Cashing In your Dinar

[Corwin]

I'm wondering how people are planning on "Cashing In" their Dinar when the time comes. I'd like to compare the options and hammer out the best possibility when the time comes.

:huge:

[rabilac2000]

in attempt to avoid high $ capital gains, the bulk of my dinar will continue to sit in the safe deposit box at my bank, but I will cash in just enough to pay off car loan and any other outstanding debts I currenty have (about $12k US total)...and have a little buffer zone to get us through the holidays. Would also like to be able to donate more towards Katrina disaster relief, if I can.

Once my dinar passes the 1 year mark, I plan on cashing it in and (hopefully) purchasing a home for my children and myself...and pumping up my retirement account...maybe take a trip...but those are all dreams for later...

[movetopi]

I work in Kuwait and I will go to a money exchange and then transfer it to the Philippines where I will buy a house for me and my wife. After that I will find a poor family buy them a house and cloths for the kids to go to school cloths for the husband and wife so they can get a job. Then I will sit back and relax and go fishing. :rolleye03 :rolleye03 :rolleye03

[momtoredheads]

why do you have to hold on to your dinars for one year after purchase to avoid capital gains? Are you saying that after one year you won't have to pay taxes on it? I purchased one million from Amer a few weeks ago. I've got it but I don't have any receipt. I didn't print out the one that came up immediately after my purchase and I did not get one emailed or one in my package. The only thing I have is my bank statement. Will that work as a receipt to show when I paid for it?

[pokerfool]

1. Another option that was not mentioned... send dinar to someone that is in Iraq and have them cash it in for you. Take a chance if you do not know them but you could send a small amount to them at a time to build trust. Of course they would want a fee.

2. The following has nothing to do with with your question of 'holding for a year'. The reason you would hold for a year is to reduce your capital gains. (do a search on taxes here... lots has been posted)

3. However, the following does point out a potential dilema that we all might face when it comes to 'cashing in'. I hope this will not be the case but it would be interesting to see some 'expert opinions' on this.

"Originally Posted by John M.
Essentially, they repatriated all the Marks back and exchanged (1 month to do all this) them at a rate of 5 (old) to 1 (new). They froze bank accounts for 1 year if they had more than the equivalent of $5k in an attempt to limit "War Profiteering"! They then pegged at $.31....I have been trying to find a link to this again; but it is there.
I know if they had a plan to deal with things (war profiteers) 60 years ago, they will try to work us somehow. I hope not; but could happen."

[Javabear]

is to go the Cayman Islands. No tax liability whatsoever since everything is done with secret accounts. Illegal as hell but the bankers in the Cayman Islands have lots of experience dealing with drug money. As far as capital gains tax goes, the differential between short term and long term is a year and a day. The letter of the law states that investments must be held over 1 year to qualify as a long term investment, so one more day makes a huge difference in your potential tax liability.

No, I'm not a CPA, but I did stay at a Holiday Inn Express last night. :happy64:

[Corwin]

why do you have to hold on to your dinars for one year after purchase to avoid capital gains? Are you saying that after one year you won't have to pay taxes on it? I purchased one million from Amer a few weeks ago. I've got it but I don't have any receipt. I didn't print out the one that came up immediately after my purchase and I did not get one emailed or one in my package. The only thing I have is my bank statement. Will that work as a receipt to show when I paid for it?

If you hold an investment for a year it goes from Short Term to Long Term Capitol Gains. Taking you down to only 15% tax rate (vs personal income rate in the 30%s)

Additionally - I AM NO TAX ACCOUNTANT!!! Verify this to be sure, you can use your visa bill as proof that you purchased dinar on a specific date. Also, talk to your dealer and see if he/she will send you a purchase order or a copy of the original order.

Corwin

[jammikell]

U ONLY PAY TAXES ON THIS MONEY WHEN YOU MAKE MORE MONEY OFF OF IT. SAY LIKE INTEREST IN BANK ACCOUNTS. THINK ABOUT WHEN YOU GO TO A FOREIGN COUNTRY AND CONVERT YOUR MONEY. BUT THEN WHEN YOU RETURN THEY DONT TAKE TAXES THEN EVEN IF THE MONEY IS MORE THAN WHAT YOU CONVERTED. SOMEONE CALLED THE IRS AND FOUND OUT THIS INFO. YOU DO NOT PAY TAXES ON CONVERTING YOUR MONEY. YOU ONLY PAY TAXES WHEN YOU MAKE MONEY OFF THIS MONEY. :ninja: :heart: :party:

[435613422]

in attempt to avoid high $ capital gains, the bulk of my dinar will continue to sit in the safe deposit box at my bank, but I will cash in just enough to pay off car loan and any other outstanding debts I currenty have (about $12k US total)...and have a little buffer zone to get us through the holidays. Would also like to be able to donate more towards Katrina disaster relief, if I can.

Once my dinar passes the 1 year mark, I plan on cashing it in and (hopefully) purchasing a home for my children and myself...and pumping up my retirement account...maybe take a trip...but those are all dreams for later...



don't donate to the Katrina relief fund. The money hardly go to the people who really needs it. You can donate directly to me:happy: , I am a victim. :bandit: :bandit: :bandit: :bandit: :bandit:

[Deer Hunter]

U ONLY PAY TAXES ON THIS MONEY WHEN YOU MAKE MORE MONEY OFF OF IT. SAY LIKE INTEREST IN BANK ACCOUNTS. THINK ABOUT WHEN YOU GO TO A FOREIGN COUNTRY AND CONVERT YOUR MONEY. BUT THEN WHEN YOU RETURN THEY DONT TAKE TAXES THEN EVEN IF THE MONEY IS MORE THAN WHAT YOU CONVERTED. SOMEONE CALLED THE IRS AND FOUND OUT THIS INFO. YOU DO NOT PAY TAXES ON CONVERTING YOUR MONEY. YOU ONLY PAY TAXES WHEN YOU MAKE MONEY OFF THIS MONEY. :ninja: :heart: :party:
I THINK we are all ASSUMING to pay capital gains taxes. BUT that is on investments AND IRS does not consider money, itself, to be an investment. Any sharp tax lawyers out there? I just assume IRS will find a way BUT MAYBE NOT. No use volunteering if it is not right or necessary.

