Taxes To Be Paid on Cashed in Dinars???

[WCKDinar]

Pay your one hour consultation fee and talk to an experienced CPI. Too much bad if not dangerous advise on the webb.

[jssphoto]

DDD get a tax attorney and an accountant. Look into LLC's and Roth IRA'S.

[Fishindinar]

Cash in in the beginning of the year then you have all year to find the best options.

[Stuck@Cedar]

I'm not positive it is accurate though. Since when is there a "medium" term capital gains? As far as I know there's either long term (over a year) or short term (less than a year.) Plus, there is still the issue as to whether profits on currency speculation actually qualifies as capital gains in the first place, or whether it is simply ordinary income. Moral of the story is seek professional help!

Medium term capital gains:giggle:

According to IRS Publication 525: Foreign currency transactions. If you have a gain on a personal foreign currency transaction because of changes in exchange rates, you do not have to include that gain in your income unless it is more than $200. If the gain is more than $200, report it as a capital gain.

The one thing that I do not know is if it can qualify as long term capital gains. Yes, logically it should... but the only thing I have been able to find concerning that topic states nothing about if it can qualify.

One thing I am wondering about is giving it to someone. The tax code is supposed to allow you to give up to $10,000.00 to someone and they don't have to claim it. If you haven't exchanged it back to U.S. currency, you haven't realized a gain. So, it would seem, you could avoid some of the taxes that way... if you had someone that you cared enough about to give $10,000.00 to.

[DDDinar]

Thanks to everyone for your swift responses and the warm welcome. I will of course go to a professional tax/currency specialist and do the right thing. I recently retired from the U.S. Army and have always paid my taxes and served proudly; it was an honor and a priviledge. While serving there were a few ocassions when I received bonuses and had to pay 28% tax on those monies. I have to admit, it did not sit well with me, but I knew my place in the world then and I know my place now. I will always do the right thing. But as we all know the right thing has become clouded and distorted it seems and only a few of us are playing by those rules. I just want to know the new rules. That is where some of you come in. If I were under the impression that my taxes were really going to where they were designed to go, I would not have even posted. I have seen things that just are not right and many made profits off the misfortune of others. I used some foresight that I did not have in the Persian Gulf War and I bought some Iraqi Dinars legally in hope of a better life for my family and my families family etc. 28% to 35% tax just does not seem fair and I used to literally take my Soldiers and escort them away from finance and loan establishments that had high interest rates or repayments of this magnitude. Everyone, have a great holiday season and may you and your families be safe. Please remember our comrades around the globe that will not be home and are on point for our nation. -D

[Daddy Needs Mils]

Thanks to everyone for your swift responses and the warm welcome. I will of course go to a professional tax/currency specialist and do the right thing. I recently retired from the U.S. Army and have always paid my taxes and served proudly; it was an honor and a priviledge. While serving there were a few ocassions when I received bonuses and had to pay 28% tax on those monies. I have to admit, it did not sit well with me, but I knew my place in the world then and I know my place now. I will always do the right thing. But as we all know the right thing has become clouded and distorted it seems and only a few of us are playing by those rules. I just want to know the new rules. That is where some of you come in. If I were under the impression that my taxes were really going to where they were designed to go, I would not have even posted. I have seen things that just are not right and many made profits off the misfortune of others. I used some foresight that I did not have in the Persian Gulf War and I bought some Iraqi Dinars legally in hope of a better life for my family and my families family etc. 28% to 35% tax just does not seem fair and I used to literally take my Soldiers and escort them away from finance and loan establishments that had high interest rates or repayments of this magnitude. Everyone, have a great holiday season and may you and your families be safe. Please remember our comrades around the globe that will not be home and are on point for our nation. -D

And thank you my friend for you devoted service to this country!

[v1rotv2]

Short term cap gains = assets held for less than one year. Short term cap gains are taxed at your adjusted income rate. Long term cap gains = assets held over one year. Long term cap gains are taxed at the rate of 15%. This all may change when Obama takes office.

