After Tuesday, it will be safe to RV the IQD.
I look forward to paying my capital gains taxes.
I know you could use the money.
So could I.
Your friend wishbone.
Supporter and Investor! 
Dear outgoing administration,
After Tuesday, it will be safe to RV the IQD.
I look forward to paying my capital gains taxes.
I know you could use the money.
So could I.
Your friend wishbone.
Supporter and Investor!
Today or next Tues? Reason Wishbone?Originally Posted by WishBone
Supporter and Investor!
I believe next Tuesday. Bush will be gone. Thats the way I'm taking it anyway. I sure hope your right!!!!!!!
Supporter and Investor!
myself and a few friends got some questions together and payed for time with both a tax attorney and a professional CPA:
1. regarding the type of income should an RV happen,
It would be considered regular income under section 988.
It would only be considered as capital gains if it were Interbank ForEx Spot, Forwards or Option contracts.
2. Is there an advantage to having Dinars exchanged into another foreign currency?
No, exchange will degrade the value due to fees charged.
If you are a US citizen or resident, it would make no difference where you exchange, it will be taxable in any case. Only beneficial if you do not return the currency back to the US.
3. Can the investment be considered capital loss if it fails
no, it would be considered ordinary loss, not capital loss.
just a few items to chew on...
If you don't like me or my humor
Don't Laugh!!!
Registered Member
Parliament postpones 2nd reading of 2009 budget
January 13, 2009 - 12:11:34
BAGHDAD / Aswat al-Iraq: The second reading of the 2009 federal budget in the Iraqi parliament was postponed until this Thursday, according to a media source from the office of Sheikh Khalid al-Attiya, the first deputy speaker of the council of representatives.
“The reading was postponed upon a request from the parliamentary financial committee,” the source told Aswat al-Iraq news agency.
“The committee wants to further examine the budget,” he said.
“A decision has been made to summon the minister of finance, Baqir Jabr al-Zobaidi, and the minister of planning, Ali Baban, on Thursday for this purpose,” he added.
Supporter and Investor!
I have kept records of my purchases,and am going to file taxes under the capital gains law.If the IRS disputes it,I will turn it over to one of several tax experts that advertise on tv and let them "duke it out"-can't go too far wrong!!!!!!!!!!!!!!!!!!!!!!IMHO
Supporter and Investor!
War Eagle ....Two words...
TRUST FUND.
Set it up before you cash out. Have a document proving that you gave the dinar to the trust. Then cash it out as a representative of the TRUST, and since you are the only one on the board of trusties... you can spend the funds however you see fit, you just no longer OWN it....
GENERATION SKIPPING TRUST, to be exact.
If Cap. gains are s till around, the only cap gains you pay is on the money MADE from the trust, say if you invest and get 10% back, if you spend it, you pay cap gains, if you re-invest back in the trust you pay NADA. Pay yourself a salary $75K and claim the appropriate number of dependants, you PAY your taxes, and you protect your assets.
Hell, there's even a way of securing this from a wife who may decide to act up after the money's made. As it is in a trust, and you DONT OWN any of it, but you represent them, she dont take half.
!!!
C'mon guys, we've been over this....
Registered Member
ETNs and Taxes**
Under the current tax law, commodity and equity linked ETNs are taxed as prepaid contracts. This means investors incur tax consequences only upon the sale, redemption, or maturity of their note. If held to maturity, the future payment of the contract is dependent on the value of the underlying benchmark index.
In December 2007, the U.S. Internal Revenue Service issued an adverse tax ruling on currency linked ETNs. The rule stated that any financial instrument linked to a single currency regardless of whether the instrument is privately offered, publicly offered or traded on an exchange should be treated like debt for federal tax purposes. This means that any interest is taxable to investors, even though the interest is reinvested and not paid out until the holder sells any such financial instrument, including an ETN, or the contract, matures. It also means that gain or loss on sale or redemption will generally be ordinary, and investors will not be able to elect capital gain treatment. The IRS is expected to rule on the tax treatment of ETNs linked to commodities and stocks.
Calculating the Indicative Value of an ETN
As debt securities, ETNs do not trade at or have a net asset value (NAV). Their daily indicative value is based upon the index level which is published daily by an index provider or media outlet. The purpose of calculating the indicative value of an ETN is to approximate the intraday economic value of the note. (See the equation below.)
Indicative Value = Principal Amount per Unit x Current Index Level/Initial Index Level minus Current Investor Fee
Registered Member
I am happy to pay $35 mil in taxes to IRS A.S.A.P.
Supporter and Investor!
How realistic is it though that it's going to go 1 to 1? I mean, if Sultaan is paying 35 mil in taxes on what he has, that means he has billions, he'd be the richest man on earth if it hit 1:1. I just don't see how this could happen.
