My questions is if we give physical Dinar to a non profit 501 © 3 organization after the Dinar RV's, will they have to pay taxes after they cash the Dinars? I am assuming not, but no one has ever had that happen, so no one knows. Also, will I need to have a gift letter notarized for myself and the organization?
Thanks for all of your help!
When you have an asset that appreciates, no gain is recognized until you convert that asset to something else. For instance consider the stock market. If we had to recognize gain and loss every day a stock went up or down, the paperwork would wipe out our worlds trees in minutes. You only recognize gain on the Dinar when you exchange it for US $. (I know this was not part of your question, but I thought I should throw it in there for other people. I see people confused about that far too often.)
If you give your Dinar to an approved charitable organization, you would take a deduction for your gift to the charity. The charity is a tax exempt entity. Therefore, when they "sell" this asset that you have given them, they will pay no taxes. It works the same as if you had donated a car or a time-share to the charity.
As far as documentation goes. You will not need a gift letter to establish the date of your gift. The charity is required to give you a receipt. That will suffice for your records. The only reason to give a gift letter would be if the charity needed to show some sort of chain of title when cashing in. My first thought is that they will not need it, but you never know.
Best of Blessings,