. Smith’s SSN is 666-00-1234, so his individual master file at the IRS would be 666-00-1234SMIT, a total number of combinations equal to 10 to the 9th power times 26 to the 4th power, problem solved.

I believe the best way to explain how to live well without a social security number is to give you actual case examples of how I’ve done it and how I’ve helped others do it. In my case, it’s plenary, including every aspect of my life. Like I said, it is a lifestyle change, and I can’t expect everyone to simply adopt all of it overnight, so I only focus on one immediate situation.

At Birth

The first example is how to bring your children into this world, with a traditional birth at a hospital, without a birth certificate and without any social security number. I did this five times for my family. I even brought my wife here from Europe, legally of course, and she was never forced to get a social security number. Here’s how you do it. We all know it’s an exciting time, having a child. We get over nine months to prepare and in that time we get to decide on a name. Remember that a name is what you call yourself, not necessary a series of letters on a birth certificate or government document. The last time I checked, we still have the right to freedom of expression, even without the Constitution. In any case, after that wonderful moment when you’ve given birth to your new baby, and all of the nurses and doctors congratulate you, a short time after, you will receive an uninvited visitor from the Department of Health. Let’s call her the tax collector.

The tax collector can only collect taxes on the new child with the help of an informant. Who is the informant? It’s your mother. But you don’t have to be an informant because your child is not a new taxpayer, and he is not collateral for the national debt, nor is he an article of commerce. But I prefer to be kind and courteous. So when the tax collector comes into the room, uninvited, with that fake smile and a clipboard, and asks the informant to inform by telling the name of the new baby, you simply respond by saying something like this, “You know, we just cannot agree on any name at this point, not sure when we will.” and just leave it at that, until that awkward feeling comes and then continue to hold, and watch the tax collector simply leave. Now the tax collector may try to get you to come up with a name right then, like I said, leave it at that, change the subject, ask her to leave because you’re tired, etc. And say it with a smile.

The trick here is to never use the baby’s name at any time during your stay. I would say it’s best not to use your legal name when you check into the hospital in the first place, but that would be very difficult for many people, especially with insurance, etc., and it’s not necessary. The tax collector will either not prepare any birth certificate, or will prepare one with the first name being “Baby” and if it’s a girl, middle initial will be “G.” and a boy “B.”, and then use the mother’s last name as the last name on the birth certificate. That’s okay, remember, it’s not yours or your baby’s, unless you claim it someday and use it for something. The reason we claim ours is to get passports but I have discovered that this was not necessary. We are just talking about the social security number though. Because you did not give a name, inform, the tax collector will not file an SS-4 in your child’s behalf. This is illegal, or it should be, but the trend over the last 20 years is for the tax collector who prepares the birth certificate to also submit an SSN application.

Whenever you’re asked for a social security number for your child, or given a form, use 000-00-0000 in place of any number. Do not use all nines or anything but these zeroes. If anyone asks, explain that he or she has no number and no law requires you to get a number for your child. You can also cite the regulation from earlier in this article, I’ve never had any problem with this and it usually makes for an interesting conversation.

Mobile Phone

Next I’m going to show you how you can get a credit file without a social security number, but keep in mind that you may want to do as many things as you can even without a credit file. On the mobile phone, apply for a two year contract with no credit file and no social security number. Use all zeroes on the application. There is a chance you will get the contract, or maybe you’ll have to make a large deposit, like 25% in order to establish a file with the carrier, but once you do, it’s good for as long as you pay the bill timely. If this is a problem, don’t get a two-year contract, use a month-to-month service and buy the phone, there are many options. Many people believe they can’t do this before they have even tried. Try getting a mobile phone contract or the service you want using the zeroes on your application, see if that works or if you need a larger deposit or to pay for the phone, the deal can be made, and don’t get frustrated in the process, it can be done. I’ve done it many different ways and many people I have helped always get what they want.

Renting a House

Renting a house is probably easier than renting an apartment and over the next few years it will become easier to find all kinds of rental deals and owner financing and lease options, without using a social security number, but more importantly, without using a credit score. Some markets are more difficult than others, but for the most part, you will be able to find a house you like and sign a lease agreement without a social security number. The difficult ones are usually property managers or corporate owners, they have strict policies that the employees will not be willing to dodge in order to get you into the lease. This becomes a numbers game, instead of looking at four deals and choosing one like most slaves with good credit, you might need to look at 20 deals before you choose one.

You want to talk with the owner, show him your bank statements or whatever will make him satisfied that you can pay and will pay the rent on time. Come with written references from previous landlords or employers or neighbors. Offer to pay two or three months’ rent at signing, plus deposit. We did this in a hot market, but my wife showed up the minute the first showing began and spoke with the owner. After a very nice conversation about nothing really important, the owner told my wife that she seemed like a nice person and that she wanted to offer her the lease, and that was with about four other prospects standing next to her. We discussed it over the phone for a few minutes and then accepted, and when it came to time to sign, the owner didn’t even care if I signed the lease. That was over a year ago and we’re still here on month-to-month terms. This is one example of fifty or sixty we’ve done over the years.

Buying A House

Would you believe that renting an apartment without a social security number or a credit check is more difficult than buying a house the same way?

