Process of Buying Dinars/Incorporating

[travis1888]

I have bought dinar under my personal name, but since have incorporated, I would like to know is there any way legally to show that my company actually owns the dinar and not me personally. This is of course to to reduce if not eliminate taxes all together on any gains in the future.

Thanks for any input

[hilljack13]

I have bought dinar under my personal name, but since have incorporated, I would like to know is there any way legally to show that my company actually owns the dinar and not me personally. This is of course to to reduce if not eliminate taxes all together on any gains in the future.

Thanks for any input

just the first thing that popped in my head...sell it to yourself...date the receipt for the past date..not sure if this is legal but then again who would know, they gonna put you on a lie detector.

[BABYBULL24]

Dont know how you can do it but I can suggest a good tax attorney and bail bondsman.

Peace


:huge:

[MEALTICKET]

I suggest putting it in a Iraqi account or open a bank.... LOL...Those that didn't go all the way with the Iraqis might pay. I would send it to WB

[hilljack13]

Ok so lets just say that we get a nice r/v and you take your money from warka and keep it in warka..only you move it to the USD account...Are you still liable to pay taxes on this? It still is at the same place of investment. Also lets say that the Warka checkbook/visa are usable from the US. Would you not be able to buy (assuming the checks would be accepted) with these? How would you pay tax on that????

[Colonel]

Pay for advice from a CPA and CFP.

I think this was covered already in a thread called "How to go from being wealthy to being a guest of the federal penal system" or something.

[Javabear]

Ok so lets just say that we get a nice r/v and you take your money from warka and keep it in warka..only you move it to the USD account...Are you still liable to pay taxes on this? It still is at the same place of investment. Also lets say that the Warka checkbook/visa are usable from the US. Would you not be able to buy (assuming the checks would be accepted) with these? How would you pay tax on that????

Yes you are liable for the tax because once you change it over to USD you have realized the gain. I'm still of the opinion that it is capital gains tax you would have to pay. You are also required to report foreign bank accounts to the IRS that are worth over a certain amount. I don't recall what the amount is. If you don't report the account, the IRS might find it anyway or they might not. All depends on tax treaties and whether or not Warka is reporting it to the IRS.

[louieknucks]

You only have to report it if you've had money in it during the current tax year correct? The reason I ask is because I just wired money to my account and haven't gotten the confirmation email that they have recieved my funds yet.

[mnatividad]

Hi Travis,

I'm curious to know your methodology on how you will reduce or eliminate your taxes on future gains if you are incorporated. Can you please share?

[a capitalist]

I have bought dinar under my personal name, but since have incorporated, I would like to know is there any way legally to show that my company actually owns the dinar and not me personally. This is of course to to reduce if not eliminate taxes all together on any gains in the future.

Thanks for any input

The corporation buys the NID from you (before any r/v)? The money used to buy the NID is from the corporation, either as an initial capitalization or as a loan from you. Just keep accurate records.

[mnatividad]

Hmmm... But how are you eliminating your or reducing your taxes. Your corporation will still have to relize the gains and pay taxes on it. Plus, if you distribute some of those gains to yourself, you 'll have to pay income taxes on that again. That's where double taxation comes in.

[Lux]

Hmmm... But how are you eliminating your or reducing your taxes. Your corporation will still have to relize the gains and pay taxes on it. Plus, if you distribute some of those gains to yourself, you 'll have to pay income taxes on that again. That's where double taxation comes in.

Through an S-Corp you can take a year end distribution (your company profit) and simply pay capital gains.

[Soliel]

Isn't that immoral and cheating? Sure it maybe legal, but you know very well, that it's for your own personal benefit. Why should those who have corporations be able to get away with this *rap???

I wonder how many millions or billions of tax money is being evaded for this very reason while the hardworking people who have no corporation must pay their fair share.

I hope you get busted.

[cmeshon]

Why worry about the taxs???? Personaly, with the amout of money we all (hopefully) will make, I will be glad to pay Uncle Sam his share.....

[investorino]

Isn't that immoral and cheating? Sure it maybe legal, but you know very well, that it's for your own personal benefit. Why should those who have corporations be able to get away with this *rap???

