IRS Puiblication 525 on "Foreign Currency Transactions"

[Den56]

Hey Gang . . . . .. I started this thread to try and share this info without constantly having to post it inside of other threads . . . .

As I have mentioned in this forum many times, go to irs.gov and on page 33 of the pdf format of IRS Publication 525, it very clearly states that concerning "Foreign Currency Transactions" . . . . "If you have a gain on a personal currency transaction because of changes in the 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."

Of course, with today's politicians, this is subject to change, so stay tuned.

Hope this helps.

Dennis

[Den56]

I also posted this in the "Tax Discussion" section, where it may be easier to pull it up again, if needed. I put it in this section, as well, for maximum exposure to help everyone out.

Dennis

[markb57]

The Devil will have his due.....

[RMLP]

This would be excellent to be taxed at the capitol gains rate.....

[Dryden01]

You are confirming what many have found. The issue then becomes the timing of realizing the capital gain in either a long term or short term gain period. This becomes very significant in relation to your general income (earned) from employment. What is often excluded in examining the "Bush capital gains tax cuts that favor the rich" is the fact those in the bottom two general tax categories of 10% and 15% pay NO long term capital gains and only 15% on short term gains. According to the tables for 2011 however, after the Bush tax cuts have expired at the end of 2010, the poor and lower middle class will revert to the higher levels of the Obama capital gains tax increases on the poor and lower middle class. Hopefully, the RV/RI will occur within 2010 and we can mostly realize substantial gains without having to give them away to the government. The benefit to the people would be spending increases and employment follows along with that. Be patriotic and buy stuff made in America!

[TH33]

Something to keep in consideration

[Den56]

You are confirming what many have found. The issue then becomes the timing of realizing the capital gain in either a long term or short term gain period. This becomes very significant in relation to your general income (earned) from employment. What is often excluded in examining the "Bush capital gains tax cuts that favor the rich" is the fact those in the bottom two general tax categories of 10% and 15% pay NO long term capital gains and only 15% on short term gains. According to the tables for 2011 however, after the Bush tax cuts have expired at the end of 2010, the poor and lower middle class will revert to the higher levels of the Obama capital gains tax increases on the poor and lower middle class. Hopefully, the RV/RI will occur within 2010 and we can mostly realize substantial gains without having to give them away to the government. The benefit to the people would be spending increases and employment follows along with that. Be patriotic and buy stuff made in America!

Great Points . . . . Dryden01 ! I am familiar with those points from posts in this forum by others, possibly even yours. Thanks for your input in this thread.

Dennis

[lechesuerte]

Thanks guys for the info. Sometimes it seems to be rather difficult to understand.

Lechesuerte

[mariodi]

Thanks for the information...I have printed and saved it in my Dinar folder.

[HINK]

You only pay capitol gain on your IQD when you cash in for USD's.

Example: as your house increases in value...you only pay cap gain upon it's sale.

[Den56]

Hink . . . . .yes, that is the usual rule. Let's just hope that the "wizards in Washington" who are responsible for driving this country right over a "financial cliff" with our massive growing debt, don't come up with some special rule just for us, i.e. about six months ago, I was mailed info from some CPA type trying to dispute this very point . . . . that a "currency revaluation" is a special occurrence where we are responsible for the taxes on the gain, at the time of the RV, whether we cash it in, or not. This makes no sense to me and I have not been able to find any evidence of this, but I'm not a "Washington Wizard", although I did play two years of basketball in High School. LOL.

Dennis

P.S. Hink, BTW . . . . we're practically neighbors. I'm next door in Southern NH. Howdy Dinar neighbor.

[ronbo62]

Hink . . . . .yes, that is the usual rule. Let's just hope that the "wizards in Washington" who are responsible for driving this country right over a "financial cliff" with our massive growing debt, don't come up with some special rule just for us, i.e. about six months ago, I was mailed info from some CPA type trying to dispute this very point . . . . that a "currency revaluation" is a special occurrence where we are responsible for the taxes on the gain, at the time of the RV, whether we cash it in, or not. This makes no sense to me and I have not been able to find any evidence of this, but I'm not a "Washington Wizard", although I did play two years of basketball in High School. LOL.

Dennis

P.S. Hink, BTW . . . . we're practically neighbors. I'm next door in Southern NH. Howdy Dinar neighbor.

Hi Den56. I'm Ron and I'm in Manchester N.H. Good to see there a re a few smart people in this State. I have told people about this and they look at me like I'm a ***********, hahaha. Oh well, I can't wait until it RV's and then see the look on their faces. later.

[Den56]

Hi Den56. I'm Ron and I'm in Manchester N.H. Good to see there a re a few smart people in this State. I have told people about this and they look at me like I'm a ***********, hahaha. Oh well, I can't wait until it RV's and then see the look on their faces. later.

Wow . . . . Ron, I'm in Derry, so we really are neighbors. I have had about eight friends in NH join me. I am sending them to TD Bank, as that is the cheapest way to purchase at the moment. I'll look for you in chat sometime and we can IM so we trade contact info and get together one of these days.

All the best . . . . neighbor.

Dennis

[quadraph0nic]

So hink, you could just leave the money in the warka account after it RVs and only when you transfer or withdraw will there be a taxable event?

If thats the case, I'll just leave it in there until we get republicans back in to lessen that cap gains tax....

You only pay capitol gain on your IQD when you cash in for USD's.

Example: as your house increases in value...you only pay cap gain upon it's sale.

[SuperFlyJr]

So hink, you could just leave the money in the warka account after it RVs and only when you transfer or withdraw will there be a taxable event?

If thats the case, I'll just leave it in there until we get republicans back in to lessen that cap gains tax....

That's assuming the rate stays steady that long. I'm expecting a big spike in the rate from speculators once it RV's and is released from it's peg to the USD. That'll be a good time to jump out! Waiting on Republicans to get in office would be nice, but the rate may also drop a bit before steadily climbing. Our best hope is for an RV ASAP before Obama can screw us with anymore taxes.