[kelvinchau25]

If you hold an investment for a year it goes from Short Term to Long Term Capitol Gains. Taking you down to only 15% tax rate (vs personal income rate in the 30%s)

Additionally - I AM NO TAX ACCOUNTANT!!! Verify this to be sure, you can use your visa bill as proof that you purchased dinar on a specific date. Also, talk to your dealer and see if he/she will send you a purchase order or a copy of the original order.

Corwin


Question, is it one year from the date of purchase or is it one year from the date of revaluation?

[diablo]

I spoke to a tax attorney. I was told that capital gains tax DOES apply, short term and/or long term, also..... depending on your other sources of income for determining the rate of applicable tax.

Any "profit" or "gain" made is taxable, and this includes a rise in value, meaning.... you paid, say..... $100 USD for $100,000 IQD and we see a RV of 1:1. You would be responsible for paying taxes on the difference between the two ($99,900). State taxes apply in some states as well, along with interest gained.

I read the actual tax code somewhere on this site a long while ago ( a link was provided) that stated how profit from a rise in foreign currency is taxed... if someone can find that it may be helpful., I will keep looking myself.
I guess we will all find out the truth sooner or later.

Uncle ScAM wants his cut and you better believe he will be looking for it. Personally, I am going to cough up my legal share and disappear.:devil:

[Katt]

I will tentatively subject to change deposit my dinar stash in a variety of global banks. 25% U.S.in dollars, 55% off shore, Euro's.. Keep 20% on hand for use in primarily buying property. Things in which I can kick the tires..

I wouldn't put a penny into the stock market.

Katt

[Bart]

Question, is it one year from the date of purchase or is it one year from the date of revaluation?


kelvinchau25,

This investment appears to fall under capital gains, so holding for long term vs. short term will effect a different tax rate. (USA anyway)

On investments subject to capital gains, the holding term starts the day you purchased the the investment. In this case, it would be the day you bought your Dinar. And would apply separately to each batch of Dinars if you have multiple purchases.

A dated record of each transaction should do. Cancelled check, CC statement, paypal reciept, email verification from seller, bank transaction, etc. or other depending on how you purchased them. Save your cashout receipts as well.

Hope this helps.

Bart

[Toothpik]

i plan on going to the caymens as well. before i do, there is a few things to check on

1. make sure there is no way my ex will find out about it dont want child support to skyrocket
2. find out if it is true no taxes duentil converted to US DOLLARS...if true, will covet to euros and turn intrest ONLY TO US pay taxes on it

[irons]

5417:rofl: :rofl: :rofl:

[Deer Hunter]

Maybe. Maybe Not. Seems to be some different opinions what IRS thinks.

[SEABEE CAN-DO]

Still will not cash it in. Live in the interest. Still make more $$ each month than I have ever made in 1 year.

[Bart]

Maybe. Maybe Not. Seems to be some different opinions what IRS thinks.

This is true. I've seen many conflicting opinions as well, but hope it would fall under capital gains rates instead of income rates like I've also seen.

As a pipe dream, It would be awesome to see the fairtax enacted prior to cashout!

Bart

[tklincoln]

"Originally Posted by John M.
Essentially, they repatriated all the Marks back and exchanged (1 month to do all this) them at a rate of 5 (old) to 1 (new). They froze bank accounts for 1 year if they had more than the equivalent of $5k in an attempt to limit "War Profiteering"! They then pegged at $.31....I have been trying to find a link to this again; but it is there.
I know if they had a plan to deal with things (war profiteers) 60 years ago, they will try to work us somehow. I hope not; but could happen."



I agree. And that is why it is so important to have diverse holdings so that you can sell back through an exchange house or bank with any bearer bonds you hold.

[Al_Coholic]

If the value of my hard earned dollar rises over time I do not pay cap. gains on the difference after it has risen.

Why then do you have to pay cap. gains on the Dinars under the same scenario?

Has an expert posted here saying you must pay cap. gains?

Just a thought.

[creationworks]

I work in Kuwait and I will go to a money exchange and then transfer it to the Philippines where I will buy a house for me and my wife. After that I will find a poor family buy them a house and cloths for the kids to go to school cloths for the husband and wife so they can get a job. Then I will sit back and relax and go fishing. :rolleye03 :rolleye03 :rolleye03

Keith, I like your style. :flower:

[lightrays-dinars]

CGT is a tax on capital 'gains'. If when you sell or give away an asset it has increased in value, you may be taxable on the 'gain' (profit). This doesn't apply when you sell personal belongings worth £6,000 or less or, in most cases, your main home.
When do I have to pay CGT?
You may have to pay CGT if, for example, you:

sell, give away, exchange or otherwise dispose of (cease to own) an asset or part of an asset
receive money from an asset - for example compensation for a damaged asset
You don't have to pay CGT on:

your car
your main home - provided certain conditions are met
ISAs or PEPs
UK Government gilts (bonds)
personal belongings worth £6,000 or less when you sell them
betting, lottery or pools winnings
money which forms part of your income for income tax purposes
These are some points to bear in mind:

if you are married or in a civil partnership and living together you can transfer assets to your husband, wife or civil partner without having to pay CGT
you can't give assets to your children or others or sell them assets cheaply without having to consider CGT
if you make a loss you may be able to make a claim for that loss and deduct it from other gains, but only if the asset normally attracts CGT - for example you cannot set a loss on selling your car against gains from disposing of other assets
if someone dies and leaves their belongings to their beneficiaries, there is no CGT to pay at that time - however if an asset is later disposed of by a beneficiary, any CGT they may have to pay will be based on the difference between the market value at the time of death and the value at the time of disposal

[PeacefullyDejected]

kelvinchau25,



A dated record of each transaction should do. Cancelled check, CC statement, paypal reciept, email verification from seller, bank transaction, etc. or other depending on how you purchased them. Save your cashout receipts as well.



ok, what if we bought our dinar in iraq from iraqis? since theres no paper trail, does that mean people who went the same route as i did will have a harder time exchanging it? :sweating:

[mailman17]

I spoke to a tax attorney. I was told that capital gains tax DOES apply, short term and/or long term, also..... depending on your other sources of income for determining the rate of applicable tax.

Any "profit" or "gain" made is taxable, and this includes a rise in value, meaning.... you paid, say..... $100 USD for $100,000 IQD and we see a RV of 1:1. You would be responsible for paying taxes on the difference between the two ($99,900). State taxes apply in some states as well, along with interest gained.

