Deferring Capital Gains Tax When Selling Cryptocurrency
He is out of Nicaragua, he’s current undergraduate studying business administration in computer information systems. One of his greatest passions is learning about new technologies, and he’s invested in learning understanding how to implement blockchain technology in real-world use cases.
Watch the episode here
Brett:
I’m excited about our next guest. He is out of Nicaragua, and I haven’t had too many guests overseas. I think a couple in France. But he’s currently undergraduate studying business administration in computer information systems. One of his greatest passions is learning about new technologies, and he’s invested in learning understanding how to implement blockchain technology in real-world use cases, and I’m excited to welcome Felipe Vogel to the show Felipe How are you, sir?
Felipe:
Thank you, Brett. Thank you for having me. I’m really excited to be here. It’s really exciting to talk about this technology. Thank you.
Brett:
We got the blue shirts on today, both of us with our glasses, and we got similar color hair. I got a little more, a little shorter on the sides. There’s a little longer, but you’re looking good, sir. For our listeners, so thanks for doing that. For our listeners who are getting to know for the first time would you tell us a little bit more about your story, and then your current focus on blockchain and cryptocurrency?
Felipe:
My name is Philippe has been introduced. I’m 21 years old, and I was born in Nicaragua that’s located in Central America. I’m currently studying in Florida. I’m a senior right now, and I’m excited about technology. I learned about blockchain and crypto back in 2015. I was 15 years old, and I remember I still remember going to school at 7am, and sitting in the car and thinking about new technologies. I started to learn about the stock market. I started to learn about this thing called XRP. Back in 2015, and it was interesting because it was like, it had a value, but I couldn’t understand what the value was a bit. But I started learning a little bit, and I saw that I had an opportunity there. But I couldn’t buy anything because I was 15 I wanted to buy Tesla stock I wanted to buy XRP, and something that came to mind was what’s gonna happen with this in 10 years? What’s gonna happen with this in the financial industry? And since then, I’ve been very interested in learning and learning and learning. I think that’s one of the core features that brings anyone that’s interested in blockchain or crypto to successfully investing in learning.
Brett:
That’s really great. Exactly. Learning and understanding it and of course, selling high, and being able to defer the tax if you have a huge gain, every state in every country has different rates, and they made some different laws when it cards to this. What’s the biggest secret Felipe right now that you found or that you’ve learned over the years is that it comes to investing and understanding blockchain and cryptocurrency what’s, what’s the one thing that’s really sticking out for you that you’ve learned in the past 12 months?
Felipe:
Well, regarding the investment of cryptocurrency assets, you have to think about how you give value to something that you can’t know how it got value like it was created, it’s a smart contract, let’s say it can have an unlimited supply. But how do you get value to that thing that I found that gives value to myself, I actually have some clients and I invest for them, and it’s pretty good. But something I found for myself and other clients is that you have to think about a project, not the coin, but the project and where it’s going in the future, how it’s interacting with real-world use cases, what’s going to do in the future, and I would totally stay away from mean coins, Excuse My French, they’re called ship points. Because they’re, they’re made to make fast money, and that’s not something real. A lot of people can make money with I mean coins, but it’s not the name of the game. You got to stick to things that are going to be the future you got to stick to the technology, and you got to know who you’re investing with.
Brett:
As far as the technology so like figuring out thing has value or future, something like a theory, and maybe you can explain why does a theory have value or something like a chain link. Explained some of the technology behind some of the coins and some of the blockchain that you’re investing in or that you’re following.
Felipe:
If you’re new to crypto or you’re recently investing in crypto, you want to know what blockchain is, what this technology is, and I found a way to explain blockchain very simply and easily. You got to think of blockchain, you got to get the words and you got to separate it, and you have a chain of blocks where the blocks contain information, and then I’m going to explain how it becomes a chain. Let’s say you’ve probably heard about the Ethereum blockchain. The blockchain simply means whatever happens on Etherium is stored in the blocks of the blockchain of Ethereum. Pretty much what happens is that, let’s say there’s a transaction, it’s stored in the blockchain. But the block has a limited amount of storage, where once it’s full, whatever was last on the block is going to appear on the new block, which makes the connection off the blocks and increase the blockchain, and one interesting thing about blockchain is that it’s pretty much impossible to hack. Because it works with a distributed ledger. A ledger is simply a list. Let’s say we’re going to go to the supermarket, I have a list, you have a list, and everyone has the same list. You were to change something from that list, you would have to change everyone’s list. The blockchain changes, and since it’s updated, pretty much live, and a lot of things are happening at the moment, it’s pretty much impossible to change it before anything else changed anything else updates on the blockchain?
Brett:
It’s really fascinating, and in fact, there was a deal that we just closed on Saturday, it was in the Ethereum case, and also partial Bitcoin. They bought it for like 100,000 over the last worth of coin over the last 5 or 6 years, and then they saw it shoot up to about 9 million or 6 million in 2016, and it was like 9 million, like six months ago, or seven months ago, and then it was like 13 million. Their gain, their gain was like $12.9 million. They’re looking to sell this thing, all this tax I’m going to do, and so we were able to use the deferred sales trust to defer the capital gains tax on that, and it’s the part of why I was interested, I asked him like, how did you have like the titanium spine to hold? I mean, he bought it at 100,000, it turns into 200. Why don’t you just sell? He’s in the tech industry, tech world. Computer Science, all the stuff that you’re doing to He’s like, I understood the technology, I understood the future, he had the certainty of conviction, when it came to this investment, not unlike what someone else might have for a piece of real estate or a stock or a company or whether other investments like, someone like Steve Jobs, who creates a personal computer in the garage in Silicon Valley.
Then he has a conviction that the future is this, and so that was really fascinating to hear from somebody who is in it, especially from someone like myself, who’s a real estate expert and then tax deferral, went to deferred sales trust expert, but not an expert when it came to crypto, that he had the certainty of condition. Now the opposite was actually kind of funny, too, because his wife was also not an expert in this. In fact, she’s an attorney in a completely different field, and, and he actually delayed telling here for a couple of years about their investment and how well it had done, and so they’re sitting down at the table and at the at a dinner one night, and it’s like an anniversary dinner. He’s like, honey, I have something big to tell you, and she’s like, She’s like, Whoa, like what are you talking about? Like, well, I bought some something here, and it’s gone really high. Like what’s the Ethereum? What’s a Bitcoin? What’s it worth? Did she tell them the price, sell it off? He’s like, no, this is our future. He’s trying to explain it to her, and she’s like, what, it’s so risky. It’s so there’s so that however, if I’m hearing what you’re saying, You’re saying, if you understand the technology, and what it can do, and the value can be, you can have the certainty to hold Is that a fair summary so far? That’s a great story.
Actually, I wish everyone had the same story. He told me all right, all the courage to buy the courage to hold right into why ride the waves, and again, as of Saturday, they just sold about 5 million worth of deferral. The tax is pretty powerful, really cool, and it’s changing the way that people defer to cryptocurrency capital gains tax, using the Deferred Sales Trust, by the way, you can go to capitalgainstaxsolutions.com to learn more about that’s capital gains taxes, calm to learn more about that and the track record of the deferred sales trust. I’m curious for you, Felipe, what’s been the biggest frustration for me either your friends or family or you know people that you know who invest in crypto when it when they go to sell. What’s your biggest challenge when it comes to Capital Gains Tax or lack of options?
READ AND LISTEN TO OUR FULL EPISODE
Comments