[jefrog]

Thanks to everyone for your swift responses and the warm welcome. I will of course go to a professional tax/currency specialist and do the right thing. I recently retired from the U.S. Army and have always paid my taxes and served proudly; it was an honor and a priviledge. While serving there were a few ocassions when I received bonuses and had to pay 28% tax on those monies. I have to admit, it did not sit well with me, but I knew my place in the world then and I know my place now. I will always do the right thing. But as we all know the right thing has become clouded and distorted it seems and only a few of us are playing by those rules. I just want to know the new rules. That is where some of you come in. If I were under the impression that my taxes were really going to where they were designed to go, I would not have even posted. I have seen things that just are not right and many made profits off the misfortune of others. I used some foresight that I did not have in the Persian Gulf War and I bought some Iraqi Dinars legally in hope of a better life for my family and my families family etc. 28% to 35% tax just does not seem fair and I used to literally take my Soldiers and escort them away from finance and loan establishments that had high interest rates or repayments of this magnitude. Everyone, have a great holiday season and may you and your families be safe. Please remember our comrades around the globe that will not be home and are on point for our nation. -D
I would be curious to know...if you are in theatre when you cash in your dinar...would that be "tax free". When in theatre, if you are in a tax free zone, any money earned (SRB's and the sort) during that month is tax free. I don't see why the dinar being cashed in is any different. If so, I would get a day pass and get an escort to warka-bank. It's worth looking into...
I am suprised you were taxed on bonuses. That is not the norm, at least for USAF

[Rainman998]

Dont't know how much help this is or if its still good info but I copied this from an old blog on www.forexfactory.com



Article submission by Robert A. Green, CPA to Futures magazine for the April 2004 issue.

Currency traders face complexities and nuances come tax time. Currency futures are treated like other types of futures; your accounting is a snap and you enjoy lower 60/40 blended tax rates. However, cash forex can be an accounting nightmare and you face higher ordinary tax rates, unless you “elect out” of IRC 988 for 60/40 treatment.

By Robert A. Green, CPA

When it comes to trading in currencies, special tax rules apply.

There are two distinct types of currency trading and each has profound differences in tax and accounting rules.

First, you can trade in currency futures on regulated commodities exchanges and these futures are treated the same as other commodities and futures – as IRC section 1256 contracts.

Or, you can trade “cash forex” in the interbank market (not on regulated futures exchanges) and you are subject to an entire set of special rules – as IRC section 988 contracts.

Before you file your tax return, or even better yet before you start trading, find out what you are trading – is it a Section 1256 contract or a Section 988 contract.

Many currency traders transact in both. Contracts on regulated commodities exchanges (“regulated futures contracts” (RFC) on currencies) and in the non-regulated "interbank" market (a collection of banks giving third party prices on foreign current contracts (FCC) and other forward contracts) – commonly known as “cash forex.”

Learn below how currency traders are taxed similar to commodities traders, except that interbank currency traders must "elect out" of IRC section 988 (the ordinary gain or loss rules for special currency transactions), if they want the tax-beneficial "60/40" capital gains rate treatment of IRC section 1256.

Currency trading is like commodity trading in general
Most currency traders seek to be treated like commodities and futures traders, in that their trading gains and losses are treated as section 1256 contracts.

Both business traders and investors report section 1256 contracts as capital gains and losses on Form 6781 (Gains and Losses from Section 1256 Contracts and Straddles). This allows them to split the gains and losses 60/40 on Schedule D: 60 percent long-term, 40 percent short-term.
This 60/40 split gives commodities traders and investors an advantage over securities traders. 60% is taxed at the lower long term capital gains rates (up to 15%) and 40% is taxed at the higher short-term capital gains rates (or “ordinary rate” up to 35%).

The current maximum blended 60/40 rate is 23%, which is 12% less then the maximum rate of 35% on short term securities (or cash forex trading if you don’t elect out of IRC 988, see below).

Certainly, a 12% tax rate reduction is worthwhile to pursue for all currency traders.

Cash forex is subject to IRC § 988 (treatment of certain foreign currency transactions)
The principal intention of IRC § 988 is taxation on foreign currency transactions in a taxpayer's normal course of transacting global business.