I wonder how many millions or billions of tax money is being evaded for this very reason while the hardworking people who have no corporation must pay their fair share.

I hope you get busted.

well thats not very nice now is it?

do you think that everyone who frequents this board are all lazy tax evading bums? I think not... more likely we are all hardworking tax payers looking for a legitimate way of keeping 100% of our investment because for many of us this is a bloody good way of digging ourselves out of a financial hole and pay our mortgages off.

If it so happens you can set up a company to save a bit on the tax bill and it is legal, why on earth not become a company? how can you possibly compare this situation with that of massive corporations?

at the end of the day this is all for personal gain, but if you are trying to apply a moral objection to one trying to save money on tax maybe you should first address your own shortcomings in resorting to a comment such as "I hope you get busted"

[Lux]

Tax Breaks Are Not Immoral
Every business ever created was for personal gain and tax breaks are the normal course of business for many governments seeking to stimulate growth - whether local, state or federal. Why? Because companies create jobs - not simply make people rich.

Many people who start their own businesses worker harder than the average 9-5'er and take on alot more risk in doing so. Self employment tax (paying the employer's share of SS and Medicare) is an added "bonus".

It is not immoral to start a company that buys dinars, but you had better research all your liabilities and laws concerning it.

Bottom line: Use tax laws to your benefit. Keep clear and transparent books and documentation. Don't lie.


Back To The Subject
As an INDIVIDUAL, you will pay a CAPITAL GAINS TAX on your dinar investment when you cash out. If it's over a year, it will be at 15%.

As an S-Corp, you will pay the same CAPITAL GAINS TAX if you do a distribution to yourself from your corporation at the end of the year at 15%. The worst move would be for your S-Corp to disburse you these gains as INCOME which is subject to a higher tax rate than Cap Gains.

As a C-Corp, you will subject yourself to double taxation.

Of course, there are very good reasons why these options exists and the only person who could give you the best answer is an informed tax advisor who can see your books and has an understanding of your personal finances as well as your financial goals.

[mnatividad]

Sportlux,

You've got it on the money. People definitely need to make sure they understand the consequences in incorporating themselves. S-Corp income will simply flow-through into your 1040 and taxed at the ordinary rate. You might also get stuck having to pay an $800 state tax for no reason.

[Soliel]

Mr. Sportslux

I earn all my income with two small businesses.

So I totally understand taking ones legal deductions, I do it all the time. I, being a business owner, think too high a taxes are immoral.

However, I will stand by my words. Why? Because flowing a Dinar investment, that is unrelated to the business at hand, and obviously for personal benefit, to avoid taxes, is, in my opinion cheating and immoral.

Sure, he may be able to get away with it...but karma is at work and if you steal you will be stolen from at some point, 10 times worse.

Whatever politicians allow this kind of activity should be voted out of office because it is just plain wrong to filter personal investments thru your business to avoid taxes.

Also, there is the issue of gratitude. If one's country made the investment even possible, one should have an attitude of giving something back instead of just thinking of themselves only.


Sign me

Soliel


Tax Breaks Are Not Immoral
Every business ever created was for personal gain and tax breaks are the normal course of business for many governments seeking to stimulate growth - whether local, state or federal. Why? Because companies create jobs - not simply make people rich.

Many people who start their own businesses worker harder than the average 9-5'er and take on alot more risk in doing so. Self employment tax (paying the employer's share of SS and Medicare) is an added "bonus".

It is not immoral to start a company that buys dinars, but you had better research all your liabilities and laws concerning it.

Bottom line: Use tax laws to your benefit. Keep clear and transparent books and documentation. Don't lie.


Back To The Subject
As an INDIVIDUAL, you will pay a CAPITAL GAINS TAX on your dinar investment when you cash out. If it's over a year, it will be at 15%.

As an S-Corp, you will pay the same CAPITAL GAINS TAX if you do a distribution to yourself from your corporation at the end of the year at 15%. The worst move would be for your S-Corp to disburse you these gains as INCOME which is subject to a higher tax rate than Cap Gains.