I read the actual tax code somewhere on this site a long while ago ( a link was provided) that stated how profit from a rise in foreign currency is taxed... if someone can find that it may be helpful., I will keep looking myself.
I guess we will all find out the truth sooner or later.

Uncle ScAM wants his cut and you better believe he will be looking for it. Personally, I am going to cough up my legal share and disappear.:devil:
concur, currency is taxed as income. plan on 35%

[diablo]

concur, currency is taxed as income. plan on 35%

35% is the rate that I have been using to figure my situation. Could be slightly lower, probably not higher since I have held my dinar for well over a year. Here's to hoping:rock:

[geowhiz]

ok, what if we bought our dinar in iraq from iraqis? since theres no paper trail, does that mean people who went the same route as i did will have a harder time exchanging it? :sweating:


Without the receipts proving how long you had the dinar you may have to pay the higher cap gains of 28% if you want to cash in all at once at a bank, or just cash in in multiples of 10000 dollars or less per exchange. What I may do is hit 10 different airports in 10 different towns over the course of several weeks. (Assuming of course it becomes a Forex listed currency). Also take some to Vegas and exchange for chips, then exchange back to dollars.

There is also the possibility that people that were in Iraq and claim to have purchased dinar "for in-country use", may be exempted from cap. gains at all.

[Bart]

ok, what if we bought our dinar in iraq from iraqis? since theres no paper trail, does that mean people who went the same route as i did will have a harder time exchanging it? :sweating:

No paper trail wouldn't mean a harder time exchanging, just a record for proving holding time in the the event that it followed cap gains tax rules.

However, recent posts seem to indicate a single tax rate instead of capital gains. So in that case long term short term doesn't matter and receipt is irrelevant.

I'm going to look into this a bit further. I know the IRS code is complex, but I'm sure they have been watching this scenerio and have made some recent changes or clarifications. I'll post what I find.

Bart

[SEABEE CAN-DO]

Who needs to pay taxes. I have people If i want to avoid the whole tax. It will cost 15%. Not the 25 or so after state/feds and any other fees from banks. Cash for cash deal. Totally illegal but ....... It is not for me but for a fee I will put you in contact with them.:angel: I have dinar set aside for taxes and fees.

[Bart]

Who needs to pay taxes. I have people If i want to avoid the whole tax. It will cost 15%. Not the 25 or so after state/feds and any other fees from banks. Cash for cash deal. Totally illegal but ....... It is not for me but for a fee I will put you in contact with them.:angel: I have dinar set aside for taxes and fees.

Sorry, I'll pay my tax due, but not one penny more. Just need to find the proper category for filing.

Don't like orange jump suits and would rather not bunk with Mr. Snipes.

Bart

[Pimpmaximus]

If the value of my hard earned dollar rises over time I do not pay cap. gains on the difference after it has risen.

Why then do you have to pay cap. gains on the Dinars under the same scenario?

Has an expert posted here saying you must pay cap. gains?

Just a thought.

That's just it. Your dollar has never risen in value. It loses value each and every day. If you invested that dollar and made some profit off it, then you would be liable for taxes. How much depends on how long you held the "investment vehicle" (stock, foreign currency, etc.)

Buying foreign currency is considered an investment once you come to reclaim your USD. Until then, it's simply a novelty purchase.

[Pimpmaximus]

Who needs to pay taxes. I have people If i want to avoid the whole tax. It will cost 15%. Not the 25 or so after state/feds and any other fees from banks. Cash for cash deal. Totally illegal but ....... It is not for me but for a fee I will put you in contact with them.:angel: I have dinar set aside for taxes and fees.

I suppose that's a decision you get to live with. Whether I get 8 million or 10 million matters not. Perhaps you percieve an extra 10% as being worth the risk. More power to you.

[SuthernCharm]

1. Place the funds in a Trust Acct.
2. The Trust Acct can " buy " , or " pay off " any debt you have .
3. Buying the properties is not considered income , unless you make profit
from it .
4. Any personal income tax you might pay would be from any other debt
relief you hold . (ie: credit cards , car , etc. )
5. Have the Trust Acct. pay you ( the Chairperson ) a certain amount
to oversee it , and any other expenditures that you may have .
Just a thought !!

[4Iraq]

I don't want to wait until after I get out of jail to enjoy my winnings so I will pay my taxes first and enjoy the rest of my free life second.

[Corwin]

Question, is it one year from the date of purchase or is it one year from the date of revaluation?

It's from the Date of Purchase.

The Iraq govt's "revaluation" is not a concern of the IRS. ;)

Corwin

[taro patch II]

I spent some time on the phone with the IRS the other day, spoke with the "Complex tax law" extension that handles foreign currency, they said no tax due as capital gain, interest earned would be, but not the conversion. Then spoke with the "schedule D" extension that handles capital gains, their publication 525 does not deal with conversions of currency, and was quoted that this is not an investment, and that currency is valued differently than stocks or bonds, so long as you are not in the currency futures business, private funds held in cash or currency is not the sale "of anything," only an exchange of currency. I then asked for a ruling, or code that I could quote if I should need to defend my position and was then transfered to the "complex individual issues" department. I was agian told that there was nothing in the code that says an exchange of currency is a capital gains, again so long as you are not a proffessional currency trader. It is not a capital gain because it is not the sale of anything. Currency exchange is treated as an exchange and not the sale of an assett.

They all told me the same thing.

I should note that you should do your own due diligence, that the above may be entirely incorrect.

I did present the situation as that I had been holding Euro for over 5 years.
Didn't get into the Dinar. I plan on taking this up on my next 2 hour phone call to the IRS. I will post if anything other outcome is presented.

[bikey]

I spent some time on the phone with the IRS the other day, spoke with the "Complex tax law" extension that handles foreign currency, they said no tax due as capital gain, interest earned would be, but not the conversion. Then spoke with the "schedule D" extension that handles capital gains, their publication 525 does not deal with conversions of currency, and was quoted that this is not an investment, and that currency is valued differently than stocks or bonds, so long as you are not in the currency futures business, private funds held in cash or currency is not the sale "of anything," only an exchange of currency. I then asked for a ruling, or code that I could quote if I should need to defend my position and was then transfered to the "complex individual issues" department. I was agian told that there was nothing in the code that says an exchange of currency is a capital gains, again so long as you are not a proffessional currency trader. It is not a capital gain because it is not the sale of anything. Currency exchange is treated as an exchange and not the sale of an assett.