You’re not going to get a traditional bank loan and I don’t recommend that as the best form of financing. Instead, you’ll want to seek financing from the seller using an owner financing deal or more specifically, a lease with an option to buy contract. I’ve done this many times and worked with people in many situations to do this. It does help to determine what the seller needs (not wants) before you make your offer. Maybe he just really needs $10,000 now and can live with that and give you short term financing. In the next few years, you will find this deal to be trending, but many investors have used it as a staple over the last thirty years, at least from what I’ve seen.

Agents and attorneys are usually the type of people that don’t know how to market themselves and rely on their professional status alone, as a substitution for competence, in other works, they usually screw up deals. Get around them, get them out of the way, or just minimize their involvement. You want to talk with the seller, find out what he needs. Maybe you will need to make a larger down payment, or ask for a short term owner financing deal, or include an options contract. Maybe you can find someone to match your funds with the down payment and then buy him out later. And you don’t do this because you have bad credit or no credit, or don’t want to use a social security number; you want to do this because it’s the way we are supposed to make deals, without interference from our government or other creditors or the corporate system. Set up the deal so that everyone’s interests are protected and you will get it. Yes, it will be more difficult in a popular market, where listing are short term, but the trend is a deflating market, so your time is coming.

Another really good reason to avoid putting your name on the title to real estate, and use an options contract for this purpose, is so you don’t “go down with the ship” when the market tanks. You can exercise your option for the fair market value when the seller is screaming for you to heal his pain as he watches the market dive down each week.


How do you get credit without a social security number? I decided to explain this to you now, it will become very useful, but I’m going to caution you not to replace your addiction to personal credit with this new understanding.

The social security number has a certain format and the manner in which the numbers were generated including groups being assigned by state, and then in sequence. The algorithm was developed by the Navy, but it’s not important that you understand the details here. Basically, because no law requires anyone to have a social security number, and establishing credit does not require a social security number, you simply need a nine digit number to be associated with your name and address and manage it in a way so that it will not be merged with your previous file that has a social security number, or anyone else’s for that matter. Sometimes this happens, so you just have to know how to correct it and manage that file just like you manage any other financial matter. You can do this because it’s legal and because you are not cheating or defrauding anyone. Keep in mind however that if you use this technique to cheat someone, or commit a crime, using this type of number for your credit may be considered an element of the crime.

You would not be using someone else’s number intentionally, as everyone’s number is already being used by someone or something else, at least once. So again, just be sure that the person who was issued the number you are using for your credit cannot have his credit file merged with yours, and this is easily fixed if it ever happens. It can simply be disputed for accuracy. You will never need to show a social security card to do this, and if anyone asks, you can show other records proving that your name is what you say it is and by implication, this is your correct credit file number.

Credit Cards

The most common way I’ve done this over the years is to simply create a new credit file without the assigned social security number, build the credit and then use it just like you did the first time. It’s then very easy to get unsecured credit cards, just like you did when you first started getting offers in the mail.

Bank Account

Once you have a credit file without a social security number, and have verified that the number has not been reported to the death index, you will be able to open a bank account with yourself as a signer. You just won’t be able to show a social security card with your name and that number, and don’t try to make a fake one. If this is a deal breaker for the bank, find another bank.

A more sophisticated, and slightly more costly, way of getting access to a bank account is to have an attorney on annual retainer where he signs for you as trustee for a trust he’s written for your banking purposes. Explain to the attorney you don’t use an SSN and are frequently out of the country and you need “someone you can trust” to sign on the account. Some attorneys will not be willing to do this, but some of them provide this as part of their service, you’ll have to shop around. And, no, you cannot trust any attorney; however, they are bonded and you can require additional bonding and avoid giving them access to much money at any one time and you should be fine.

Buying A Car

Most of the situations I’ve solved were for people who needed a car for practical reasons, driving to work, grocery shopping and school. In nearly every case I’ve recommended simply saving the cash and paying yourself regular payments until you have more than half of what you need for a car. Buy a reliable used car from a local dealership. See if you can pay for it with the cash you’ve saved and then a short term loan, say 24 months, and drive today. There are many variations of this, but we are heading into a time when there is an enormous glut, especially in the used car market, and many dealers will take this deal. Don’t be desperate, there is a deal somewhere, if you are not comfortable with one, just walk away. But you can buy a car without a social security number and without credit. My mother did something like this once time, she bought a Toyota Camry, and her credit was the worst, but because she made the payments on time, the dealer sold her one or two more of the newer models over the years.


I like to open utility accounts in several different ways. I’ve had to figure this out over the years in order to solve specific problems, such as people needing to hide for fear of their lives, or who were the target of an unfair collection that precluded them from getting a utility account like most people.

If you are not going to give your credit file information, the utility company will try to coerce you into disclosing it, but ultimately, you will simply have to make a larger deposit. That’s the simple example. But let’s take this a step further, what if you wanted a utility account in a fictitious name? It’s about the same, larger deposit, and either avoid producing a copy of your government identification, or use an acceptable form of identification that you can create and will not be considered a “phony ID”, such as a “W-2 statement” or an International Driving Permit” (IDP). You’ll have to ask me about this because it’s not common to find a service that will provide those without a driver license from some government. Another legal way to make it appear as if your name is something other than what appears on your driver license, birth certificate or old credit file, is to set up a corporate (I prefer an LLC) bank account with a “dba” in that fictitious name, and then get a debt card with only that fictitious name on it, as the business name. For example, XYZ Company, LLC dba “Bill Smith”, and Bill Smith shows on your debit card for the account.