For example, if a manufacturer purchases materials in a foreign country in a foreign currency, then the fluctuation in exchange rates gain or loss should be accounting for pursuant to IRC § 988.
IRC § 988 provides that these fluctuations in exchange rate gains and losses should be treated as ordinary income or loss and reported as interest income or interest expense. IRC § 988 considers exchange rate risk in the normal course of business to be like interest.

IRC § 988 does not affect currency futures (RFCs)
Currency traders who trade currency futures (regulated futures contracts – RFCs) are not affected by IRC § 988, because they are not trading in actual currencies.

RFCs based on currencies are just like any other RFC on an organized exchange.
Additionally, since RFCs are marked-to-market at the close of each day (and year), in accordance with IRC section 1256, the economic and taxable gain or loss are the same. IRC 988 specifically mentions that RFCs and other mark-to-market instruments are exempt transactions.

IRC § 988 does affect Foreign Currency Contracts
When a currency trader uses the interbank market to transact in Foreign Currency Contracts and Other Forward Contracts, they are exposed to foreign exchange rate fluctuations, similar to a manufacturer stated above.

However, the currency trader looks upon their currency positions as "capital assets" in the normal course of their trading activity (business or investment).

What this means is that a currency trader may elect out of ordinary gain or loss treatment in IRC section 988, thereby falling back to the default section 1256 contract treatment; which is 60/40 capital gains and losses. Most currency traders will want to make this election for the tax-beneficial treatment of section 1256 (lower tax rates on gains).

Foreign exchange traded currency futures
Many traders ask this question, ‘are currency futures trades done on foreign exchanges also taxed at 60/40 for U.S. citizens, or does 60/40 only apply to futures listed on US exchanges.’
There is a reasonable basis in fact and law to conclude that futures traded on certain foreign contract markets with either a CFTC Rule 30.10 exemption or No Action Letter are entitled to classification as Section 1256 contracts (e.g., commodities) with the result that “60/40” tax treatment is appropriate. For more details see http://www.greencompany.com/EducationCenter/GTTRecCommodities.shtml#foreignfutu res.

To “elect out” of IRC 988 or not, that’s the question
If you have cash forex trading gains, you will prefer to elect out of IRC 988, to benefit from up to 12% lower tax rates on Section 1256 contracts.

Conversely, if you have cash forex trading losses, you may prefer ordinary loss treatment over Section 1256 capital loss treatment, so you may not want to elect out of IRC 988.
Note that IRC 1256 losses may be carried back up to three tax years, but only against IRC 1256 gains in the prior three tax years. Ordinary losses may offset any type of income.
But, technically, it’s not a simple choice like this at the end of the year.

The rules require that you elect out of IRC 988 on a “contemporaneous basis.” This means that hindsight is not allowed and you must make your decision in advance of the trades’; before you know if you will have gains or losses.

Can you bend the rules?
The election out of IRC 988 should be filed “internally”, which means you place it in your own books and records, as opposed to filing it with the IRS.

Many traders do bend the rules and after year-end if they have cash forex gains, they claim they elected out of IRC 988, to use the beneficial IRC 1256 treatment.

In fact, our firm has noticed hundreds of traders who don’t even know the rules and simply report their cash forex gains on Form 6781. Others report them on Form 1040 line 21 as ordinary income and just pay higher taxes, without knowing the difference.

We expect the IRS to catch up with all cash forex traders soon, after the explosion of cash forex in the online trading market.

Don’t bend the rules and get into trouble, learn about the rules up front and follow them for success.

Currencies futures versus cash forex – what’s the accounting difference?
Currency futures traders have it easy, on two accounts. Not only do you get the lower-tax 60/40 treatment on trading gains, but you also have it much easier come tax time.

Your brokerage firm sends you (and the IRS) a simple Form 1099 soon after year-end, reporting one number for your Section 1256 trading gain or loss for the tax year. Line 9 on that Form 1099 is “aggregate profit or loss.”

The “mark-to-market accounting” rules in Section 1256 make accounting a snap. Your brokerage firm simply adjusts your realized gains and losses with beginning and end of year unrealized gains and losses for a combined realized and unrealized gain or loss amount.

On your tax return, report “aggregate profit or loss” on Form 6781 (the 60/40 form). Those 60/40 amounts are then transferred to Schedule D (capital gains and losses) – unless you carry back a Form 6781 loss to prior years.