They all told me the same thing.

I should note that you should do your own due diligence, that the above may be entirely incorrect.

I did present the situation as that I had been holding Euro for over 5 years.
Didn't get into the Dinar. I plan on taking this up on my next 2 hour phone call to the IRS. I will post if anything other outcome is presented.

thanks for your efforts taro! please keep us updated! i just figure a straight 30% off because i hear conflicting amounts. im not sure what bracket i would fit in because ive had no income for 3+yrs. but i didnt keep all my receipts from date of purchase either. i have the recent ones since i read it in the forum but the ones from '04 and '05 i mustve thrown awaysince they arent in the safe with the dinar.:crying2:

[Deer Hunter]

That's just it. Your dollar has never risen in value. It loses value each and every day. If you invested that dollar and made some profit off it, then you would be liable for taxes. How much depends on how long you held the "investment vehicle" (stock, foreign currency, etc.)

Buying foreign currency is considered an investment once you come to reclaim your USD. Until then, it's simply a novelty purchase.
I am not sure, nor convinced, that buying foreign currency is considered AN INVESTMENT, according to our terms or IRS terms. Somebody better make sure and not just assume in a statement like that. You may be misleading a lot of people.

[Daddy Needs Mils]

I spent some time on the phone with the IRS the other day, spoke with the "Complex tax law" extension that handles foreign currency, they said no tax due as capital gain, interest earned would be, but not the conversion. Then spoke with the "schedule D" extension that handles capital gains, their publication 525 does not deal with conversions of currency, and was quoted that this is not an investment, and that currency is valued differently than stocks or bonds, so long as you are not in the currency futures business, private funds held in cash or currency is not the sale "of anything," only an exchange of currency. I then asked for a ruling, or code that I could quote if I should need to defend my position and was then transfered to the "complex individual issues" department. I was agian told that there was nothing in the code that says an exchange of currency is a capital gains, again so long as you are not a proffessional currency trader. It is not a capital gain because it is not the sale of anything. Currency exchange is treated as an exchange and not the sale of an assett.

They all told me the same thing.

I should note that you should do your own due diligence, that the above may be entirely incorrect.

I did present the situation as that I had been holding Euro for over 5 years.
Didn't get into the Dinar. I plan on taking this up on my next 2 hour phone call to the IRS. I will post if anything other outcome is presented.

Sounds too good to be true.

The IRS always seems to have disclaimers. As with thier "help" in assistang you with taxes, their disclaimer tells you that YOU are responsible for any mistakes, regardless of IRS' incompetence.

Tread lightly, or pay for a good accountant.

[ComingtoDinar]

All you guys who are planning to pay taxes on this should have gotten a huge tax rite off for any dollars you held last year since in declined so much. There are countries with no income tax or Capital gains or an illegal over- zealous IRS system in place where people live in fear. So much for the Home of the free and brave. I will be headed to Panama since Swizzerland is only catering to old money as far as taxes are concerned.

[RoyalBeluga]

Are people prepared with their dinars? I mean is everyone 100% sure the serial numbers are legit?

[435613422]

For the big RV, do you pay 35% income tax after the exchange spread from the bank or before the bank spread?

[Toothpik]

For the big RV, do you pay 35% income tax after the exchange spread from the bank or before the bank spread?
i dont plan on paying taxes on my dinar AT ALL. from what i understand, no taxes DUE UNTIL YOU CONVERT TO US DOLLARS. My plan is basicly, go to caymen islands, open 2 acounts. Deposit dinar in one ( will leave money in dinar NOT convert to US funds ) have INTREST transfered then changed to US funds and pay taxes on it. I will be double checking all of this before the plan is put into motion.:cool-too:

[Toothpik]

is to go the Cayman Islands. No tax liability whatsoever since everything is done with secret accounts. Illegal as hell but the bankers in the Cayman Islands have lots of experience dealing with drug money. As far as capital gains tax goes, the differential between short term and long term is a year and a day. The letter of the law states that investments must be held over 1 year to qualify as a long term investment, so one more day makes a huge difference in your potential tax liability.

No, I'm not a CPA, but I did stay at a Holiday Inn Express last night. :happy64:
i have heard of paperwork before that can be filed with a lawyer that wll PERMANENTLY keep you from paying taxes at alll. However, you will never recieve social security and some other perks. It may be worth checking into in this situation.

[435613422]

^ who would need SS when you are rich. We younger generation won't be getting SS in the future anyways. That is way they are promoting 401k like crazy, and even though we are in 401k, it is risky too...is it?

[TreasureHunter]

If the value of my hard earned dollar rises over time I do not pay cap. gains on the difference after it has risen.

Why then do you have to pay cap. gains on the Dinars under the same scenario?

Has an expert posted here saying you must pay cap. gains?

Just a thought.


..............When the VALUE DROPS!:lipssealed: ........They sure don't let you claim a loss and give you a TAX CREDIT!!!:wondering:


If they did.........
Our Dollar probably wouldn't in the shape it's in!:rolleyes:

[435613422]

yep, yep. what a gov't we have

[ironman6626]

I plan to take a cruise ship from Florida to the Caymens and while the tourists all climb off to do an excursion day trip. Walk down the plank straight to a bank. :cash:

[435613422]

^better hope the ship stays the whole day then. lol

[TreasureHunter]

.........then see the look on their face when I walk in and ask for it in $10's and $20's!!!:rofl:



:yes:

[War Eagle]

I MUST alert everyone that Warka Bank has signed on to the Patriot Act, and all big transactions WILL be reported to the Feds. JUST a warning!!!!

[GottaDash]

Google "asset preservation" - that should get you started.

Surround yourself with experts - accountants, lawyers, professional investors.

Do what's right 4 YOU and do your OWN homework.

If you have a question about currency and long-term investments in the US - talk to a professional!

Good luck to all.

[RoyalBeluga]

Google "asset preservation" - that should get you started.

Surround yourself with experts - accountants, lawyers, professional investors.

Do what's right 4 YOU and do your OWN homework.

If you have a question about currency and long-term investments in the US - talk to a professional!

Good luck to all.

I risked hard earned money buying dinars and stocks in the hope I'll become rich and have money I never had before. Why would I want to be surrounded by these people to tell me what to do with my money, even THEY will want paying for their services in spending MY money. No thanks. I'll decide for myself what to risk and where. :nod:

[NotAPHD]

Google "asset preservation" - that should get you started.