Car Insurance

The insurance company will act like a bank, so if you can open a bank account with no SSN, you can get car insurance in the same way; however, I like to take it a step further. It’s not for everyone though, as I’ve said before, you can have your privacy, if you have the stomach for it. I prefer to carry my own car insurance. I set up a company and created a balance sheet for it along with an annual insurance card that I print each year. This is known as “self insurance” and in Florida it has a code “11111”, so that appears on my card and both my wife and I are covered under it. Assuming that statutes apply to people for a moment (don’t want to get too far off topic), the law does not require you to have insurance and pay an insurance company regular premiums and then be liable for whatever someone can sue you for; not at all, the law only requires that you carry with you, “proof of financial responsibility”. And while you really should have the ability to pay if you are responsible for damage and injury, no police officer on the scene is going to audit your balance sheet. He’s just going to accept your insurance card at face value and do his job.

But this is very basic, only comes into play if one of us is found to have injured someone and has to pay. We have enough liquidity on the balance sheet that we could pay, but we would never pay $1,000,000 for example. We only have enough to pay up to the statutory requirement, $40,000. And if we did that, we’d have to replenish the balance sheet to be considered having “financial responsibility” once again. Additionally, if someone scratches your car, steals it and it’s never recovered, or you total it yourself, your company is liable, cash out of pocket. I’ve done this for twenty years without any problem, and I’m a careful driver and so is my wife. I’m betting that if I’m in a wreck, it’s going to be the other guy’s fault and his insurance will pay. You still have one more serious concern however.

What happens if you get into a crash, it’s clearly the other guy’s fault and either he doesn’t have insurance or his policy won’t cover your injuries and you are out of work and in the hospital for months? Getting an auto policy for this reason alone would defeat the purpose and what I call the benefits of being self-insured. You will want to research this for yourself as you might be able to get a homeowners policy or some other type of risk management to offset such a risk. You might also be able to get the type of automobile policy that someone who doesn’t own a car could get, someone who is in town only intermittently and rents a car. It’s one of the areas I haven’t explored very much, but worth the time because this is a serious matter, we’re not trying to trick the system, but only wanting to avoid being exploited by the social security number and banking system.

Doctor Visits

Whenever you visit the doctor, chiropractor, dentist, acupuncturist, hospital and these types of health car professionals, you are not only asked for a social security number, but proof of your identity using a “government photo ID”. This is just plain and simple surveillance, but the doctor does need to know your age, within a certain number of weeks at least. Remember that for most of you reading this, you will have used a social security number to get a driver license and you will use that for identification. If you are using a driver license for anything other than a traffic stop, you need an IDP or passport or something without any connection to your DMV, via your DL number. I’m saying it this way because it’s your DL number and/or the magnetic stripe on the back of the card that gives merchants access to your entire DMV file, trust me, you don’t want to know what’s there or you’ll really be angry (think Nazi surveillance state).

In any case, if you’re not yet using a passport, either a United States passport or one from another country, or an IDP, and the service insists on you providing a government issued photo ID, use a color photocopy of your DL. Make this copy before you go to the doctor or have a few copies handy in your car or a paper file in your home. Make a color copy, then use a black marker to redact the DL number and your date of birth. Then make a color photocopy of this redacted version and be sure this information is not visible. Use that as your ID.

If the office gives you a difficult time, use this explanation. I’ve been a victim of identify theft in the past and my attorney told me never to use my driver license for ID except at a traffic stop. He said if anyone insists on seeing my original DL, that I should ask for his data retention policy and a written explanation of what liabilities and insurance coverage the requesting party has for securing my records. Once I get this information, he said I should call him and come to his office to show him how my information is going to be protected by the service that’s requesting it.

You are actually saying, my attorney wants to know how you are going to indemnify my client against any misuse or unauthorized access to his information. Sometimes these people get smart and ask to speak to your attorney directly. Explain this, he said if you are asked to speak to me directly, explain that our retainer agreement doesn’t cover this type of involvement and that his hourly rate is $350 to answer questions and please make an appointment.

You should never have a problem. Sometimes I don’t even do these things. If someone asks for proof of my identity, I just explain that I am who I say I am, do you suspect I’m lying? I also pay for visits with cash, sometimes a credit card, but it should be no problem to use your insurance carrier as well, same scenario.

Remember, I said to redact your date of birth? But the doctor needs to know your age in order to give you medical advice or treat you in many cases. He doesn’t need to know your actual date of birth. So change your date of birth by a few weeks or months, and remember what date you did you with that physician’s office. In some cases, your social security number can be obtained simply with your full legal name and date of birth and some companies will get that information. Yeah, it’s probably illegal, but this system is so broken that even illegal things like surveillance of private citizens by anyone, government, companies, etc. has become an acceptable practice.