Wow, if only all traders had it so easy on accounting!
Section 1256 futures traders don’t need any accounting solutions or programs; unless they want to check their brokerage firms, which may be a prudent idea.

Securities and cash forex traders face accounting challenges come tax time.

Form 1099s report proceeds on securities transactions and some have “supplemental information” for total sales and purchases of securities options, mutual fund transactions and purchases of securities. Form 1099s do not report cash forex transactions or single stock futures.

So these types of traders are on their own. Some brokerage firms offer online reporting, but many have unmatched trades and some say you can not rely on these reports for your tax returns.

So if you trade in anything other then Section 1256 contracts, you will probably need your own accounting solutions or software programs.

Most good accounting programs are geared towards securities traders. For examples, this writer’s company offers GTT TradeLog, a leading program for active traders to download all transactions and calculate trading gains and losses, with wash sales or IRC 475 mark-to-market adjustments.

Here is a good accounting solution for cash forex
Money managers report cash forex trading gains and losses using a “Performance Record Approach.”

These results are sufficient for tax authorities and reporting rates of return to investors. Use the same formula in a worksheet for your tax return. Here’s the formula to use on a worksheet template.

Ending net assets (at market value) less beginning net assets (at market value), less additions of cash, plus withdrawals of cash, equals net performance. Then subtract non-trading items like interest income, add interest expense and other expenses and you have net trading gains or losses on cash forex.

If you don’t elect out of IRC 988, then you report your ordinary gain or loss from cash forex as “other income” on Form 1040 (line 21).

If you elect out of IRC 988, add this amount to Form 6781 as “cash forex elected out of IRC 988.”

Your monthly statements may get you lost in the woods. If you try to figure out your cash forex gains and losses from your monthly brokerage statements you may get very confused and lost.
We have clients that have different statements for each type of currency (e.g. US dollars, Japanese Yen, Swiss Francs, and Euros) and it can become a nightmare scenario to try and figure it all out. The performance record approach is a salvation and it’s accepted by the IRS.

My broker reported my cash forex along with my IRC 1256 contracts, is that ok?
A few brokers lump in cash forex in with IRC Section 1256 contracts on 1099 line 9 “aggregate profit or loss.”

This is technically incorrect by law, but it may save you taxes and an accounting headache.
Technically, cash forex are IRC 988 transactions and should be segregated from IRC 1256 contracts.

Perhaps, these brokers can argue that when you opened your cash forex account, you “contemporaneously” elected out of IRC 988 for IRC 1256 treatment, and that you qualify for such as a trader rather then a manufacturer type business.

You should consult with a trader tax expert if this case applies to you.

Also consider what happens if you have a large cash forex loss and you prefer ordinary loss treatment instead of Section 1256 treatment – so you don’t get stuck with the capital loss limitation of $3,000?

You face difficulty in overriding a broker’s 1099 treatment for 1256 contracts. Consult with a trader tax expert who may be able to help.

Cash forex is the “wild west” of trading and IRS reporting
Cash forex is not regulated by the CFTC and it has been called the ‘wild west’ of trading.

Cash forex is also the wild west when it comes to taxes and reporting trading gains and losses.

There should be no 1099 reporting for cash forex, so you are your own sheriff when it comes to ‘rounding up’ the gain and loss numbers and paying your taxes (with the nuances of IRC 988).

A person visited our booth at the Online Trading Expo in NYC and ask if cash forex was taxable at all? She heard that many cash forex traders claimed they don’t pay any taxes on their gains. We told her the IRS sheriff will catch up with them soon and throw the book at them for tax avoidance.

Remember, Form 1099 rules are minimum reporting guidelines set forth by the IRS. New products are being created all the time and it takes years for the IRS to set the guidelines for how each product is reported on Form 1099s, if at all. Brokerage firms tussle with the IRS each year on what they must report; as it causes great stress and cost on their accounting systems.

Many new and smaller cash forex brokerage firms have ramped up quickly to tap into the explosion of interest in cash forex – especially after the securities markets went into a bear spin a few years ago.

Many of these firms are not strong on reporting, systems or tax compliance, so you may be on your own when tax time comes.