Surround yourself with experts - accountants, lawyers, professional investors.

Do what's right 4 YOU and do your OWN homework.

If you have a question about currency and long-term investments in the US - talk to a professional!

Good luck to all.


Well, if you can afford to, whatever works for you. :yes:

For those of us with limited dinar - after surrounding ourselves with that many experts we'd have no money left to even finish paying them! :rofl:

If you're a really high roller with lots of this stuff and you want investment advice and beyond, fine. If you've got just a generous amount, cash in at the bank, pay your taxes, sign your forms, enjoy the rest of your life before the Ice Age hits.

[lbbp930]

I live paychck to paycheck. If the bank charges a fee , fine. I have to pay taxes, fine. What I have left is a whole lot more then I had. As long as I can just lay back and enjoy life it is good.

[GottaDash]

I risked hard earned money buying dinars and stocks in the hope I'll become rich and have money I never had before. Why would I want to be surrounded by these people to tell me what to do with my money, even THEY will want paying for their services in spending MY money. No thanks. I'll decide for myself what to risk and where. :nod:


Well, if you can afford to, whatever works for you. :yes:

For those of us with limited dinar - after surrounding ourselves with that many experts we'd have no money left to even finish paying them! :rofl:

If you're a really high roller with lots of this stuff and you want investment advice and beyond, fine. If you've got just a generous amount, cash in at the bank, pay your taxes, sign your forms, enjoy the rest of your life before the Ice Age hits.

Definitely was not trying to offend with my statement. I have found that people who do well in these situations (overnight millionaires, etc) keep their riches by working with experts. I don't profess to know much about asset preservation, so in our case, we will talk to experts (hubby and I). THEN, we will make our own decisions. But, as you both have expertly pointed out, do what's best for you (which is what I was trying to say with the research part - it didn't come out well though.):yes: Cheers! Dash

[outkold]

If I pay an expert $500 an hour and use 10 hours of his time and he can save me from paying 35% in taxes and my ex from taking half of what is left. I see it as money well invested. Then start a S Corp in Nev that saves me from paying taxes on trips and vacations and property I buy. I will be a happy camper. :dance:

[GottaDash]

If I pay an expert $500 an hour and use 10 hours of his time and he can save me from paying 35% in taxes and my ex from taking half of what is left. I see it as money well invested. Then start a S Corp in Nev that saves me from paying taxes on trips and vacations and property I buy. I will be a happy camper. :dance:


Thank for saying what I apparently could not.

There are ways, and you mentioned one - other people in past threads have mentioned more - to control all of your money but own none of it (it's being a pauper on paper). So, when that A**hole that cuts you off and causes you to run into him on the highway decides to sue you and take every penny, guess what you don't have a peeny to your name. He can't take your yacht, your house, Addy's new Aston Martin, because Addy doesn't own it. His offshore corporations and Nevada C corps own everything - Addy just controls it all. How much would you pay to have security like that?

I'd pay alot - then I'd try to write it off, with an accountant's help of course. :clapping:

But, as my original post said...Do your OWN research and do what's right 4 YOU."

[Brantleybev]

There are many money exchange offices that are charging less to exchange than the banks. They are opening 3 new locations to handle the rush to exchange the money. You have to fill out a 1099 and a foreign exchange form
104. Uncle Sam knows this money is out there and can pay for the war with taxes alone. I am told that if you haven't had you money a year it is treated as income and have to pay regular income/state/federal taxes in the 1st quarter after cashing in. Got to get the revenue in before Bush leaves the Office. There are Bonds out there that you can put your money in and pay the taxes as you use it. Either way you don't want the Feds looking for you, trust me they know who we are, cash in , pay taxes and enjoy!:nod::nod::nod::nod:

[barney]

All of your comments are right on GOTTA DASH. If you have a lot after exchange, make sure you pay your taxes and get help protecting yourself and your money.
The tax man will find you, and the scammers and unchecked spending will whittle away at you.
DUE DILIGENCE.

[Lookn4Gold]

I spent some time on the phone with the IRS the other day, spoke with the "Complex tax law" extension that handles foreign currency, they said no tax due as capital gain, interest earned would be, but not the conversion. Then spoke with the "schedule D" extension that handles capital gains, their publication 525 does not deal with conversions of currency, and was quoted that this is not an investment, and that currency is valued differently than stocks or bonds, so long as you are not in the currency futures business, private funds held in cash or currency is not the sale "of anything," only an exchange of currency. I then asked for a ruling, or code that I could quote if I should need to defend my position and was then transfered to the "complex individual issues" department. I was agian told that there was nothing in the code that says an exchange of currency is a capital gains, again so long as you are not a proffessional currency trader. It is not a capital gain because it is not the sale of anything. Currency exchange is treated as an exchange and not the sale of an assett.

They all told me the same thing.

I should note that you should do your own due diligence, that the above may be entirely incorrect.

I did present the situation as that I had been holding Euro for over 5 years.
Didn't get into the Dinar. I plan on taking this up on my next 2 hour phone call to the IRS. I will post if anything other outcome is presented.


............It looks like someone spoke with the IRS and presented a better representation of what I did !!

I bought some Dinars with American money.......because it seems obvious that our money is virtually worthless.

Some day I will convert it back to a currency that I can spend here.......when it is worth something !!

I'm not investing in Iraqi Dinar.........just exchanging currency !!!

Lookn4Gold

:wink:

[Old Cutterman]

Have heard the following onboard here in regards to IRS participation in our investments:

1) Short/long term captial gains tax will be due to IRS
2) Full taxes due at your income rate (35%, etc.) will be due to IRS
3) No taxes at all on currency exchanges will be due to IRS

What is it ? Wondering does anyone have an DEFINITIVE ANSWER, backed up by something in print, for us (or is it all "speculation" too ?) ?
Old Cutterman

[Deer Hunter]

I risked hard earned money buying dinars and stocks in the hope I'll become rich and have money I never had before. Why would I want to be surrounded by these people to tell me what to do with my money, even THEY will want paying for their services in spending MY money. No thanks. I'll decide for myself what to risk and where. :nod:
Your right. IF I listened to anybody of PROFESSIONAL STATUS, I would have NO DINAR today. Most I did talk to did not invest. I THINK one banker did buy a little.