This is another reason I use an alias with these services, and I either get around showing ID, or I use an IDP, a debit card or other means to establish that the name I’m using is my name. Most of the time, when asked for a DL or ID, I explain that I didn’t bring it, or it’s in the car. Sometimes, whoever is asking for it, will ask me to go get it. Sometimes I say I don’t have it at all, even if it’s obvious that I drove, then explain I’ll be sure to bring it next time. Sometimes the office forgets to ask me again, and sometimes we have the same conversation, and then sometimes, I don’t need to continue visiting that office because I’m usually in good health. I didn’t give you all the answers here, just plenty of means and references to think through these situations.


If you already used an SSN to get a United States passport, you’re stuck with it, just like with the DMV records and the DL; however, if you have not, now is the time to get a U.S. Passport with no SSN. Just use 000-00-0000 on the application. Yes, there is a notice that you could be subject to a fine for not disclosing one. Keep this in mind, no one using an SSN actually “owns” or “has” an SSN. It’s a government number, that’s why it cannot be revoked or surrendered, it’s not yours, it’s the government’s. Also, the use of the number was never assigned to you, a human being. It was assigned to a security, or evidence of a security, known as a birth certificate and the common label on that certificate which looks just like your name, but it’s in all capital letters. This is not your name, anymore than someone who shares your name is not using your name, it’s his or hers because it’s being used to identify he or she but not you.

In any case, a new federal law was passed in the last days of Obama’s term that required employees of a federal agency known as the Surface Transportation Board to disclose a social security number with a passport application if the IRS had served notice on the agency of the employee’s tax liability that was in excess of $50,000. The Department of State is now trying to use this law to preclude anyone from renewing or getting a U.S. Passport who does not disclose a social security number. Assuming there is a legal mandate, which there is not, as I’ll explain, it only applies to employees of the Surface Transportation Board if their agency has received a notice of the assessment of an unpaid tax liability from the IRS in excess of $50,000.

I’m going to save you the legal research, just understand this. I have found no implementing regulation for this law, meaning even though there might be a statute for this, there is no agency regulation that makes it binding for the employees. And remember, it’s only for agency employees where their employer has been served notice of an assessed and unpaid federal income tax liability exceeding $50,000. Assuming it even applies to them, it certainly does not apply to people who are not employees of this agency. Additionally, this is a due process and right to travel issue. The government cannot restrain or impede your right to travel because “you don’t have” a tax number, or because you didn’t pay a certain tax. In fact, you can travel internationally without a passport, to and from the United States, but that is another subject. If you renew your passport via mail and are denied because of this issue, applying in person should resolve it, just explain that you don’t have a social security number and are not required to go get one. One that thing that is very important, DO NOT sign any additional documents, such as an affidavit stating that you don’t have a social security number. The passport application is already made under penalties of perjury and you are not required to sign additional affidavits, especially those you didn’t write in your own words, restating the same things you stated on your original application. If you sign such a document, after having already submitted a correct and complete passport application, the agency will impose whatever ad hoc rules it wants and you will have no legal defense or protections. Again, I’ll spare you the legal memorandum.

It’s important to remember that if you truly want to do things without a social security number, remember these basic principles, and that with some organizations or individuals, it’s enough to disclose your legal name and actual date of birth, and this can be used to obtain your SSN. Of course it’s not legal, but again, you’re dealing with people that usually thing anything the government does is okay and why should you care if you’re not doing anything illegal.


This article is supplementary to my chapter in The 7 Year Mortgage and Debt Free College Degree published earlier this year.

What does the student loan debt look like on a national scale?

There is $1.3 Trillion, with 44 million borrowers, who have an average debt of $40K each and the default rate is over 11%. What may have caused this debt to become so pervasive? You could say it has been subsidized with the help of the government, just like “Fannie Mac and Sallie Mae” buying up all of the bad mortgages to keep the system afloat, and just like the government health care plan along with health insurance, more subsidies that have caused prices to explode. Anytime you make it easy to go into debt, you get more debt, just like the home appraisal process was abandoned about a hundred years ago, from pricing homes in terms of labor and materials costs together with a builder’s premium, now the home prices have no limits because they are based upon the prices for which other homes are being sold. Student loans are no different.

The United States Government allowed the creation of securities for these student loans, in fact, it went a step further and guaranteed them to investors. They are known as student loan asset backed securities (SLABS – bonds). Because the government guarantees and collects these debts administratively, without having to sue in court (like the IRS), investors are betting on the government’s ability to take or coerce payments from borrowers. These investors are not concerned with people getting an education, they just want a return on their money from this system of usury.

This is not the way to invest in the education of young people for the future, it’s just a way to make money without any moral consideration. What can students do in a situation where they have too much debt or cannot pay (in default)? We can first look at this from the debt collections phase; first, you want to use available procedures, such as settlement or payment options, to mitigate the re-payment. It’s a good idea to be sure you organize your cash flow and property rights so that none of them can simply be taken through an administrative levy. This means cash flows and property titles and other property rights should be held in the names of tax deferred and tax flow-through structures, limited liability companies are the easiest and most effective and least costly. Trusts are also good, but those can be costly and have many restrictions. The same may also be try for C-corporations, it’s important to review these structures yourself, but I am recommending the use of one or more limited liability companies. Once you are finished using them, you can sell them as “shelf corporations” so in the long term, these may cost nothing.

