20 replies to this topic

[Heavyduty053]

I am going to offer my opinion on this subject, first off let me say that i have read all the articles offering opinions as to what we will pay when this Re-value happens. Also let me say you are responsible for your taxes and you can rest assured the IRS is gonna want their share and more if they can legally get it. You will have to feed the monster that has a whale of an appetite. Currency to currency exchanges has been the subject many many times and no one can put a finger on the true answer. Offers of opinions is all that can be found. Sure if you ask an IRS agent they are gonna tell you a rate which suits them because of the amount of money that will come forth. Asking a CPA will not accomplish anything because they have no idea because they go by what on the law books, they have never had to deal with anything like this before. Just any lawyer or tax lawyer sometimes still will not be the answer because they will offer an opinion on what they think and sometimes they will play it safe when they offer their advise to you. Remember an interpretation of the IRS code is an opinion and it will differ from person to another as to how they understand it, even then some can't agree on it.

Yes, we are responsible for our taxes and we will have to pay them or at least you better have common sense enough not to try to slide by unnoticed. There is no debtors court but there is evasion of taxes and you will go to jail. Do i like what the govt does to us, NO because that monster has grown into a beast with what is just and right. Even tho you may not like the outcome of the tax rate, just be like me and bite the bullet and pay what is due, get them off your backs and off their radar and then you can enjoy a little piece of mind knowing that you are finished with them. The only thing that will come after that is only taxes on investment interest made if there is any.

I don't know about the rest of you but with all the replys of how we will be taxed, Capital gains, ordinary income or what ever i will seek out the opinions of several tax lawyers not just one because we are dealing with a large amount of money to be paid in and i for one do not want some person who is having an arrogant day because he had a arguement with his wife the night before or something short cutting me and just saying pay this rate when the true rate might be a lower if you know what i mean. Second or third opinions are always better because you can get a feel for whats in line and right. The IRS has no guide lines on this but they are busy passing new laws to govern it because it has never happened in this way before.

In short the point i am trying to make is this:: Say i went to a very well known and recommended tax professional and he says yes you will be taxed at this rate so you have him help you fix up the payment and send it in thinking you are all done and then later find out that the rate you paid was actually way higher than the real rate what are you gonna do. Maybe you just sent the IRS $100,000.00 more than needed, do you think they will return it. That amount of money is years worth of salary for most americans and it will buy a lot of things but not if they get it. Every day we get closer to what we gonna get in the revalue so start thinking about what you gonna do. By all means pay your taxes and satisfy the beast but don't pay more than your fair share. Set up a plan to talk to several people who are professionals of taxation do not just settle with one if you do you may get burned............Heavyduty053

[The Machine]

Cheers for the post heavyduty..... Interesting read +1.

for anyone else out there from the UK according to HM Revenue & Customs we do not pay tax's on foregin currency exchange's

also If you bank with Lloyds TSB and buy foregin currency from them they will buy it back from you with 0% spread at any time.

[pastorbigal]

People overpay on their taxes every year, and they get a thing called a refund. You would get your $100,000 back, but until then the Government gets to use it interest free.

[Roadrunner]

Excellent advice

[The Machine]

People overpay on their taxes every year, and they get a thing called a refund. You would get your $100,000 back, but until then the Government gets to use it interest free.

Ha Ha Ha if your government is anything like our government ..... you wont get it back ..... over paid tax is only refunded if the total is less than £3000 ($4,750) ..... other wise its just held by the tax office and used as tax credits towards your continuing tax payments.

[RAGARCIA62]

the only thought that comes to mind is that if there were people that made money on investing in the Kuwait dinar, how were those folks taxed? anyone know? i would think that it has to be along the same kind of investment/profit and tax issue. go rv.

[TexasFisherman]

My plan is to pay the IRS what I owe which I think will be 15%. I get that from the code talking about currency transfers. IF I owe more I'll gladly pay it as I believe we stand to make a few bucks off this....if it ever will RV. If it doesn't, then I owe the IRS nothing.

Should have plenty left to do what I want: help kids/grandkids, play a little, travel a little, spoil the little lady - my bride of 42 years, and ? Can't think of anything else right now but I am sure ready. AND TEXAS IS READY for the RV.

Plan the AFTER RV PARTY and join us say in Cowboy Stadium in Arlington. Sans Jerry Jones of course.

[euroline67]

I would think that intent might play a part in the way we are taxed. Did we buy dinar to use on a trip to Iraq, or did we buy dinar as an investment?

[HopefulTxn]

Taxation?

If a person made over $0.01 per dinar, which would be over a 1,000% increase over what they originally invested and had to pay say 50% in taxes and complained would be nothing but a whining little bi*ch... Doesn't matter which government you are paying taxes to at that point... If one cannot compare that 1000% increase far outweighs a 50% tax then they shouldn't get the reward of the return in the first place!!!

People are being far too greedy with the return on investment, or what they feel they are 'owed', based on the forum discussions...