[435613422]

For the big RV, do you pay 35% income tax after the exchange spread from the bank or before the bank spread?

[sun city]

Have heard the following onboard here in regards to IRS participation in our investments:

1) Short/long term captial gains tax will be due to IRS
2) Full taxes due at your income rate (35%, etc.) will be due to IRS
3) No taxes at all on currency exchanges will be due to IRS

What is it ? Wondering does anyone have an DEFINITIVE ANSWER, backed up by something in print, for us (or is it all "speculation" too ?) ?
Old Cutterman


Who's on 1st
What's on 2nd
I don't know is on 3rd
:happy64:

[HisMoney]

Has anyone considering going to the ME to cash in their dinar? I was thinking of a trip to Dubai and then flying into Iraq to cash in. Any thoughts? Would I be saving a huge fee charged by our US banks by doing this? Sorry, but this is all new to me and I guess I sound quite naive.

[nevertoolate]

If you sell your dinar to an currency dealer. You only pay 2- 4% on the exchange. Then you pay tax's at the end of the year.
Buy doing that the overallof pay exchange rate and tax's is less.

[TBT]

As far as cashing goes, keep it simple at first. Dont put more than 250k in a bankaccount because its FDIC protected. Second, Think of cashing in dinar under an llc in nevada because it has advantages. A trust is a good idea also. Or if you have a lot, and you have a good heart consider setting up a foundation. However all the tax benifits that had to do with long term investments may be moot because unless you got your dinar through an investment company you shouldnt have to pay taxes. Its currency not an investment! BUT the next Pres could change the tax laws so fast it would make your head spin. So get it done, you will have a few days of a windon before he takes office.

[Deer Hunter]

Everybody is guessing at everything. Don't believe most of what you see or hear. Chances are that 9 out of 10 are wrong. You will not find out answers until after you file your taxes. Then 5 different IRS examiners will have 5 different opinions about your taxes and each will adjust to whatever gets the most out of YOU. I doubt THEY KNOW the CORRECT ANSWERS but will make it up as they go.

Lots of comfort in that.

[sunrock]

is to go the Cayman Islands. No tax liability whatsoever since everything is done with secret accounts. Illegal as hell but the bankers in the Cayman Islands have lots of experience dealing with drug money. As far as capital gains tax goes, the differential between short term and long term is a year and a day. The letter of the law states that investments must be held over 1 year to qualify as a long term investment, so one more day makes a huge difference in your potential tax liability.

No, I'm not a CPA, but I did stay at a Holiday Inn Express last night. :happy64:

Good luck, they are bigger crooks than we have here
and that is pretty bad.

[sunrock]

Has anyone considering going to the ME to cash in their dinar? I was thinking of a trip to Dubai and then flying into Iraq to cash in. Any thoughts? Would I be saving a huge fee charged by our US banks by doing this? Sorry, but this is all new to me and I guess I sound quite naive.
Good idea saving money, you'll need it for the funeral.

[guardian]

The U.S. is really cracking down on offshore accounts, even Swiss bank accounts lately. If you Google it, it's there.

[America]

550k is all I need to go debt free, after that I will exchange enough to pay those damn taxes. I will keep the rest locked up in my safe until further notice.

I think that the best bet is to hold off until the dust clears and wait and see which was the best way to cash these dinars in.





Fred

[JerseyGuy]

Personally I think that if you wait a year or even longer after the RV and the dinar becomes an actual real world traded currency it will be like any other currency on the market.

My plan is to first move to the Pacific side of Mexico where the fish are big and bikini's are small. At the airport I'll walk to the guy in the booth who exchanges money and in my best Iraqi pig latin ask to exchange enough to survive a few weeks, like 25,000,000 pesos.

But seriously, I am thinking exchanging money then will be as easy as it is today with other foreign currencies. Just keep it at an amount that stays off the radar and all should be okay.

[SULTAAN]

I will pay my taxes in full and relax for rest of my life.

[easethestress13]

lets cross that bridge, when we get to it....at this point i'm discouraged....5 years of money worth nothing...how long can these people last over there?

[WCKDinar]

If your interested in off-shore, read Goldstien and Starchild. There are CPAs and Attorneys who know this business and can keep you out of trouble. (you will be able to afford it) From past experience, the IRS is no one to mess with. All of this stuff on the blog is wrong if not crimminal....

[nevertoolate]

Hey Jersey Guy,
This is an ex-Jersey guy. I think you walk carfully a make decision as they come up. As you know Iraq will become part of the GCC IN 2010. That will effect the vaule of the dinar. I rather make my millions now and invested than take that chance. Myself I plan on having an another citizenship in another country were my money isn't tax so much.
Then I will teach myself how to trade stockes and currency,
The next currency to make money on I think is Vietman dong.
I'v been wtching that.
Best of luck

[JerseyGuy]

I looked at the Dong - haha - I just don't see it as an investment opportunity. What does Vietnam have to offer the world? What is their export that would be worth anything to anyone? They barely make the little toys you win on the boardwalk anymore. I just don't see that doing anything. At least the Dinar has a future - I don't know if it will rise 1 to 1 or not but with as much oil Iraq has it has to do something eventually.

[Sweetgirl1956]

I get tired of people misleading others on this site. I really did talk to the IRS complex law division and was told this:
1. Read Publication 525
2. Filed on Schedule D
3. IRS 988 in covered in this publication and covers cash in the drawer. The difference between what you paid for it and what you get is income. Long Term capital gains if you have had it longer than a year and it is taxed at 15%, some may be taxed at less or even 0% depending on your income. Held less than a year it is a short term capital gain and taxed at 35%.
4. I asked her about opting out of IRS 988 and thereby filing under IRS 1256, also in the same publication, which allows you to split your investment 60/40. 60% Long term capital gains and 40% short term capital gains. This would be beneficial for any dinar you have held less than a year. She said that I was asking a question that was complicated and they are not trained to answer the real complicated issues. She said I needed to talk to a tax attorney and tax accountant.
5. She also stated that this is an investment because it is bought with the anticipation of making a profit. She said that you need to claim your profit or loss at the end of every year that you are holding the investment. I asked her what about if I just bought a foreign currency to protect myself against the devaluation of the dollar. She said that it did not matter what my motivation was, if I made a profit it was taxable. I was trying to imply that I was not looking for a profit just protection. IT DOES NOT MATTER THIS IS TAXABLE. For those of you who have not claimed your profits or losses at the end of each year well....Lucy we have a problem....