The only risk you have that cannot be eliminated is “W-2/W-4” wage income, if you have this, and cannot change your type of income to self-employed or independent contractor, get into a workout program or use student loan procedures to negotiate. I’m not promoting any service here, but a quick search online showed that a company by the name of Global Bridge Holdings specializes in student loan workout programs. These would be the last efforts if all else fails. As you’ll learn here, you may never have to get into this situation if you follow the other recommendations.

The Department has what it calls “Standardized Compromise and Write-Off Procedures” for use by guaranty agencies. These are for negotiated agreements between borrowers and guaranty agencies to accept less than full payment as full liquidation of the entire debt. To summarize the guidelines, collection costs can be waived and as much as 30% of principal and interest can be waived. If a guaranty agency chooses to compromise more than 30%, it cannot waive the Department’s right to collect the rest. It is possible to change your payment plan to drastically reduce the amount you are paying, even down to nothing, based upon your income.

There are also employer Loan Repayment Assistance Programs (LRAP), either your employer has one or you can negotiate one as part of your compensation)

You can also transfer guaranteed student loans to unsecured credit cards. There are no guarantees and will impact your cash flow the least.

This is probably the most important one but keep in mind that what I’m going to explain here, is something that can and should be done by everyone. In fact, this technique is what the rich people use to pay for their expensive toys. Acquire assets or build a cash flow asset and use that to offset the student loan debt situation, this can be done no matter how much debt you have or what types of debt, even if you have judgments and active levies. Consider buying into a cash flow, or brokering the sale of real estate by taking an interest in the title with an options contract, or buy local assets, like that car wash down the street. You want to buy assets to offset the liabilities of a student loan. This is explained in greater detail in my book.

Additionally, the Federal Ombudsman is “a neutral, informal, and confidential resource to help resolve disputes about your federal student loans.” If you have a loan dispute that you simply can’t resolve in any other fashion, contact the ombudsman. Such disputes could include discrepancies about federal loan balances; issues related to default, bankruptcy, tax offsets and other concerns; and questions about postponement, discharge and forgiveness requirements.

How can students avoid this type of debt in the first place?

Plan ahead to avoid taking on long term student loan debt by leveraging cash flow and assets to offset the costs of tuition.

Parents should never co-sign or show that they are eligible to be guarantor or co-signer for children attending college.

Use an asset to pay for college. Here is an example, it’s not really using an asset, just some equity that you might have in property, even though it is a liability. Use short term debt (real estate with clear title, write a short term note on 25% of the property value and sell it in peer-to-peer lending, pay it off and then do it again in series)

In some professions, you can gain competence without enrolling, sounds crazy, but this might be worth considering. My daughter wanted to attend art school, and it’s not that I’m cheap, but rather, I’m practical. I know that she’s not going to use her degree to qualify for a job, but she will be able to use her qualifications to make money in a business venture. So I explained how she could rent a luxury apartment near campus and let two students room with her for free, the only condition being that they include her in their art lessons and activities.

What alternatives are there for people that want higher education for the advancement of a career that would support their families? You can find apprenticeships or get vocational training, you don’t need a four year college degree to be successful and find a career that will lead you to a prosperous lifestyle.

Consider learning important things so that you can be self-reliant, such as basic home wiring, plumbing, gardening, composting, canning, saving seeds, for food, along with water, sewage and rain filtering. Learn net metering practices to reduce your costs for energy. Learn a useful trade, such as mechanics, carpentry and landscaping.

Don’t plan on going to college for useless degrees in things like “social justice” and public relations or practicing law, etc.

Look for apprenticeships, you can find services (browsers) that can connect you with apprenticeship programs, two I found include and

Do your own research about what qualifications are required in the field you want to work. Example, instead of going to veterinarian school to be an employee veterinarian, contact a business broker and look for veterinarian businesses for sale and buy those assets.

Look for vocational training scholarships or simply pay far less for vocational training to get near the profession you want. Here is one website that explains the opportunities, again, I’m not promoting anything in particular,

In summary, a quality or formal education is important at least through the age of 25 and you can get it with little or no debt. Taking on too much debt too early in life may seriously diminish your ability to acquire a size-able net worth. Build upon skills that help you offset liabilities with assets and this will be a skill you will use for your entire life, no matter what your vocation or educational background.












Have you ever called customer service and heard the welcome greeting that says something like “…this call may be recorded for quality assurance”, or “…this call may be recorded for security purposes…”? This is not truthful, your call is being recorded for purposes other than “quality assurance” or “your security”. The recording serves only to indemnify the company against future claims you might make or to waive claims you might have based on what you say during the conversation. This is not the point of my article here, but I wanted to introduce the topic this way because this is when I began questioning these occurrences. I began denying these companies my consent to record my voice without first agreeing to my own “data retention policy” terms, which include paying me a license for the storage and use of my recorded voice. Some disconnected, some agreed, and some decided to send me a letter. That was dating back to the late nineties. This same understanding carried over into the development of smart phones and other new technology.