As a C-Corp, you will subject yourself to double taxation.

Of course, there are very good reasons why these options exists and the only person who could give you the best answer is an informed tax advisor who can see your books and has an understanding of your personal finances as well as your financial goals.

[Soliel]

I hope what you wrote in this paragraph is true b/c no one should be able to filter personal investments thru a business, to pretend it a "business expense" to avoid taxes. This seems fair to me.

Tax Breaks Are Not Immoral
Every business ever created was for personal gain and tax breaks are the normal course of business for many governments seeking to stimulate growth - whether local, state or federal. Why? Because companies create jobs - not simply make people rich.

Many people who start their own businesses worker harder than the average 9-5'er and take on alot more risk in doing so. Self employment tax (paying the employer's share of SS and Medicare) is an added "bonus".

It is not immoral to start a company that buys dinars, but you had better research all your liabilities and laws concerning it.

Bottom line: Use tax laws to your benefit. Keep clear and transparent books and documentation. Don't lie.


Back To The Subject
As an INDIVIDUAL, you will pay a CAPITAL GAINS TAX on your dinar investment when you cash out. If it's over a year, it will be at 15%.

As an S-Corp, you will pay the same CAPITAL GAINS TAX if you do a distribution to yourself from your corporation at the end of the year at 15%. The worst move would be for your S-Corp to disburse you these gains as INCOME which is subject to a higher tax rate than Cap Gains.

As a C-Corp, you will subject yourself to double taxation.

Of course, there are very good reasons why these options exists and the only person who could give you the best answer is an informed tax advisor who can see your books and has an understanding of your personal finances as well as your financial goals.

[amatullah67]

If the dinar is worth just of percentage of all the rumors we had to put up with last year , I will be happy to pay my 30-50% taxes.Why be greedy?Then i will make smart investments to recover what i pay in taxes in some tax free haven !You guys are putting the cart in front of the horse.Let it peg then worry about the tax planning.For now it is sitting tax free in our closets .

[Lux]

Mr. Sportslux

I earn all my income with two small businesses.

So I totally understand taking ones legal deductions, I do it all the time. I, being a business owner, think too high a taxes are immoral.

However, I will stand by my words. Why? Because flowing a Dinar investment, that is unrelated to the business at hand, and obviously for personal benefit, to avoid taxes, is, in my opinion cheating and immoral.

Sure, he may be able to get away with it...but karma is at work and if you steal you will be stolen from at some point, 10 times worse.

Whatever politicians allow this kind of activity should be voted out of office because it is just plain wrong to filter personal investments thru your business to avoid taxes.

Also, there is the issue of gratitude. If one's country made the investment even possible, one should have an attitude of giving something back instead of just thinking of themselves only.


Sign me

Soliel

I will tone down this conversation because I'm sensing a total misunderstanding on the purpose and the action of creating this business. You've even gone as far as mentioning stealing (to top your first post) and it's going too far.

No one is talking about taking "shady deductions" and playing "shell games" with an investment. I could open a business specifically purposed for the matter at hand of buying dinars or my business can invest in dinars. Businesses make money and will invest part of that money to make more money.

As I stated, there is no tax benefit (unless you come up with an elaborate plan to disperse money in ways that I doubt most here would even care to research).

As far as politicians are concerned, why do you think they keep the "distribution loop hole" open? Because most of them do it to avoid paying Medicare tax on "hundreds of thousands" if not, "millions of dollars", that THEY EARN.

I pay all my taxes and I do it gladly. I support my country and I believe in our system. People aren't dead beat taxpayers for simply looking for a perfectly LEGAL and MORAL way of managing their own money. In fact, many tax breaks exist to encourage people to explore business avenues that are either lacking or beneficial to others.

Paying a 30% tax rate versus a 20% tax rate (honestly and legally) doesn't make you a "more moral" of a person.

There is nothing wrong with paying your taxes, and there's absolutely nothing wrong with creating opportunities to decrease your tax burden.