[chara55]

TEXASFISHERMAN.....Don't know why anyone would neg you + 1 to get you back to even
God Bless
Goooooooooooooooo Rvvvvvvvvvvvvvvvvvvvvvvvvvvv

[speculatorsRIDE]

It's a capital gain.........period.

There is a print date on currency for a reason. Unless you are holding currency with a print date of 2012, there is no way for a bank to know how long ago you purchased it. This means that dinar dated 2011 or before will be taxed at 15% as a capital gain. Dinar dated in the current year will be taxed at the higher rate. That's it for the government. Then depending on which state you live in will determine your state tax liability. People need to stop trying to over analyze this.

[Nelg]

Here is just a suggestion for lowering your tax liability:

1. You will have time to explore your options after the RV. RVing in June will give you 6 months before you need to file.
2. Tell your tax attorney or accountant the amount you hold in USD. Have them calculate the amount of charitable contribution you need to make to eliminate having to pay a huge tax.
3. After getting the amount from the professionals, distribute what you need to distribute to churches, schools, children's homes, or other charitable groups. Make sure they are a 501c3 organization.
4. Your tax payment can be lowered to $0 dollars. The amount you were going to pay to the government is now distributed to those who will use it wisely and to programs you want to support.

For me, this is a better use of the money, I know how it will be used, and I approve of what the organizations are doing. In other words, I am in control and not the government.

[eLemonator]

Ha Ha Ha if your government is anything like our government ..... you wont get it back ..... over paid tax is only refunded if the total is less than £3000 ($4,750) ..... other wise its just held by the tax office and used as tax credits towards your continuing tax payments.

I got an 18,000 + return last year, and 13+ this year! I over pay all the time!



You said nothing but common sense, everyone reading it was smart enough to see the potential of this investment, you really think taxes are an issue!

people just keep in mind that as of now it is capital gains, make sure you specify, to any CPA, or attorney that you have the physical currency not a certificate of ownership, like with stock. and pay your state income tax if it is applicable to your state!

and remember they cannot change the tax laws after you cash in to make it retro active!

[powerpager]

More than you want !

[ChiTownHopeful]

[size="6"][/size]500%

Taxation?

If a person made over $0.01 per dinar, which would be over a 1,000% increase over what they originally invested and had to pay say 50% in taxes and complained would be nothing but a whining little bi*ch... Doesn't matter which government you are paying taxes to at that point... If one cannot compare that 1000% increase far outweighs a 50% tax then they shouldn't get the reward of the return in the first place!!!

People are being far too greedy with the return on investment, or what they feel they are 'owed', based on the forum discussions...

I would look at it a little different and say that you are saying you are ok with a 500% tax on your investment. I for one will pay my taxes but use every legal means to pay less than 500%.

[HopefulTxn]

500%
I would look at it a little different and say that you are saying you are ok with a 500% tax on your investment. I for one will pay my taxes but use every legal means to pay less than 500%.

Where do you come up with 500%???

Please explain your math on that because it seems a little screwy...

[Xtaxguy]

I got an 18,000 + return last year, and 13+ this year! I over pay all the time!



You said nothing but common sense, everyone reading it was smart enough to see the potential of this investment, you really think taxes are an issue!

people just keep in mind that as of now it is capital gains, make sure you specify, to any CPA, or attorney that you have the physical currency not a certificate of ownership, like with stock. and pay your state income tax if it is applicable to your state!

and remember they cannot change the tax laws after you cash in to make it retro active!

Sorry, but they can. There is an old Supreme Court case (don't remember the name anymore and am too lazy to dig it up, but I quoted it scores of times while I was in public practice) that basically says that Congress can do anything it wants re income taxation, including multiple prior year effects. It happens every year when the tax law is amended: different sections of the bills have different effective dates: some are as of Jan 1, some as of the date the bill section was introduced or reported out of committee, or some date arbitrarily (with input and $ from lobbyists) selected. Sometimes the effects of changes are dependent on elections you may have made in prior years. They could, for example, impose a 20% surtax, payable tomorrow, on every penny of tax you've ever paid to them in your lifetime. Most of the time they set Jan 1 for changes that tend to reduce taxes, and some later date - often the date the bill was introduced - for changes that tend to increase taxes. There are only two things that keep them from doing really onerous retroactive changes: hostile voters and lynch mobs. And don't start yelling about the "ex post facto" clause of the Constitution; that applies ONLY to crimes, not sacred privileges like paying taxes so Big O's kid can party down with friends in Mexico!

Edited by Xtaxguy, 30 March 2012 - 04:13 PM.

[ChiTownHopeful]

Where do you come up with 500%???

Please explain your math on that because it seems a little screwy...

1000% gain...50% tax = 500% tax paid using your example. That would be 500% of the amount you invested in the Dinar.

[HopefulTxn]

1000% gain...50% tax = 500% tax paid using your example. That would be 500% of the amount you invested in the Dinar.

Unless you are referring to it being a 500% tax on the amount invested, then someone needs to either retake their math classes or get a refund for the classes that they took...

[ChiTownHopeful]

Unless you are referring to it being a 500% tax on the amount invested, then someone needs to either retake their math classes or get a refund for the classes that they took...

Isn't that what i said?