Don’t confuse security with surveillance, especially when it comes to your home and your family. Video surveillance of your home while you are not there is a very useful tool in allowing you to take action in real time during any invasion of your home; however, it’s important to recognize that surveillance by itself is only good for one thing, surveillance. If something is captured on video, it can be seen by anyone, for many years to come. If you have video surveillance in your home, the signal should be encrypted so that only you have access to that feed and so that no one else can intercept it and collect video images from your home, whether you are there or not, or at anytime. This should be a very easy concept for people to realize, but I think many people mistakenly trust the manufacturers of these devices and incorrectly assume that no strangers are watching them or collecting this data. While the risks are the same for home “security” systems as they are for all other forms of surveillance, I just wanted to focus on these innocent looking fun toy-like devices that people love to buy.

Yes, if you have any video or audio systems in your home, you are under surveillance. This includes a new television, smart phone, computer, surveillance cameras and especially these devices such as “Alexa”, “Scout”, “canary”, “Echo”, “Piper” and others such as OK Google, Google Home, Siri and Cortana. This leads me to the main example of this article. These devices are fun, entertaining, informative and useful, but they are “listening” to you when you don’t need them to, recording what you say, and in some cases, collecting video data, whether through the device itself or by capturing video data from other un-encrypted devices in your home. If you’re going to allow this, then you don’t need locks on your doors, you don’t need doors and you can build walls made of glass.

People spend lots of money for locks, doors, secure windows, security systems, and then completely ignore twenty-four hour video and audio surveillance of their homes by these devices. Most if not all of this data is being transmitted to your SMART meter. Your SMART meter is a node on an international surveillance network and your power company is collecting your data and selling it. Why invest in all of this security and then throw it out the window by allowing this type of surveillance? The SMART meter nodes are not encrypted. The space used for the batter of the computer hardware inside does not also allow for any firewalls or other forms of encryption. What this means is that anyone can collect the data from your SMART meter at any time.

These devices use speech recognition to respond to requests you make verbally. And although the “wake word”, which is usually the name of the device, so that it responds when you say its name. Don’t believe this for one second. The device is “listening” to everything that is audible and recording that information all the time. Anything said, that can be translated into text, is translated into text so that the data can be sold and used by companies that want to sell you things that are consistent with your conversations. But what are the legal implications?

From a legal standpoint, voice tracking isn’t necessarily out of line. “These devices are microphones already installed in people’s homes, transmitting data to third parties,” Joel Reidenberg, director of the Center on Law and Information Policy at Fordham Law School in New York City, told USA Today. “So reasonable privacy doesn’t exist. Under the Fourth Amendment, if you have installed a device that’s listening and is transmitting to a third party, then you’ve waived your privacy rights under the Electronic Communications Privacy Act.” It’s just like being outside, once you’re in the public outside of your private home or vehicle, you have no protections to privacy. There mere fact that you have such surveillance devices in your home or use, begs the question of whether or not you have overtly or implicitly waived your rights and protections guaranteed by the Bill of Rights. And I’m not falling for the promise that pressing a mute button restores any of my privacy or rights.

Read Samsung’s “privacy policy” and the recent changes it had to make, and you have to ask yourself if anything really changed. If you had the ability to listen to other people’s conversations whenever you wanted, and if you had a profit motive, why would you ever abandon that ability? Don’t believe for one moment that these devices are not doing only one thing, logging any and all video and audio data from you, all day, everyday.

It should be obvious that people should not be using these devices. It’s bad enough that smart phones have replaced telephones and have become one of the most useful consumer tools in human history. Those of us who adopt practices to protect our privacy should consider establishing our rights in a written security agreement that is established along with the terms of service and privacy policies of these companies. Who says people or consumers cannot have their own terms of service and privacy policies? If enough people did the following, it would create the changes we want.

Identify proprietary data in a contract that expresses the terms under which that data can be used by the companies collecting it. Serve notice of the terms upon the company or organization collecting your information. The name and address of the company is usually found in its terms of service and privacy policy. Once you send the agreement, record it in your local county with the UCC Financing Statement for the security agreement as its cover page, and it becomes a lien upon the balance sheet of the company as long as the company uses your information, and you build a claim against the company under the terms of the license provisions in the agreement. You are the creditor, the licensor, for the use of your identifying and biometric data and the company using it is the debtor, or the licensee.

It is important to first understand what risks you have to your privacy from the technology you are using, then take steps to mitigate or reduce those risks. And then, to the extent you cannot eliminate them totally, impose license terms for the use of the information that is being collected about yourself on the companies doing it. At that point, collecting your information is no longer an asset or valuable, it now becomes a liability in which you are the creditor.

If you think these are crazy ideas, then answer these questions: Why was Muhammad Ali able to sell his “likeness” for $50,000,000 in 2004? And, why is Marilyn Monroe’s estate still in business? And don’t tell me because they were famous, that only puts a higher price tag on the data. Last question, did you know that the average person’s identifying information alone (his financial data) is worth about $25,000,000 in an average life time?


Your car engine is defective if it’s getting less than 100 miles per gallon. There is vacuum and other technology, that is fairly old, which has been excluded from today’s engine manufacturing so that people will need to buy more fuel and pay for more maintenance on their car engines than necessary.