It's just as American and the law that backs it up and the Constitution that supports that law. If the dinar is worth just of percentage of all the rumors we had to put up with last year , I will be happy to pay my 30-50% taxes.Why be greedy?Then i will make smart investments to recover what i pay in taxes in some tax free haven !You guys are putting the cart in front of the horse.Let it peg then worry about the tax planning.For now it is sitting tax free in our closets .
The lack of tax planning is what creates temptations for those who seek to evade taxes "after" their investments after they have matured. Those will be the ones setting up bogus paperwork for bogus companies and standing on the wrong side of the gavel when it's all said and done.

To those who are truly seeking to maximize your investment return, speak to a good tax advisor so you find out how you can best purchase and exchange your dinar.

Michelleirs is an IRS employee and answered a few questions regarding tax loopholes. Here's a good thread she posted on. She was fair and square about and even said she was looking for legal loop holes.

How To Avoid All Taxes (http://www.investorsiraq.com/iraqi-dinar/11203-how-avoid-all-taxes.html)


Respectfully,

:huge:
Lux

[Javabear]

Isn't that immoral and cheating? Sure it maybe legal, but you know very well, that it's for your own personal benefit. Why should those who have corporations be able to get away with this *rap???

I wonder how many millions or billions of tax money is being evaded for this very reason while the hardworking people who have no corporation must pay their fair share.

I hope you get busted.

How can you get busted for using a loophole in the law? Those loopholes were put there by our elected representatives in congress for themselves and thier wealthy contributors. They will just happen to benefit us as well.

[travis1888]

for all of you who don't know how a corporation works:
when you profit in a corporation and spend profits you are only taxed on the difference. For instance make 1000.00 spend 800.00 you are taxed on the difference of 200.00. So in the case that my corporation owns the dinar and it pegs that would be profit for my company and I will spend it through the company by acquiring more assets. By the way if you don't have a corporation it costs 300.00 and is by far smarter way of earning money on your money than the way you are doing it.

[Lux]

for all of you who don't know how a corporation works:
when you profit in a corporation and spend profits you are only taxed on the difference. For instance make 1000.00 spend 800.00 you are taxed on the difference of 200.00. So in the case that my corporation owns the dinar and it pegs that would be profit for my company and I will spend it through the company by acquiring more assets. By the way if you don't have a corporation it costs 300.00 and is by far smarter way of earning money on your money than the way you are doing it.
Exactly. You can use that money in your company to "grow" your company.

Acquiring assets is the path to true financial freedom.

Read Rich Dad, Poor Dad by Robert Kiyosaki - it's an excellent primer for those who are truly interested in understanding how money can work for you - and not you for money. The ultimate goal is to become an Investor (hey that sounds familiar :p).

By leveraging your investment returns, you can build a financial empire that will continue to generate profits, which you will ultimately pay taxes on. In fact, if you made ONE million dollars on dinars and then created a company that generates TEN million dollars, Uncle Sam will be very glad you did that. He'll be waiting at the end of that line to collect his money which will be alot more than what you would have paid in cap gains from you original dinar investment. The only difference is that you now have more than just a bag of gold, you have a machine that creates gold (oh oh, onepence alert).

You can set yourself and your families up for generations to come. All from an investment on a country that no one ever thought could recover.

If you simply want to cash out and buy a house and live happily ever after, then that's ok too.

:wave:

Lux

[MunnyBaggs]

If the dinar is worth just of percentage of all the rumors we had to put up with last year , I will be happy to pay my 30-50% taxes.Why be greedy?Then i will make smart investments to recover what i pay in taxes in some tax free haven !You guys are putting the cart in front of the horse.Let it peg then worry about the tax planning.For now it is sitting tax free in our closets .

I agree 100% Amatu. This subject comes up from time to time. If this thing "hits big" the last thing I want to do is fart around with Unkle Sam. Pay him his fair share of taxes, go to Hawaii, Set it and FOrget IT!!!!!!!!!!!!!!!!:D

[SteveBrown]

As I see it, investors already get a big tax break, paying only 15% on long-term capital gains. Meanwhile, working stiffs are having up to 35% of their earnings siphoned off by the IRS. I'll gladly pay the 15%, rather than try to weasel out of it by setting up a corporation. Just my opinion, no offense intended.

