ExecConsult

Gift Letter Form

27 posts in this topic

I have had several requests for what would qualify to transfer ownership of Dinar to someone to whom you wished to gift. I just did it quickly so proofread it. It could be more thorough, but should suffice.

Replace everything in brackets"[ ]" with the appropriate word, name, etc.... It should be pretty self-explanatory.

I am happy to answer questions but won't be on much until Monday.

Happy Thanksgiving and Best of Blessings to you all,

Mark

P.S. (Please feel free to donate to the Keep Mark Happy fund.)
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[quote name='ExecConsult' date='25 November 2010 - 01:19 PM' timestamp='1290719995' post='281411']
I have had several requests for what would qualify to transfer ownership of Dinar to someone to whom you wished to gift. I just did it quickly so proofread it. It could be more thorough, but should suffice.

Replace everything in brackets"[ ]" with the appropriate word, name, etc.... It should be pretty self-explanatory.

I am happy to answer questions but won't be on much until Monday.

Happy Thanksgiving and Best of Blessings to you all,

Mark

P.S. (Please feel free to donate to the Keep Mark Happy fund.)
[/quote]

Thank you, Mark
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[quote name='ExecConsult' date='26 November 2010 - 12:19 AM' timestamp='1290719995' post='281411']

P.S. (Please feel free to donate to the Keep Mark Happy fund.)
[/quote]

Thanks Mark. Appreciate the efforts.

BTW, I've already send my cards and letters to Jesus friends. That's J-E-S-U-S, care of Del Rio, Tx :lol:
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One more thought on gifting. If you want to make sure, absolutely sure, that you are showing the IRS that this gift was made on a particular date with a particular value, etc..., the BEST way (though maybe overkill in my own opinion) is to file a gift tax return showing the gift and it's value. It is fairly easy to fill out form 709 and file it with the IRS. Just a thought if you wish to practice an abundance of caution.

Best of Blessings,
Mark
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Mark,

Thanks for the form.

If my father is gifting the notes to me, and we live in the same town, is there a good reason to mail them? With the chances of them being lost in the mail, etc... why chance it?

I"m assuming that it is to help show that they did get transfered to me. Any other way to do this? Or should we just mail them, insured, and hope they arrive 2.5 miles to my house from his. :)

Thanks,

Kent
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[quote name='USMC_2674' date='05 January 2011 - 01:07 PM' timestamp='1294254462' post='329803']
Mark,

Thanks for the form.

If my father is gifting the notes to me, and we live in the same town, is there a good reason to mail them? With the chances of them being lost in the mail, etc... why chance it?

I"m assuming that it is to help show that they did get transfered to me. Any other way to do this? Or should we just mail them, insured, and hope they arrive 2.5 miles to my house from his. :)

Thanks,

Kent
[/quote]
Yes - the reason is to have a return receipt showing that it was actually transferred and a corresponding date. In your case, just sign a receipt for him - could even be incorporated into the initial gift letter.

Best of Blessings,
Mark
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Hi Mark
This is really good info. But I have one question. Would you use the same form if gifting Dinar to a S Corp?
Thanks
bfurn
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[quote name='bfurn' date='13 January 2011 - 01:53 PM' timestamp='1294948435' post='343408']
Hi Mark
This is really good info. But I have one question. Would you use the same form if gifting Dinar to a S Corp?
Thanks
bfurn
[/quote]
You do not gift to a corporation. You contribute assets (or labor) in exchange for equity in the corporation. If you contribute the dinar to your corporation, the accounting records as well as the internal records of the corporation should have documentation showing that. It will not be important to be able to show timing of the contribution. Your corporation will take the dinar at your basis and with whatever character the assets had in your possession.

Now I must caution you that in so doing, you may cause yourself additional tax. If you cash the dinar personally, you will have income taxes, but if your company cashes the dinar your company will have income taxes to pay PLUS employer/employee taxes as well. Please make sure that you can offset your dinar income within the S Corp with appropriate expenses before contributing the dinar to the corp. To be sure of that you must project your expenses for 2011 AND you must also know what the dinar is worth. That means if you are going to contribute any at all it should be done post RV when you know the value.

Best of Blessings,
Mark
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[size=2]My wife is a U.S. Citizen and I am a U.S. Permanent Resident. We bought our Dinar under my wife's name but with a joint bank account. [size=2]We want to gift some Dinar to our kids and notarize the Affidavit of Gift doc that was posted. [/size]
[size=2]Since only a US Citizen can legally purchase Dinar, i[/size][size=2]s it best to leave my name off this document?[/size][/size]
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[quote name='dvision' date='15 January 2011 - 06:04 PM' timestamp='1295136264' post='347481']
[size=2]My wife is a U.S. Citizen and I am a U.S. Permanent Resident. We bought our Dinar under my wife's name but with a joint bank account. [size=2]We want to gift some Dinar to our kids and notarize the Affidavit of Gift doc that was posted. [/size]
[size=2]Since only a US Citizen can legally purchase Dinar, i[/size][size=2]s it best to leave my name off this document?[/size][/size]
[/quote]
The only reason to have your name on it would be if you were gifting more than $13,000 worth of Dinar and you needed to join in the gift with your wife. However, if you are doing the gift pre-RV, the value should be lower and there will be no need for your name on the gift. I would leave it off.