The fuel injection technology was developed by the car manufacturers when people began discovering that the carburetor could be modified to give engines an efficiency of more than 1,000 miles per gallon. In fact, it was the car manufacturers that discovered this through their own research. Yes, that is more than one thousand, not just one hundred. I’m not going to discus this because the vast majority of cars people are using now have fuel injection and the carburetor research is fairly easy to find.

The fuel injection system we use today involves a “throttle body” and this along with the spark plug specifications and the positive crankcase ventilation or “PCV” valve can be modified (upgraded) to give gas engines, at least double the efficiency they are now getting. We should be getting at least 100 miles per gallon by simply correcting what the manufacturer deliberately did not build into the engine.

I’ll bet you never thought that your car engine was manufactured defectively, but I’ll bet it will really set your head spinning when you realize that it was deliberate. I’m not technically inclined on this subject, so I must include a detailed explanation from one of the inventors himself, Ron Hatton. Here is how he explains it.

In March of 2009, while speaking with a pilot who holds several records for fuel efficiency in flight who was describing the turbulence over his wings, I had an idea. If I could make that kind of action occur inside an engine, something good would happen. Almost immediately, the shape and location popped inside my head, accompanied by an energy that made it impossible for me to do anything but apply this modification.

Beginning with a 2000 Land Rover, we began to find it working to enhance combustion characteristics across all gasoline engines. Now, more than three years later, this technology has spread to more than 20 nations and is in almost every state in the union.

Basically, what we have discovered is the shape or a “groove” that I call “The Gadgetman Groove”. It has a profound effect on the naturally occurring pressure curve inside the intake manifold in such a way as to reduce the pressure available as the fuel is delivered to the cylinder. This reduction in pressure has the added effect of increasing the quantity of fuel that is in vapor state at the point of ignition.

Fuel that is normally burned in the exhaust (so-called “Waste Fuel”) is given what it needs to burn inside the engine, enabling tremendous increases in fuel efficiency and all that means to an engine AND the environment.

The normal process of the intake cycle generates a condition of reduced pressure inside the intake manifold. This is called “Vacuum” and represents anything below normal atmospheric pressure and is measured in Inches of Mercury (Hg). As an engine ages, the seals that create this vacuum deteriorate (ring wear, broken lines, dried and cracking diaphragms). As the vacuum drops, so does the efficiency of your engine.

This is because of a little considered scientific law called The Law of Standard Temperature and Pressure” or “The Ideal Gas Lawwhich, simply stated, is “At a standard pressure and a standard temperature, fluid X requires Y amount of BTU’s to change states.” As it applies to us here in the world of fuel efficiency, if you reduce the pressure on a liquid, it will vaporize at a lower relative temperature.

Why is Pressure Important?

Gasoline is a liquid. Oxygen is a vapor. You cannot mix the two under normal conditions. They must both be in the same state to blend (liquid to liquid, vapor to vapor). As you will never see the amount of pressure inside an engine necessary to liquefy oxygen, you can forget that approach. BUT! Since there is already a vacuum present, you CAN enhance the wave already present, providing the conditions appropriate for blending the fuel with the oxygen, a prerequisite for combustion.

What’s a “Normal” Vacuum?

Normal engine vacuum is considered “ideal” at about 17” Hg. But, as we discussed earlier, this is just a figure, and all engines will have different values here, as will the temperature-to a greater or lesser degree. It is the vacuum (in conjunction with the manifold temperature) that causes some of the fuel vaporization, enabling the fuel to burn faster at the point of ignition. These vapors, when ignited, then supply the BTU’s the rest of the fuel compounds require to vaporize, so they may complete the combustion process. Combustion will continue until either the fuel or the oxygen is depleted to the point it will not support further combustion. Unfortunately, the fuel we are given today to run our engines burns so slowly that most of it is consumed in the catalytic converter.

The raw (un-combusted) fuel is held up there, coming into contact with certain heavy metals which, when heated, allows the fuel to burn (or catalyze) leaving compounds less harmful to the environment than the raw fuel. In summary, the catalytic converter burns what is considered to be “Waste Fuel” (the fuel the engine can not consume -under “normal” conditions.)

Therefore, if you want to increase the rate of combustion (and clean up your emissions!) you have to be able to reduce the amount of fuel in the exhaust. The best way to do this is to change the conditions on which the computer bases its fuel delivery. Simply, burn more of the fuel (and the oxygen!) in the combustion chamber. The only way to do that is to get it to mix better with the oxygen, and the BEST way to do that: vaporize more of the fuel!

The core problem is that liquid fuel must evaporate to burn completely. Combustion happens so fast that the fuel cannot evaporate completely, resulting in un-combusted fuel being sent to the catalytic converter. This is where the emissions are processed, and where the computer takes most of the information which it uses as the basis for its calculations to determine the fuel requirements.

He is not specific here, but this involves modifying the throttle body. The throttle body is the part of the air intake system that controls the amount of air flowing into the engine, it looks something like this:

Once you’ve modified the throttle body, you will want to further increase your engine’s efficiency by capping off the positive crankcase ventilation (PCV) valve and then modifying your spark plug gaps beyond the manufacturer’s specifications.