Before you open a cash forex account, ask your brokerage firm what kind of reporting and support they offer you.

Bottom line
Currency trading is a hot commodity in the market place, but not all currency contracts are taxed like commodities. Cash forex is subject to IRC section 988 rules and if you’re a trader, you can elect out of IRC 988, to be taxed like commodities – with beneficial 60/40 treatment. Before you start trading cash forex, find out if you brokerage firm will help you with trade accounting. If not, you may have a huge accounting headache on your hands come tax time. When it comes to currency trading, it’s wise to learn all the tax rules and consult with a trader tax expert.

[Stuck@Cedar]

I would be curious to know...if you are in theatre when you cash in your dinar...would that be "tax free". When in theatre, if you are in a tax free zone, any money earned (SRB's and the sort) during that month is tax free. I don't see why the dinar being cashed in is any different. If so, I would get a day pass and get an escort to warka-bank. It's worth looking into...
I am suprised you were taxed on bonuses. That is not the norm, at least for USAF

Not all money earned in a war zone is tax free. The way I understand it, all earnings for enlisted members is tax free. Officers base pay is tax free up to the maximum possible base pay of an enlisted. Any money earned for an officer over that amount is taxable income.

DDDinar stated "While serving there were a few ocassions when I received bonuses and had to pay 28% tax on those monies." He didn't say he paid tax on bonuses earned while in a war zone.

[Stuck@Cedar]

love it how people are soo worried about tax.

.......lets just get one tiny little thing out of the way first:rolleyes:

Since, if it does RV a significant amount, we will all have some serious tax questions... why not discuss them now? If and when it RVs people will want to do things with their money "NOW!" so I, for one, think it would be a good idea to discuss these things now, before it RVs. Besides, it is a topic that everyone here should be on the same side of... how to keep from paying more tax than required.

[Henri]

I don't have a problem paying taxes BUT I hope the reval goes down before Obama changes the capital gains to 65% for income over $250,000 as has beed discussed.

[jefrog]

Originally Posted by sponners http://www.investorsiraq.com/images/styles/bgreen/buttons/viewpost.gif (http://www.investorsiraq.com/showthread.php?p=815140#post815140)
love it how people are soo worried about tax.

.......lets just get one tiny little thing out of the way first:rolleyes:

It is not that I am worried about tax. I am not. However, I feel that the tax system is highly abused and we end up forking over our money to who and for what?

First, let's make sure we establish what the original intent of the IRS was for...and just like the FED, the IRS is also.


The Internal Revenue Service is a bureau of the Department of the Treasury under the immediate direction of the Commissioner of Internal Revenue. The Commissioner has general superintendence of the assessment and collection of all taxes imposed by any law providing internal revenue. The Internal Revenue Service is the agency by which these functions are performed.
– 26 C.F.R. section 601.101(a).

Sorry...I digressed. The point I wanted to make here is that while paying taxes is necessary to help sustain our nation (especially now since we have all these bailouts going on), I want to know why the gov't feels entitiled to such a large percentage of money. Remember, purchasing dinar was a speculative investment. There is a lot of risk and no guarantee you will profit from the investment. So, you put YOUR hard earned money at risk, not the gov't. Talk about skimming off the top! We do all the hard work, take all the risk and the gov't says, "thank you" with their hand held out and get their cut. I simply find it heart breaking.

People should be worried about tax. The IRS has no mercy on people. You try to save a penny and they find out, you are done for. Do you know who Joe Lewis was? A patriotic man who served his country, a champion fighter who was ruined by the IRS and our gov't system.
No one is exempt and no one is safe.
As much as I do not like it, someone posted, "give to ceaser what is ceasers". We are not above the law so we have an obligation to do what is right. Finally, people who have no experience dealing with the IRS having big money can be taken advantage of. Wise counsel is needed and people are looking out for their interests.

<stepping off soapbox>

[13ARROWS]

....ddd had one question that was not answered....can we go overseas and open an account?:wondering:

[v1rotv2]

....ddd had one question that was not answered....can we go overseas and open an account?:wondering:

but you will still owe the cap gains tax. No matter where in the world you have or earn income, unless exempted by law, you still owe U.S. tax. There is no such thing a tax free offshore account. What has happened was people were hiding income in offshore accounts. But all that has changed for the most part because of new agreements between the U.S. and these other countries.