[DDDinar]

I am supremely confident it is taxable and probably the long term and short term capital gain scenerio is probably applicable. The problem is as I see it is 35% tax should be criminal! Lets play a hypothetical: The dinar RV's 1 to 1 and I go to the appropriate bank, exchange my dinars and I am a multi-millionaire. I file my taxes at the end of the year (this year would be schweet!) and I claim my earned income as long term, but can not prove this, as it has been nearly five years and 11 moves later. The IRS is going to say prove it is long term, can I say prove it is short term? Your answere will be NO!, but why not. If I purposely file my taxes wrong (oh, like several congressional reps we know of!!!) the IRS has to prove it right if they wish to collect or prosecute me. The difference is I am not some regular Joe anymore. I am a millionaire that can get some serious representation. Have any of you heard of the IRS getting sued for wrongful prosecution and have to pay punitive damages? I am all for paying taxes, but 35% is something like shylock rates. I would drag my Soldiers kicking and screaming from loan establishments that tried to charge half this in interest. What really gets to me is the way many of us just say we will just pay our taxes and it is more money than I had before and yaddie yaddie! We have the power to cange the House, Senate, President etc. We have got to start fighting the good fight and quite letting these politicians lead us like sheep. Just because it is on the books does not make it right. Ya, I know it is not a fair world/life. It is this kind of non-sense that forces people with money to invest abroad instead in the homeland to shelter themselves or even move and claim dual citizenship or change citizenship. Whats that, that is unpatriotic? Don't let the door kick'em in the butt on the way out. Hey what did we fight the British for again in the revolutionary War? Was it unfair taxation without fair representation or something like that? We have not been fairly represented in a looooong time. In no way shape or form am I suggesting an uprising against our government. I love America and I have literally bled on foreign shores defending our constitution against all enemies foreign and domestic (or at least that is what they told me I was doing), but 35% is insanity. If you cash in and have 2 million dollars, you will have to pay $700,000.00!!! Yes you have 1.3 left, but that really is not a whole lot of money, espeially now and in the next 3-5 years. You know what I am freaking out thinking about 35%. I am going to do some meditation and call it a night.

[Sweetgirl1956]

If Obama has his way you will be considered elite and taxed at even a higher rate. He says anyone that makes over, I think it was, 150K a year should pay a higher tax percentage than those below that. I myself I am going to thank God for my blessing, pay my taxes, and go on a world beach tour. Sip wine and lay by the water.

[shockwave]

WOW !! You people actually pay taxes ?? Lets just keep it simple--If it RVs low exchange offshore and deposit offshore and keep your trap shut. If it RVs high exchange offshore (in your hand) and dont go back to the states for 13 months. But I still wouldnt talk about profit these days. They change the laws (tax) to suit themselves.
ie: stimulus??--Good luck with that.:yelrotflmao:

[Adster]

This thread was started 4 years ago! :eek: 4 years on and here we are, :rolleyes: Wonder what ever happened to Corwin? :confused: I often think of him. :yelrotflmao:

[Adster]

Perhaps in hindsight the poll should have been, 'do you think we'll dig up this thread in 4 years time?'. :yelrotflmao::yelrotflmao::yelrotflmao:

[Howler]

Perhaps in hindsight the poll should have been, 'do you think we'll dig up this thread in 4 years time?'. :yelrotflmao::yelrotflmao::yelrotflmao:



god I hope not Addy!

[Howler]

I get tired of people misleading others on this site. I really did talk to the IRS complex law division and was told this:
1. Read Publication 525
2. Filed on Schedule D
3. IRS 988 in covered in this publication and covers cash in the drawer. The difference between what you paid for it and what you get is income. Long Term capital gains if you have had it longer than a year and it is taxed at 15%, some may be taxed at less or even 0% depending on your income. Held less than a year it is a short term capital gain and taxed at 35%.
4. I asked her about opting out of IRS 988 and thereby filing under IRS 1256, also in the same publication, which allows you to split your investment 60/40. 60% Long term capital gains and 40% short term capital gains. This would be beneficial for any dinar you have held less than a year. She said that I was asking a question that was complicated and they are not trained to answer the real complicated issues. She said I needed to talk to a tax attorney and tax accountant.
5. She also stated that this is an investment because it is bought with the anticipation of making a profit. She said that you need to claim your profit or loss at the end of every year that you are holding the investment. I asked her what about if I just bought a foreign currency to protect myself against the devaluation of the dollar. She said that it did not matter what my motivation was, if I made a profit it was taxable. I was trying to imply that I was not looking for a profit just protection. IT DOES NOT MATTER THIS IS TAXABLE. For those of you who have not claimed your profits or losses at the end of each year well....Lucy we have a problem....



There is no "profit", or "loss", if it is just sitting in a shoe box (or safe deposit box)

Same same with Gold, silver, diamonds, your house, whatever.
Profit, or loss is only realized when you sell it. Thus the categories of short, or long term capitol gains.


Like she said, they are not trained to answer complicated questions. I'm guessing she was thinking about trading currencies on Forex. Then yes, you would have to file whatever gains or losses you had.

[4aprofit]

I get tired of people misleading others on this site. I really did talk to the IRS complex law division and was told this:
1. Read Publication 525
2. Filed on Schedule D
3. IRS 988 in covered in this publication and covers cash in the drawer. The difference between what you paid for it and what you get is income. Long Term capital gains if you have had it longer than a year and it is taxed at 15%, some may be taxed at less or even 0% depending on your income. Held less than a year it is a short term capital gain and taxed at 35%.
4. I asked her about opting out of IRS 988 and thereby filing under IRS 1256, also in the same publication, which allows you to split your investment 60/40. 60% Long term capital gains and 40% short term capital gains. This would be beneficial for any dinar you have held less than a year. She said that I was asking a question that was complicated and they are not trained to answer the real complicated issues. She said I needed to talk to a tax attorney and tax accountant.
5. She also stated that this is an investment because it is bought with the anticipation of making a profit. She said that you need to claim your profit or loss at the end of every year that you are holding the investment. I asked her what about if I just bought a foreign currency to protect myself against the devaluation of the dollar. She said that it did not matter what my motivation was, if I made a profit it was taxable. I was trying to imply that I was not looking for a profit just protection. IT DOES NOT MATTER THIS IS TAXABLE. For those of you who have not claimed your profits or losses at the end of each year well....Lucy we have a problem....