I’m going going to get into all of that detail, you can read it for yourself via this link:

My point is writing this article is to explain that the corporations that are supposed to serve people, have instead by serving their owners at our expense. We can stop this, and we can do it in a way that everyone benefits, even the owners and their customers (us).

It’s not enough that, for example, the throttle body isn’t made properly, but there are mechanisms in your car that deliberately help to waste fuel, such as the O2 sensors. These sensors prevent you from improving the gas mileage using a technique such as modifying the throttle body, or changing your spark plug gaps. In fact, the specifications for spark plug gaps also keep your spark plugs from operating in the most efficient way possible. Of course I’m not a mechanic and people will criticize what I’m saying here, but at least check it out for yourself and don’t take my word for it.


Suppose that the USD price of a Bitcoin (XBT) was $2,000, just suppose. As it turns out, today it is nearing $2,100 and is the reason I’m writing this article. In this case, 1/1000th of a Bitcoin would be, using international nomenclature, a “milli-Bitcoin”. The abbreviation of “milli” is “m”, so one-thousandth of a Bitcoin would be 1 mXBT. It should be noted that sometimes XBT is expressed as “BTC” but I’m using the former in this article as I believe it will be adopted by the International Standards Organization (I.S.O.).

It’s not part of our common experience, even if we are only using cash, to deal in $1,000 or $2,000 notes, so it may become important to start talking about Bitcoins in terms of what we use everyday. 1/1,000th of a $2,000 Bitcoin therefore is worth $2, this is an “mXBT” (milli-Bitcoin).

What happens when 1 Bitcoin becomes $10,000? That would be 10 mXBT. We don’t have any language for this, so let’s consider what we’re talking about; a tenth of a thousandth of a Bitcoin is 100 micro-Bitcoins. A micro-Bitcoin is a millionth of a Bitcoin. Who wants to say that?  We need some language for this. We have a Bitcoin, milli-Bitcoin and micro-Bitcoin. One micro-Bitcoin (µXBT) just happens to be the smallest unit of Bitcoin, and it’s already named after the founder of Bitcoin, a “Satoshi”. Maybe we can talk about that someday when Bitcoins are a million USD each, not sure how soon that will be, but for now, we need two new words, one for 1/10th of an mXBT and one for 1/100th of an mXBT.

If it takes 1,000 micro-Bitcoins for 1 mXBT, it would take 10,000 micro-Bitcoins for 10 mXBT. In other words a “micro-Bitcoin” = 1 millionth of a Bitcoin or “1 Satoshi”, which using standard metric system abbreviations, could be “µXBT”. This chart demonstrates the relation between factors of ten, assuming 1 XBT is $2,000:

.001 XBT = 1 mXBT = 1,000 micro-Bitcoins = $2

.0001 XBT = 10 mXBT = 10,000 micro-Bitcoins = $20

.00001 XBT = 100 mXBT = 100,000 micro-Bitcoins = $200

the same as,

.001 XBT = 1 mXBT = 1,000 Satoshis = $2

.0001 XBT = 10 mXBT = 10,000 Satoshis = $20

.00001 XBT = 100 mXBT = 100,000 Satoshis = $200

which would be the same as

.001 XBT = 1 mXBT = 1,000 µXBT = $2 “mBit”

.0001 XBT = 10 mXBT = 10,000 µXBT = $20 “penny”

.00001 XBT = 100 mXBT = 100,000 µXBT = $200 “dime”

The term “mBit” would represent 1/1,000th of a Bitcoin.

The term “penny” would represent 1/10,000th of a Bitcoin or ten mBits.

The term “dime” would represent 1/100,000th of a Bitcoin or one hundred mBits.

I think the language will develop very soon, I just wanted to add in “my two cents” as part of the conversation. I’m sure others have already proposed similar terminology. This may solve the problem of naming the quantities while we are talking to each other, and computers don’t care, they just calculate numbers, but we don’t speak like computers.  The real usefulness of this understanding is when Bitcoin is priced in grams or ounces of gold and silver, without using the dollar as a conversion factor.

Even though it’s priced in the dollar, we can look at the U.S. Debt Clock to help get some idea of the conversion rates. But like I just stated, eventually, no one will care about Bitcoins and USD, and the conversion will be defined by free markets in terms of purely how many Bitcoins I can get for a gram of gold.

The USD / gold ratio as stated on the U.S. Debt Clock as of today is $6,975 to 1 ounce of gold. Dividing the current USD price of Bitcoin (which I’m suggesting that soon we won’t have to do that) by this amount, gives us $2,737 / $6,975 = 0.3924 ounces of gold for 1 Bitcoin. Let’s look at this in terms of grams of gold. A troy ounce of gold is 31.1034807 grams. This would give us $6,975 / 31.1034807 USD / g Au or $224.25 dollars per gram of gold. At this rate, how many grams of gold would it take to buy one Bitcoin? Dividing $2,737 by $224.24 gives us 12.2051282 g Au/XBT. I believe the exchanges should begin to set this pricing, just like they set the exchange rates for Bitcoin and local currencies now. We should not have a centralized “price fixing” authority.