[waitingonthedinar]

Greetings All, I am newer than a newbie. I have been a frequent visitor to this site, but decided to stay on the sidelines and just try to educate myself as best I could from the subject matter experts. My question revolves around cashing in Iraqi Dinars and taxes to be paid upon doing so. Let's say I had a million Dinars here in the U.S. and for arguments sake it was RV'd and was 1 to 1. If it was exchanged and I then had a million USD would I expect to pay about 28% of that in taxes? If this is about right, can this legally be avoided and/or sheltered well below that? Is there a way legally to get it out of the country and in a bank abroad?

You will pay the appropriate Capital Gains tax, which depends on your annual income. Surely you would have offsets, right?

Welcome to the board and from your lips to God's ears......1:1

[DDDinar]

I did not receive bonuses down range that were taxed. I was speaking of reenlistment and MOS bonuses outside the combat theatre of operations. I am aware of the exepmtions for combat related duties and was educated by a few CSM/SGM's who were in the theatre for conferences that were conveniently scheduled at the end of a month and carried on for a day or two into the next month so they could all get tax exepmtions and combat pay for two months, while we were left to pound sand out of our you know whats for over a year on that deferred tour. Good and bad in all organizations. I want us to be on top of this if the RV comes. We have played our hands well thus far and the last piece of the puzzle will be when to cash in and how much tax will we pay on the money. If we go the LLC route, I think this has to be done before the RV or will be most beneficial if done before the RV. At any rate, we should be prepared and there is nothing wrong with legally keeping our taxes down. It appears many of you feel close to the way I do on some of this. That is refreshing for me, as I was beginning to feel like I was on an island and was just bitter. I am sure I will feel better when an RV comes, but God knows it makes me sick to think about how much tax I would have to pay. I think 15% is not too over the top and need to think how I can prove I have had it for over a year. Take Care, D

[Jungle Jim]

Welcome Welcome

I'll love to pay taxes, but first let's get our money:wondering:

[GenerationX]

In all the countries I have probed for the best interest rate and security both from the IRS and others. The 3 best seem to be Dubai, Panama, and Cyprus [in order of preference]. None of these countries report to the IRS. The Cayman Islands used to be a good tax haven but they were forced into disclosure by the USA in the Patriot Act. You will be required to pay taxes on the capital gains due. Interest earned on foreign accounts is reported as interest earned and taxed. There is no "safe" way to avoid the dreaded income tax. We have to pay for the Democrats spending sprees as it is our "duty" according to VP elect Biden. Just my opinion of course, refer to a Certified Tax Accountant. GenerationX

[jefrog]

In all the countries I have probed for the best interest rate and security both from the IRS and others. The 3 best seem to be Dubai, Panama, and Cyprus [in order of preference]. None of these countries report to the IRS. The Cayman Islands used to be a good tax haven but they were forced into disclosure by the USA in the Patriot Act. You will be required to pay taxes on the capital gains due. Interest earned on foreign accounts is reported as interest earned and taxed. There is no "safe" way to avoid the dreaded income tax. We have to pay for the Democrats spending sprees as it is our "duty" according to VP elect Biden. Just my opinion of course, refer to a Certified Tax Accountant. GenerationX
unless we reside outside the USA for 360 days, right?

[Ian C]

unless we reside outside the USA for 360 days, right?

I'm pretty sure as long as you are a US citizen you are expected to pay taxes on all monies earned anywhere in the world. Someone can correct me if I am mistaken.

[hotdog33]

We should all be happy we get to pay taxes. It doesn't matter where your view is from (left, right, middle, liberal or conservative) this is still the greatest country on the planet, and has more to offer than any other. And for my money if you don't like it do something vote, run for office, something more productive than whining on an online forum, or leaving is always an option.
I hear Somalia is beautiful this time of year.