For those of you who have not claimed your profits or losses at the end of each year well....Lucy we have a problem....[/quote]

As for this last part of your post..here above.....does this simply mean that any dinars we have held, anything in an acct. at warka, anything in the isx, etc...must be reported each year, no matter how small of a gain we've had...or else?..Like, as saying we could be in trouble, or might cause a problem when the value rises to a large amount...if we were to go and cash in....into US dollars?...In other words, if our books have'nt been kept, and papers with the IRS been filed yearly...we could pay penalties...etc....JUST TRYING TO FIGURE THIS OUT!..Someone on here may know all of this..or can get it for us?...But, hyothetically...if one bought dinars, like for a souvenier, just like some who buy arrowheads, old paintings, old coins, etc...and then one day 5, 10, 20..or even 100 years later..find that it is very valuable...and didnt keep records and file yearly papers with the IRS on these artifacts, etc...would they be penalized for trying to cash in after selling these items for a large amount? THIS JUST SEEMS LUDICROUS!!!...because..I have a vehicle, that I found out is a rarity...worth a good bit..but not until recent years...kinda like fads that come and go...one day its not worth a lot, the next day it could be...like the dinar!...I also believe that if it was that critical for IRS filings of holders of dinars and investments thereof...it would at least seem that there would have been a notice of some type..even poissibly by the dealers..or on one of the forums...telling those investig in even a 50 note..that you must file an IRS form to hold this currency...this just seems logical?...Any ideas folks???

[manny]

What happens to short and long term capital gains if you have held your dinar over one year then sell it via private party or E-Bay then wire it to Warka. Does the capital gains start over. This could have huge tax disadvantage for moving your money to Warka if it re-sets the capital gains time.

[Nailbender]

The determination of percentage of taxation should be proven by the date on the receipt of purchase. Wouldn't the IRS require and honor that?

[shm925]

Not everyone has receipts, though, especially those that have received dinar as gifts.

[shm925]

The only true answer is the one we get after the RV. Trying to figure the tax implications would be an AWESOME challenge to have. Don't want to pay more than my fair share, but if I can come out of it with 65% tax free, that is fine by me. 65% of something is definitely better that 100% of nothing, IMO

[VelvetRevolver]

Remember The Government Works for You!

Not the other way around...

[Adster]

Remember The Government Works for You!

Not the other way around...

No, the government screws us. Noone is that naive surely. :rolleyes:

[WhiteFeather]

I would love for all of us to have this problem. :) WF
Meaning the original topic.
Oh Ya, SOON.

[acrtech]

Remember The Government Works for You!

Not the other way around...

HA HA HA HA HA HA HA HAHAA HEHEHEHEHEH HA HA HA HA :giggle::giggle::giggle::giggle::giggle::giggle::g iggle::giggle::giggle::giggle::giggle::giggle::gig gle::giggle::giggle:HA

[shm925]

Remember The Government Works for You!

Not the other way around...

Who are you trying to fool? :giggle::yelrotflmao::yelrotflmao::giggle:

[early_dinar]

There is actually no law that says that you must file taxes. I challenge anyone to find this if you think I am wrong. jfyi

[early_dinar]

It can't even be put in the books now because of all the damage seekers from past prosecution....verrrry strange. I was shocked when I heard of this. Doesn't the law have to be quoted in order to be guilty of not following it? what a joke ..lol

[Toothpik]

There is actually no law that says that you must file taxes. I challenge anyone to find this if you think I am wrong. jfyi

i have heard of this before, i heard that there is a form u must fill outevery year, but i have no clue which one it is. I wish i knew, Imtired of paying for other peoplesfood stamps. Dont get me wrong, if u need them thats one thing, but where i live, i have seen alot of manipulation of the system.

[waitingonthedinar]

I'm wondering how people are planning on "Cashing In" their Dinar when the time comes. I'd like to compare the options and hammer out the best possibility when the time comes.

:huge:

I am not as savvy as most of the members here, but from what I have read, if they indeed remove 3 zeros, I wouldn't think there would be much concern on taxing.

I guess if you have 50 million dinar that would be different, but I am a small investor, with only a million and I am not expecting too much based on the posts.

[Toothpik]

there is NO TAXES OWED until you convert to US dollars.......so if you eave it in dinar, swap to euros whatever........theres nothing to pay. If you go with this approach, take your intrest only, swap to US and pay taxes on just that. hope this helps.

[Free-Dinar]

Interesting,

My how things have changed over the past few years regarding capital gains taxes, we go from hearing of a reduction, to an increase, so how are people feeling about seeing this increase to go into effect later this year? How many will be making exchange in other than their home currencies? I know I will. lol

Success to all,

[shm925]

There is actually no law that says that you must file taxes. I challenge anyone to find this if you think I am wrong. jfyi

Don't know about that for sure, but just try NOT to file and see how fast Uncle Sam comes after you! :sweating: You couldn't get a big enough head start to outrun him. JMO

[Chaka]

i'd pile it all into a casket in the back of a "Coffin Cruiser"- nobody robs hearses
http://www.coffincruisers.com/http://www.coffincruisers.com/

[scuba]

I'm sure this has been hashed and re-hashed, but looking for more clarification on the tax laws. So if I understand correctly the Dinar investment would be taxed as capital gains (15% long term investment, and 28% short term), or would it be taxed as income therefore placing you in the highest tax bracket of 35%?:nerd:

[riteli]

Hi, I'm a newbie with a 'question'. I live in Puerto Rico (a territory of the US) and I'm a 3rd year college student. I don't work and the only 'income' I get is an unsteady allowance that my aunt gives me. I saved up some money and I, recently, bought some dinars from a dealer; I haven't had them for more than a year.

So I was wondering about the taxes that I have to pay; I've never even filed a tax return... I have absolutely no idea what percentage the government will tax me (not even a ballpark estimate), I just know that PR's awful government wants a piece of my (future) money, they've been changing some laws also. But my question is, does my not having a steady income/job/financial-history and being a student affect the taxes that I have to pay? I've never worked, and I have a very superficial idea of how these things work... sad to say I've never paid attention to these things until now... it all just seems so daunting.

I hope someone can understand this since I know my question was badly formulated, but I hope my point/doubt gets across. Thanks! :sweating::speechless::confused: :wave: