Deferring Capital Gains Tax When Selling Cryptocurrency With Felipe Vogel

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.

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Deferring Capital Gains Tax When Selling Cryptocurrency With Felipe Vogel

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?

Felipe:

Well, one of the most difficult things to do is sell because you have to think about maybe Bitcoin in 2011 2012? Then how long has it been since that time? Then in, how many years has it doubled, tripled, and 10x 20x? thing is when you go to sell? How do you know it’s the right time? How do you know there’s the best you’re getting, and I think that’s difficult because a lot of people FOMO in, when it’s going up, and then they start selling when they’re losing money. But that’s not the name of the game, you have to hold and you have to sell, you have to have an exit strategy, because, without an exit strategy, you’re not gonna be able to do anything. That is why I always have a strategy, and then whenever anyone’s investing with me, I try to tell them, this is the amount of time we’re going to be in. This is what we’re going to do you have a say in everything we do, but try to take my advice in order to make some money. But my main purpose is not to make money for other people. That’s a side hustle I have, but I want people to adopt it. I want people to understand that I want people to know, I want people to join me and start learning about this and start building new stuff for the world.

Deferring Capital Gains Tax When Selling Cryptocurrency: “If you do not like real estate, all you have to do is make hamburgers, build a business around that hamburger, and franchise it.” – Robert Kiyosaki

Brett:

I mean, if it were, it’s like the beginning of computers you had 25, 30 years ago, and I imagine again, these are Steve Jobs, and he says was me, I can’t he’s in the garage, and he’s the neighbors are probably walking by may be laughing at him or like asking questions. What are these guys doing building robots in there? I don’t know what happened during that whole run-up, and he’s like, I want you to understand this. I want you to see what this can do for the world. I want you to see that. The opportunities, I want you to join the movement to roll this out. Is that a fair summary for the day?

Felipe:

I think a lot of people are actually thinking about stuff like that, and they’re taking it into account, and maybe they’re like, okay, we’re in the future, and we’re early, we’re gonna make something out of this, and they’re interested, they’re happy. They’re excited, and I think that’s great.

Brett:

It’s also bringing the world together and a lot of ways. You’re in Nicaragua, or I’m here in California, and we’re miles apart, but we’re coming together on something here through cryptocurrency and what’s happening, and so that’s really cool. So, um, okay, so yeah, so I like, also want to touch on a couple of things you said, you said, the FML, like fear of missing out. They’re making emotional decisions on the run-up, and then probably making emotional systems on the down, and there’s this kind of this roller coaster, especially in crypto, and to be able to have the certainty of conviction of why you’re investing in the value behind the technology or the coin, or the future of that thing, and how it actually brings, again, value to whatever thing is going to be solving second, having someone on your team, I think this is so important. Unlike Felipe, who has another understanding or deeper understanding, or is a few steps ahead of the investor. That this is why financial advisors are in place, and it’s a crypto advisor, in one sense, is what he is, you could say is what you’re doing here. You help people make decisions on the buy and the sell of the coins, right of the property. The importance of not going at it alone. Just speak to that not going it alone, learning from those who know more about it than you do, and then having a game plan in place. You let the you don’t let the emotions take over.

Felipe:

I actually recently saw this metric. I watch a lot of YouTube videos, and I follow people like I’m not sure if you’re familiar with Bitcoin, Crypto Altcoin Daily, they’re great influences, and there’s great information. But I saw this metric, where they compared the whales whenever they buy, compared to retail buying, which is everyone else pretty much, and then how the markets fluctuate as they’re buying and selling, and what I found was that basically, when the institutional investors are buying, a bull run is starting. They’re early, and then when they’re about to sell or their start, they start selling, it’s about to the market is about to peak, and that’s when you see when it peaks, that retail is starting to buy because they FOMO in. But then you see that since 2013, and then 2017, and then back again right now and then I think we’re in the middle of a bull run. I could say it’s gonna happen again, and right now the metrics say that the whales are buying it means it’s gonna go up eventually. Yes, historically, but I don’t want to. It’s not financial advice. Let’s make that clear. But historically, it’s about to go up in value and probably when, when it’s at its peak, retail investors are going to start buying and they’re going to lose money.

Brett:

Very interesting. Very fascinating, and thank you for sharing that. I like that analogy. The whales versus the retail. As the institutional whales come in and then they start buying. It tends to be like a bull run, and obviously, if they stopped buying or started selling tends to be a bear-on. Is that a fair summary so far?

Felipe:

Yes.

Brett:

Excellent.

Felipe:

I want to ask you a question actually. Because I think you You’re an expert at this. Are you familiar with the SEC XRP case? Or Ripple Labs case?

Brett:

Let me also clarify what I’m an expert at. I’m an expert in all things, Deferred Sales Trust, Commercial Real Estate, investing in brokerage, not an expert in the crypto world, although we do we have closed the first official cryptocurrency deal into a Deferred Sales Trust. We really got to define expertise. My client was an expert in all things cryptocurrency and again, It’s a team effort to make everything work because we get everyone to sell and everything set up. I am not familiar with what you’re referring to. But how about you enlighten us on.

Felipe:

What it is? What happened is that the SEC is trying to manipulate sort of what’s happening in the crypto world through this company? What they did they’re saying that they did a public offering, I think it was 2012, 2013, and they’re treating this XRP coin as security. I’m not as familiar with asset classes in the US. I know what they are, but I’m not as familiar, and I wanted to ask you, a little bit more about what implications it has regarding its asset class.

Brett:

that’s a great question. I mean, securities stocks, bonds, mutual funds, certain different other things are classified as securities, and so what you’re saying is the coin for the first time in cryptocurrency history, if I’m hearing you correctly, they’re trying to classify or are classifying XRP as a security. Not being a licensed securities professional nor a securities attorney? I don’t really know how to answer that question. The good news is the Deferred Sales Trust can defer capital gains taxes on public or privately traded stock, which if the XRP is classified as a security, it’s gonna be like a stock, and if you were to sell, we could defer that tax as well. That is the good news. I’m not sure if you want to add anything else to that.

Felipe:

Since I have investments in the US, outside of the US, I’m a US citizen. One of the biggest things I’ve seen with a lot of people that are new to crypto is that they’re not sure what’s going to happen if they make some money in the crypto world in the US. If you have any enlightenment, around the taxation of this being security, can you tell us a little bit about what happens when you make money? Then when does it start counting as a tax implication?

Brett:

Great question. The key for anything, whether it’s property or security, or whatever, you’re buying at a certain price, and then when you have again, and you sell that, and you recognize that sale into your personal account, that’s a taxable event. Whether it’s a security or a property or ever it’s classified, you bought it for $1. It’s worth $1,000 a coin. That’s a huge gain. It’s a huge gain. Upon sale, there’s going to be depending on if you’ve held it for longer than a year, long term capital gains tax implications, shorter than a year, short-term gains. It’s classified as ordinary income. This is for the United States. Regardless of security versus property, there might be some other nuances there, depending again, I get I’m not a security attorney, check with your CPA, this isn’t legal tax advice. But just realize, if you sell something, you buy something low and you sell it high, it’s gonna be tax. You got to be, you got to be ready to pay that, and so I don’t know if that answers the question, but Any thoughts?

Felipe:

No, I actually, encourage all of our viewers, please do your taxes with crypto, please do it properly. We still don’t know what’s gonna happen with the actual asset. But for now, please, your taxes, your reporting,

Brett:

Don’t hide it, report it and say, I bought it for here’s what I sold it for. What do I owe? Here’s, here’s what I pay. We want to make sure you do everything aboveboard? Extra. We’re running out of time, Felipe, you ready for the lightning round?

Felipe:

Go ahead.

Brett:

Knowing what you know, now, if you go back to your 16-year-old self because you’re still pretty young. What’s the one Golden Nugget Make sure to tell yourself to do besides like, I should have bought Etherium in Bitcoin and more XRP or whatever.

Felipe:

I wish I could have, like, learn more about this technology. Because I stopped there were there was a time where I stopped learning about it, and I think that that would have given me way more information right now to talk about it, to invest in it, and to learn from my mistakes, but I’m happy learning from mistakes. I think that that’s one of the greatest things to do to learn from your mistakes, and I’m really happy where I am right now. But I wish obviously I had more information with me.

Brett:

Thanks for sharing. What’s the number one book or podcast or even YouTube channel you mentioned a couple before that you recommend for those who are maybe just getting started in cryptocurrency.

Felipe:

If you want to learn in a friendly way I recommend totally recommend Bit Boy Crypto, you can follow him on YouTube. You can follow him on LinkedIn, Twitter. It’s a big family. It’s really nice and he’s very like great. No blood is very nice and you can really understand what he’s talking about. He’s got to be real with you.

Brett:

Third question, what’s the number one leadership quote or theme that you strive to live by?

Felipe:

I strike by living in the present I feel like a lot of people that think of the future only the future are always or not always, but they’re stressed or they’re thinking what’s gonna happen next. I feel like if you live in the present, maybe not always remembering the past, but you live in the moment. I think you can do great things without being stressed being overly like something like that, like

Brett:

Overly anxious or overly concerned? Question four. Which coin are you most curious about?

Felipe:

Well, actually, I’m very invested in Etherium. But my favorite coin right now is XRP. Because of what’s happening with the SEC, and if the periods are right, it’s gonna explode, not financial advice again. But this acid is supposed to be the new swift system for the banks, where it’s going to make it easier, faster, smarter, and cheaper, and since the coin is burned, when it’s used, if many so many transactions like the swift banking system, I think they do 35 million transactions every single day. If that happens on the XRP blockchain, it’s gonna go up so much in value. I think it’s, it’s gonna be amazing.

Brett:

Thanks for sharing that, XRP. Next question, to talk about the book we talked about curious on the coin leadership quote, what’s the biggest obstacle facing the blockchain of the cryptocurrency world:

Felipe:

As a beginner or for myself?

Brett:

Just in general, like, what’s the biggest obstacle you think that’s, that’s facing the, it could be government, it could be regulation, it could be investments, it could be technology, like, What’s that one big obstacle, if it could be taken away, it would be in a better shape.

Felipe:

I think adoption because a lot of people are not actually understanding what this thing does. There are a lot of people who are just interested in making a quick buck, and they’re not invested in learning about what it’s gonna do for them in the future or for people around them or services, and I think a lot of people are just putting the money in. Sometimes losing sometimes winning it, but not really understanding what they’re doing with it.

Brett:

It’s the biggest obstacle is adoption and education. Would you say? Felipe, it’s been more than a pleasure having you on the show. For our listeners, or anyone who wants to get in touch with you. Should they reach out to you on LinkedIn? Is there a website? Is it Twitter? Is it Instagram? What do you think?

Felipe:

You guys can reach me anywhere? I think my LinkedIn profile would be there. You can message me anytime I will. I’ll respond to any message. I’m happy to talk about crypto with anyone and discuss let’s build something

Brett:

Felipe Vogel, thanks so much for being on the show and I want to thank our listeners for listening to the episode of the Capital Gains Tax Solutions Podcast also stream expertcresecrets.com, where we believe most high net worth individuals and those who help them they start with clarifying their capital gains tax for options, especially as it pertains to selling XRP Ethereum cryptocurrency of any kind. When there’s a huge gain right and you want to defer tax look for our new blog post is going to be coming out soon kind of detailing and again, that that recently closed deal as of just a couple days ago, $5 million, right of Ethereum Bitcoin sold and deferred over an over a million half attacks. All 100% legal using the Deferred Sales Trust, I need to learn more about that by going to capitalgainstaxsolutions.com that’s capitalgainstaxsolutions.com you also search on YouTube, iTunes, Spotify, all the major podcast channels, we do appreciate everyone out there, and please rate review, subscribe, please tag somebody right, who has highly appreciated assets and in coins and that they could get help right now and so we’re happy to help appreciate you, everyone, out there. Take care.