[GenerationX]

IN ADDITION TO MY LAST POST. THE 3 COUNTRIES I PREFERENCED IN ORDER WERE BASED ON MONETARY SECURITY, PERSONAL SECURITY AND INTEREST RATES PAID ON YOUR DEPOSITS -DUBAI 11 TO 12&#37;. PANAMA 10 TO 11% AND CYPRUS 8 TO 9%. THIS IS 3 TIMES THE RATES YOU CAN GET IN THE US. ALL ARE ABOUT EQUAL FOR TRAVEL SAFETY DUBAI BEING RATED AT THE HIGHEST AT 86% BY SECURITY SOURCES FOR AMERICANS. DISTANCE WAS NOT CONSIDERED AS A FACTOR. EUROPEANS WILL FIND DUBAI AND CYPRUS APPEALING IN THIS FACTOR. PANAMA MORE ATTRACTIVE FOR AMERICANS INCLUDING CANADIANS. TAKING OUT A PERMINANT RESIDENCE STATUS IN EITHER OF THESE COUNTRIES AT THIS TIME IF YOU PURCHASE PROPERTY GIVES YOU A MAJOR EXEMPTION ON LOCAL TAX RATES AND IF YOU WORK IT RIGHT FREEDOM FROM US TAXES AFTER A PERIOD OF TIME, ALL THREE GIVE MAJOR CONSIDERATIONS ESPECIALLY FOR PENSIONERS [RETIRED] SOME HAVE NO AGE LIMIT. DUBAI GIVES A FLAT 50 YEARS EXEMPTION FROM ALL TAXES FOR MONEY EARNED IN THAT COUNTRY, CYPRUS VARIES BUT IS SOMEWHAT COMPETIVE BUT NOT QUITE AS GOOD. INTERNATIONAL LIVING JOURNAL IS WORTH SUBSCRIBING TO WITH GOOD ADVICE ON THE TAX STATUS FOR FREE AND PURCHASING REAL ESTATE AND COST OF LIVING. PANAMA IS A BEAUTIFUL TROPICAL COUNTRY WITH MOUNTAINS [HIGHLANDS] WHERE THE TEMPERATURE IS A FAIRLY CONSTANT 80* OR FANTASTIC BEACHES ON THE CARIBBEAN COAST WHERE BEAUTIFUL CONDOS CAN BE HAD FOR ABOUT THE REAL ESTATE PRICES IN TEXAS. DUBAI HAS BEAUTIFUL BEACHES WITH BEAUTIFUL CONDOS ABOUT THE PRICE OF CA. REAL ESTATE. COST OF LIVING IS ABOUT LIKE ALASKA. AGAIN CYPRUS IS SOMEWHERE IN BETWEEN. AS OUR ADVENTURE APPEARS TO BE CLOSE TO ENDING THERE IS A LOT OF HOMEWORK THAT HAS TO BE DONE. CYPRUS AND PANAMA BOTH HAVE GOOD OPEN LIQUOR LAWS IF NECESSARY FOR YOUR SURVIVAL, DUBAI BEING A MUSLEM COUNTRY, VERY RESTRICTIVE. jUST INFORMATION FOR THOUGHT AND LOOKING. AS ALWAYS DO YOUR OWN INVESTIGATION AND THERE MAY BE A PRIVATE JET AVAILABLE FOR A FEW TO GO TO PANAMA FOR A SMALL DONATION. REMEMBER 12% ON SIX MILLION DOLLARS WILL YIELD $720,000 PER YEAR. CAN YOU REALLY AFFORD TO RETIRE ON THIS AMOUNT? GENERATIONX

[jefrog]

GenX, thanks for the info!

[Deer Skinner]

I did not receive bonuses down range that were taxed. I was speaking of reenlistment and MOS bonuses outside the combat theatre of operations. I am aware of the exepmtions for combat related duties and was educated by a few CSM/SGM's who were in the theatre for conferences that were conveniently scheduled at the end of a month and carried on for a day or two into the next month so they could all get tax exepmtions and combat pay for two months, while we were left to pound sand out of our you know whats for over a year on that deferred tour. Good and bad in all organizations. I want us to be on top of this if the RV comes. We have played our hands well thus far and the last piece of the puzzle will be when to cash in and how much tax will we pay on the money. If we go the LLC route, I think this has to be done before the RV or will be most beneficial if done before the RV. At any rate, we should be prepared and there is nothing wrong with legally keeping our taxes down. It appears many of you feel close to the way I do on some of this. That is refreshing for me, as I was beginning to feel like I was on an island and was just bitter. I am sure I will feel better when an RV comes, but God knows it makes me sick to think about how much tax I would have to pay. I think 15% is not too over the top and need to think how I can prove I have had it for over a year. Take Care, D
I put my dinar in a safe deposit box back in 2005, and have nothing else in with it. I can show records of how many years I have had this box. I also have another one for personal stuff as well that I have had longer.