Supporter and Investor!
btw not saying it couldn't, I just don't see how.
Supporter and Investor!
Excellent Advice!
War Eagle ....Two words...
TRUST FUND.
Set it up before you cash out. Have a document proving that you gave the dinar to the trust. Then cash it out as a representative of the TRUST, and since you are the only one on the board of trusties... you can spend the funds however you see fit, you just no longer OWN it....
GENERATION SKIPPING TRUST, to be exact.
If Cap. gains are s till around, the only cap gains you pay is on the money MADE from the trust, say if you invest and get 10% back, if you spend it, you pay cap gains, if you re-invest back in the trust you pay NADA. Pay yourself a salary $75K and claim the appropriate number of dependants, you PAY your taxes, and you protect your assets.
Hell, there's even a way of securing this from a wife who may decide to act up after the money's made. As it is in a trust, and you DONT OWN any of it, but you represent them, she dont take half.
C'mon guys, we've been over this....
Supporter and Investor!
that would kep my child support from kyrocketing too !!!!!!! abolutely perfect !!!
War Eagle ....Two words...
TRUST FUND.
Set it up before you cash out. Have a document proving that you gave the dinar to the trust. Then cash it out as a representative of the TRUST, and since you are the only one on the board of trusties... you can spend the funds however you see fit, you just no longer OWN it....
GENERATION SKIPPING TRUST, to be exact.
If Cap. gains are s till around, the only cap gains you pay is on the money MADE from the trust, say if you invest and get 10% back, if you spend it, you pay cap gains, if you re-invest back in the trust you pay NADA. Pay yourself a salary $75K and claim the appropriate number of dependants, you PAY your taxes, and you protect your assets.
Hell, there's even a way of securing this from a wife who may decide to act up after the money's made. As it is in a trust, and you DONT OWN any of it, but you represent them, she dont take half.
C'mon guys, we've been over this....
Supporter and Investor!
You make the term 'richest man on earth' sound unattainable like its make believe or something. A lot of people simply cannot comprehend the possibility of getting rich from this like its some kind of unattainable fantasy. What difference does it make WHO has the money? Why is it so hard to believe you can get stinking rich from this?
Supporter and Investor!
actually at a 35% tax rate that would only mean he had $100million gained.
If you don't like me or my humor
Supporter and Investor!
You and your friends need to ask for a refund on the atty/CPA fees - they missed the call on this one. Try searching this forum and you will find the answers backed up with links to the specific IRS Regs. I've been a CPA for 20+ years and finding the answer to this question on IRS.gov was a no brainer. The IRS even uses an example that shows this is capital gains.
When the Aliens come, they will eat the fat ones first...
Supporter and Investor!
Hey Sultaan, good info. But lets not confuse owning ETNs with holding Iraqi currency. Very different animals.
When the Aliens come, they will eat the fat ones first...
Registered Member
I am not just a piece of information.im keeping my horses and camels sap.
Registered Member
Iraq’s oil revenues are 174 % higher in 2008 – oil ministry
January 13, 2009 - 02:13:10
BAGHDAD / Aswat al-Iraq: The official spokesperson of the Iraqi Ministry of Oil on Tuesday said that Iraq’s oil revenues in 2008 were 174 percent higher than the expected level.
“Estimations in 2008 were $35.465 billion, while the achieved amount was $61.814 billion,” Asim Jihad told Aswat al-Iraq news agency.
“The revenues were deposited in Iraq’s account,” he added
Supporter and Investor!
You could be right, but the only thing I have been able to find on Section 988 appears to be concerning FOREX transactions. Since the Dinar is not on the FOREX, and I doubt that anyone's Dinar investments are FOREX related, I don't understand how this would apply. Then again, I haven't scoured the entire tax code looking for info on Section 988.
The part of the tax laws I plan to use to determine the method of taxing what I cash in is included in Publication 525. I started a thread on this a while back at http://www.investorsiraq.com/showthread.php?t=81966.
The exact wording of the applicable paragraph is:
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.
In my opinion, it would be pretty difficult to argue that the cash Dinar investments most of the people on IIF have aren't personal transactions. I could, however, see that argument being made if it was a FOREX transaction.
I do plan to consult with a financial adviser before cashing out and one of the things I plan to ask about is a trust fund such as Dakota77 referred to, as well as anything else I can find out about. I'm not trying to evade any taxes... just avoid as many of them as I legally can.
If the RV was to happen today, my current plan would not be to cash it all in to USD... especially if it was to be taxed at regular income rates as Golncor's post indicates. I would prefer to get the interest income from Warka on the entire amount than to only have about 2/3 of it to invest after taxes.
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