[Kuwaiti Ice]

I agree. Pay the 15% and be done with it.

[Jgraj]

Exactly. You can use that money in your company to "grow" your company.

Acquiring assets is the path to true financial freedom.

Read Rich Dad, Poor Dad by Robert Kiyosaki - it's an excellent primer for those who are truly interested in understanding how money can work for you - and not you for money. The ultimate goal is to become an Investor (hey that sounds familiar :p).

By leveraging your investment returns, you can build a financial empire that will continue to generate profits, which you will ultimately pay taxes on. In fact, if you made ONE million dollars on dinars and then created a company that generates TEN million dollars, Uncle Sam will be very glad you did that. He'll be waiting at the end of that line to collect his money which will be alot more than what you would have paid in cap gains from you original dinar investment. The only difference is that you now have more than just a bag of gold, you have a machine that creates gold (oh oh, onepence alert).

You can set yourself and your families up for generations to come. All from an investment on a country that no one ever thought could recover.

If you simply want to cash out and buy a house and live happily ever after, then that's ok too.

:wave:

Lux

Thanks Sportslux. That is a wise way to invest your money. I figured I would re-invest my money with what I make from this and creating an investment corporation is the way to go. I wouldn't mind paying the 15% or even 30% but why not do it this way and it's perfectly legal.

I have invested in Tax liens and I learned that the best way to own those liens are to create an LLC or corporation. I havn't done that yet but I found out that it's better to do that instead of individually.

[Lux]

When it has come up, most people have used ideas like setting up foreign bank accounts or cashing out small bills. That is not the topic here and please don't confuse good business discussion with fraud.

It's not about tax evasion, it's about leveraging your investment returns to acquire assets that will generate wealth and, of course, more taxes (Uncle Sam is smiling right now). I don't mind paying 10 times more taxes if I'm making ten times more money.

Does anyone here contribute to a 401k BEFORE TAX? Is there anything wrong with it? My idea has the same principal. By investing your dinars, you defer your tax payments and your unleash the entire power of your investment on growth. When you cash out your 401k, you will be paying MORE TAX in total because your portfolio will be worth alot more. Uncle Sam knows this and loves this idea. That's why he invented it. Why do people invest BEFORE TAX? Because they leverage the money they would be paying in taxes over the course of the 401k investment. The power of money is incredible.

Creating wealth requires thinking process that the average person is not accustomed to. I know because for years I was pretty average and thought I simply had to go to work, pay taxes and die nicely. That is not the case.

By setting up a corporation and acquiring assets, you are opening doors towards financial freedom. Not by ripping off the government, but by using your profit to build your company. If your company re-invests it's profit, you can grow faster and quicker than you would by liquidating your investments.

Like I said, buy a house or move to Hawaii - nothing wrong with that, but Uncle Sam will be much happier with the yearly taxes he will be getting from my corporation than he will from your one time cash out. :D

[Lux]

Thanks Sportslux. That is a wise way to invest your money. I figured I would re-invest my money with what I make from this and creating an investment corporation is the way to go. I wouldn't mind paying the 15% or even 30% but why not do it this way and it's perfectly legal.

I have invested in Tax liens and I learned that the best way to own those liens are to create an LLC or corporation. I havn't done that yet but I found out that it's better to do that instead of individually.
That sounds great! I work in banking and usually find myself trying to buy back those leins for our customers. Makes me scratch my head and say, why don't I do that! :)

[Packtoad]

Easy, easy Soliel.

The tax code is written ti INDUCE behavior from teh general populace.
Those who do not take FULL legal advantage of the rights and priveleges thereto are short changing themselves.:happy64: :happy64:

[bloptaptap]

why not just pay for a financial advisor they will do everything for you and keep all that legal stuff with them,.

[BABYBULL24]

Go ask Teddy (the swimmer) Kennedy or John (Ketchup Boy) Kerry or Jay Rockefeller how much tax they pay. Their family money is so locked up in Trust's that you couldn't shake a nickel out for taxes.

Gimme a break about taxes - pushing the envelope is the American way. Just dont get caught or you'll be crying harder then Willie Nelson when the IRS was auctioning off his gold records & bongs on his front lawn for delinquent taxes.


Peace

[Free-Dinar]

well thats not very nice now is it?

do you think that everyone who frequents this board are all lazy tax evading bums? I think not... more likely we are all hardworking tax payers looking for a legitimate way of keeping 100% of our investment because for many of us this is a bloody good way of digging ourselves out of a financial hole and pay our mortgages off.

If it so happens you can set up a company to save a bit on the tax bill and it is legal, why on earth not become a company? how can you possibly compare this situation with that of massive corporations?

at the end of the day this is all for personal gain, but if you are trying to apply a moral objection to one trying to save money on tax maybe you should first address your own shortcomings in resorting to a comment such as "I hope you get busted"


Exactly,

I agree, since when does opening a business or owning a business have anything to do with not paying taxes? Egads, of all the stupid remarks I have read, this takes the cake. Anyone with half a brain will open a business for business, not to avoid taxes. So if there is a capital gains tax to concern yourself with, opening a business can offset this to your advantage, legally, so don't condemn anyone just because they have a business. I will open another business just to handle my other Iraqi investments, so I plan on deferring capital gains over many years, not just cash out and run. (g)

Good luck to all, Mike

[Steverenos]

When it has come up, most people have used ideas like setting up foreign bank accounts or cashing out small bills. That is not the topic here and please don't confuse good business discussion with fraud.

It's not about tax evasion, it's about leveraging your investment returns to acquire assets that will generate wealth and, of course, more taxes (Uncle Sam is smiling right now). I don't mind paying 10 times more taxes if I'm making ten times more money.

Does anyone here contribute to a 401k BEFORE TAX? Is there anything wrong with it? My idea has the same principal. By investing your dinars, you defer your tax payments and your unleash the entire power of your investment on growth. When you cash out your 401k, you will be paying MORE TAX in total because your portfolio will be worth alot more. Uncle Sam knows this and loves this idea. That's why he invented it. Why do people invest BEFORE TAX? Because they leverage the money they would be paying in taxes over the course of the 401k investment. The power of money is incredible.

Creating wealth requires thinking process that the average person is not accustomed to. I know because for years I was pretty average and thought I simply had to go to work, pay taxes and die nicely. That is not the case.

By setting up a corporation and acquiring assets, you are opening doors towards financial freedom. Not by ripping off the government, but by using your profit to build your company. If your company re-invests it's profit, you can grow faster and quicker than you would by liquidating your investments.

Like I said, buy a house or move to Hawaii - nothing wrong with that, but Uncle Sam will be much happier with the yearly taxes he will be getting from my corporation than he will from your one time cash out. :D



It would be wise and prudent to find as you have said LEGAL and Readily Available tax advantages, this is not immoral as some have stated it is good tax planning a wise use of your investment.

Pay your taxes, just make sure that it is the least amount possible that is why the tax codes is how many thousands of pages long, there are loopholes that you can drive a mack truck through - I intend to take my millions and have them grow- via these loopholes.

This investment will provide a very nice lifestyle for my family immediately and in the future. Don't forget to take an IRA Stretch as well - this will lower the amount of your minimum withdrawal that you have to take from your IRA when it matures allowing the principal to continue to grow.

[fallingstar]

Sportslux,

You are brillant. I totally agree and I am onboard with what you have said. I myself have 2 businesses that are INC. and I always search for every loop hole that is out there to reduce my tax liabiltiy. That is why the laws are there, they are written so that one can take advantage of them. There is nothing legally or immoral about it. Soliel, no offense but you are selling yourself short. Let me give you this, the rich keep getting richer b/c they have knowledge and they use it to their advantage, the poor gets poorer b/c they lack the knowledge and make excuses. Every man was created equal, but it is the individual that latches onto the knowledge that will exceed the ordinary. I commend anyone that has the knowledge, KNOWLEDGE IS POWER!