[WCKDinar]

Much of this is very very bad advise..... Muy estupido...

[Deer Skinner]

Much of this is very very bad advise..... Muy estupido...
Well, if your are referring to my reply as being very stupid, I'm sorry it does not match with your vast intellect. But it was not advice. I am not qualified to give advice. I was just stating what I have done. So you be sure to go with God, and please have a blessed day.

[tpr529]

I am talking to a certified professional..... that's what there out there for right? My accountant is top notch and trust him. I also have a broker, but he's cautious with investments....

[waitingonthedinar]

I am talking to a certified professional..... that's what there out there for right? My accountant is top notch and trust him. I also have a broker, but he's cautious with investments....


Sadly I am not financially well off to be talking to professionals. If this investment comes through beyond our wildest dreams maybe then....but first we need to get our money. Did your accountant have anything to say about your investment and can you share his knowledge with all of us. If I had sat down with these guys I would be happy to reveal what advice I was given.:happy:

[Templar62]

Anyone know about claiming dual - national citizenship and taxes ? Just a thought, so no Hating on the notion please.

[Stuck@Cedar]

I'm pretty sure as long as you are a US citizen you are expected to pay taxes on all monies earned anywhere in the world. Someone can correct me if I am mistaken.

You are correct. The only exception is that there is an exemption that you can qualify for if you reside outside the U.S. and its territories for at least 330 days in a 12 month period. It requires IRS form 2555 and is only up to eighty-some thousand dollars. I don't think you can deduct anything other than earnings from your employer.


...If this investment comes through beyond our wildest dreams maybe then....but first we need to get our money...

One thing about your wording. If the Dinar RVs, check with the financial experts BEFORE you get your money. They might recommend that you not cash it all in right away.

[Daddy Needs Mils]

Anyone know about claiming dual - national citizenship and taxes ? Just a thought, so no Hating on the notion please.

Hating???????????

Are you nuts? I'd be jealous if someone could get out of taxes legally and I didn't know about it.

[Ian C]

If we go the LLC route, I think this has to be done before the RV or will be most beneficial if done before the RV.

Do you know what tax benefits a LLC will provide? After all, any profits realized by the LLC will be the liability (for tax purposes) of the LLC members. Also, do you have any idea how to transfer ownership of physical dinar to an LLC?

[Templar62]

I am a citizen of Guam which is an Unincorporated U.S. Territory. We don't pay Federal Taxes out here and I was told that banking out here is not as bad as in the U.S.. But our local taxes are at 21&#37;. There's lots of dual-citizens out here and I was looking for further insight. On the not-so-wayside, the late Larry Hillbloom who was the "H" in the Company "DHL" became a citizen in Saipan (a nearby U.S. Corporated territory) and was able to avoid Federal Taxation. I'd also venture to say that alot of CEO's in the U.S. go this route.

[Fishindinar]

I am a citizen of Guam which is an Unincorporated U.S. Territory. We don't pay Federal Taxes out here and I was told that banking out here is not as bad as in the U.S.. But our local taxes are at 21%. There's lots of dual-citizens out here and I was looking for further insight. On the not-so-wayside, the late Larry Hillbloom who was the "H" in the Company "DHL" became a citizen in Saipan (a nearby U.S. Corporated territory) and was able to avoid Federal Taxation. I'd also venture to say that alot of CEO's in the U.S. go this route.

Do the banks over there have web sites? Gotta link?

[WCKDinar]

An IRS Audit is not worth the trouble...they can do some hard stuff to people they don't like...Be careful us an attorney and good CPA. Get a second opinion if you like...but if you haven't dealth with those guys....you are in for a real education...