Best of Blessings,
Mark
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Hi Mark,

Thanks for all of your help!

I posted last week a question for you and I am not sure if you were able to answer it. If you already responded, I apologize, because I have not seen it.

My questions is if we give physical Dinar to a non profit 501 (C) 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!
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[quote name='Moneypenny' date='25 January 2011 - 02:40 PM' timestamp='1295988053' post='359967']
Greetings, Mark!

I wonder if you would help to clarify the CRT process. Specifically, what do I need to do now in order to prepare, and to mitigate my tax liability?

A. I set up a CRT now, and Gift my Dinar to the trust pre-RV.
B. I wait until after the RV, then set up a CRT.

Which scenario would lessen my taxes? Is it a wash either way? Or is there something else I'm not considering??

My warmest thanks again for all you do!
- Wendy
[/quote]
There is nothing to be gained by gifting to charity pre-RV. Making the charitable contribution post-RV makes sense for the following reasons:

1) You will know what the value is - know how much you are giving. If the investment comes back at $1.00 you "might" give different amounts of dinar than if it comes back at $3.87. Anyway, you would be making an informed choice.

2) You have a greater chance of getting a larger charitable deduction for your gift if you give an asset worth more money. Typically if you give an appreciated asset that you have owned more than 12 months you can get a bigger charitable deduction. We are still not sure if the IQD can work that way, but I think there is a good argument that it can. (For more info. on this you can read here:

http://dinarvets.com/forums/index.php?/topic/48711-deduction-for-charitable-donations/ )

Hope that helps.

Best of Blessings,
Mark
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[quote name='Iraqi Queen' date='25 January 2011 - 03:26 PM' timestamp='1295990776' post='360020']

My questions is if we give physical Dinar to a non profit 501 (C) 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!
[/quote]
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,
Mark
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I like practicing :rolleyes: Formatting and Forming documents in Acrobat Reader Pro :o, so I formed the document above. Please review before using :unsure:.
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Sorry, I made a little typo in the first version on county I put country. now corrected. :( Sorry again. Here is the updated version. :D
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Question about Gifting...is the only way to gift the dinars before the RV?

Can you gift any time?

Can you exchange the RVs to currency and then gift the value of the currency or does that lead to double taxation...one, a tax when the exchange happens, and two, a second tax when you give money to a recepient, the recepient also has to pay tax?

Better to gift before or after the exchange to currency or it doesn't matter?
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[quote name='wethepeoplefree' date='07 August 2011 - 01:02 PM' timestamp='1312740131' post='611470']
Question about Gifting...is the only way to gift the dinars before the RV?

Can you gift any time?

Can you exchange the RVs to currency and then gift the value of the currency or does that lead to double taxation...one, a tax when the exchange happens, and two, a second tax when you give money to a recepient, the recepient also has to pay tax?

Better to gift before or after the exchange to currency or it doesn't matter?
[/quote]
You "can" gift post RV. However, you will be gifting something of a much higher value and will probably be subject to gift tax consequences.

With the RV and gifting we are really worried about 2 taxes; 1) The income tax and 2) the gift tax.

This is the way it works as simply as I can tell you.

Income tax - whoever has an income event (something where income is realized - i.e. exchanging dinar for USD) pays income on the gains realized. If you give someone dinar, for "income tax" purposes they take the dinar at your basis (basically what you paid for it). That way, whether you do the exchange or you give it to someone and they do the exchange, pretty much the same income will be generated for income tax purposes. The only difference is if you give through a testamentary (at death) instrument like a will or a trust. In that case the value is marked to market before the gift is given. The person receiving, gets it at current values. However, the only reason the IRS is willing to do that is because when all the assets are marked to market before being given away, they get paid more in "estate taxes" (yet a third tax).

Gift tax - For gift tax, it does not work the same. Whatever the market value of the gift is is considered the amount you are giving. So, post RV if you give dinar the income tax valuation will be very low but the gift tax valuation could be quite high. The person making the gift is the one who has the gift tax consequences. That is why people are using the gift forms at all. They are trying to create evidence showing that there gifts were made when the dinar had a very low value. This way they escape gift taxes all together.

Hope that is helpful.

Best of Blessings,
Mark
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Hi Mark. I purchased my first bit of dinar on ebay, and subsequently purchased more directly from the seller via credit card. I contacted the seller and asked how i could get receipts of my purchase and his reply was unless i wanted to pay someone $600/hr. to dig through his transactions, he couldn't help. The latter purchases are of no worries b/c of credit card buys, but is there any way to deal with the first few? I'm sure i paid money order for the ebay transactions, but i'm not 100%, and this was roughly '07-'08. Any input would be greatly appreciated. Thanks in advance. Chao.
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From what I gathered from other posting including her and other boards.. you just need a bill of sail, like your eBay receipt or one stating you purchased it from them and signed by them.
Per the call on PTR with DinarBanker.com rep for the TAX-man.

Please note: I am not a qualified or certified to give advice to anyone regarding anything legal. I am just an average joe. GOD Bless. :rolleyes:
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