taxes

[imdamanz]

I had wondered if I should just give my church a $25,000 dinar note and let then cash it in since, since they are a 501-c3 and would not pay taxes on it. I plan on paying my taxes just didn't want to pay more than I needed. Please advise.

The applicable taxes will be paid by the entity that cashes in the note. If it is determined to be an urelated business activity, then income tax is due. I believe that there are ways around that though. Members of churchs commonly give belongings or property in leiu of cash. They are permitted to receive the property even of it is unrelated to the ministry. You would be giving them a foreign currency that they could do what ever they wanted with. They could go to the bank and cash in right away, they could hold on to it and cash in later, or they could hold on to it forever gathering dust in the bottom of their safe.

Regardless, as an individual after you cash in the dinar, you are permitted to deduct from your income the donation to this or any other not-for-profit that you choose and because it is cash, they will have profitabilty issues, but not a bad problem for a church to have. An example is my church was left a $1.3 million endowment from a member. We wished to honor the person donating, but had no idea what to do with the money. It turns out that we came up with a business plan to put an addition onto the church and build a second building for community outreach. This plan easily exceeded the amount given, so we were able to put the funds into a capital reserve account and not violate the not-for-profit guidelines.

[Markinsa]

Actually if we were perfect we wouldn't need Jesus

Amen to that!

[imdamanz]

imdamanz,thank you for your explanation on gains.??

EX: If you made 1 mil in profit from an RV in 2011, would your taxes on that profit be computed on current income tax tables for the year 2011? if you were in the 5% tax bracket for 2010,would the income tax be based on 5% from 2010 or a higher percent for the income made off the dinar in the year 2011?

You would file and depending on your file syatus would use the IRS table for the income. It is a progressive scale that increases as the income does. What was paid last year has no impact on the current year - so tax liabilty in a year of big income does not require you to pay the same rate next year if your income has decreased. I have attached the 2010 tables. You can work with it to see whay you base tax liability is. Also refer to the rules for AMT (Alternative Minimum Tax) where you may qualify for an additional tax (10% increase in the top rate of 35% = 3.5%) and the related limitations of certain credits, deductions, and exceptions.

i1040tt.pdf

[MSgt of Marines]

Watch yourself..."God will not be mocked"...just sayin'

I agree God will not be mocked!

What you want to set up is a "508 Trust"

Look into the 508 instead of a 501c, as it will be the best option, to help you keep the most of your newly gained wealth and still be perfectly legal in the eyes of the IRS! For that info I wouldn't mind if you that becomes a multi millionaire thanks me by surprising me with a 2SS 2011 yellow Bumble Bee Camaro for my birthday which is May 4th .

Edited March 14, 2011 by MSgt of Marines

[BanG]

Actually if we were perfect we wouldn't need Jesus

Speak for yourself if you feel you lead a sinless life, Christ gave us all a gift with a choice and either way you can take it or leave it. No I'm not the model Christian in any sense of the word, I do know that without Christ I'm dead. Peace. OOOOPS Open mouth insert FOOT AGAIN! Dammit. Thanks Markinsa for the heads up or FYI whatever.

[Markinsa]

Speak for yourself if you feel you lead a sinless life, Christ gave us all a gift with a choice and either way you can take it or leave it. No I'm not the model Christian in any sense of the word, I do know that without Christ I'm dead. Peace.

Bang, I think she was speaking in general terms about everyone. Love Ya!

[Islandgirl7]

Speak for yourself if you feel you lead a sinless life, Christ gave us all a gift with a choice and either way you can take it or leave it. No I'm not the model Christian in any sense of the word, I do know that without Christ I'm dead. Peace.

I think you misunderstood..I am a miserable sinner..I NEED Christ EVERY minute of EVERY DAY...I just don't need church...

Sitting in church doesn't make you a Christian..just like sitting in a garage doesn't make you a car

[ckh]

I agree God will not be mocked!

What you want to set up is a "508 Trust"

Look into the 508 instead of a 501c, as it will be the best option, to help you keep the most of your newly gained wealth and still be perfectly legal in the eyes of the IRS! For that info I wouldn't mind if you that becomes a multi millionaire thanks me by surprising me with a 2SS 2011 yellow Bumble Bee Camaro for my birthday which is May 4th .

This one Master Sarget??

We Need more info, please send me a PM

Thank you for your service!

[Danielf22]

Just a quick thought. When (and if ) this thing RV's gift to charities can be made afterwards and up to 50% of your income can be deducted. In other words if you get $1,000,000 and gift $500,000 then you will be effectively taxed on only $500,000. My plan post RV includes large gifts (if I have large income) to control tax hickey that I'll take and provide maximum benefit to those I want to help. If you are keeping at least half, the gifts do not have to be made pre-RV but they need to be made in the same tax year. I'll be using a communiy foundation in my area that can set up a donor advised fund for me so I can take my time deciding where gifts go while making sure the deductible contribution is in the same tax year as the gain.

This is of course very simplistic and you should consult with your own tax advisor on these issues. Just my 23.4 Dinar

From what I've found I think it will be treated as income as well. With that being said don't forget about the alternative minimum tax. Which basically means you won't be able to exempt so much as to not pay the AMT which I think is like 28-29% or so. So on 1 million profit u will still pay like minimum 280,000 taxes regardless how much you exempt. Obviously it's more complicated than that but I believe that's the gist.

[imdamanz]

From what I've found I think it will be treated as income as well. With that being said don't forget about the alternative minimum tax. Which basically means you won't be able to exempt so much as to not pay the AMT which I think is like 28-29% or so. So on 1 million profit u will still pay like minimum 280,000 taxes regardless how much you exempt. Obviously it's more complicated than that but I believe that's the gist.

AMT is taxed at the highest rate plus 10%, that is 35% plus 3.5% which equals 38.5%. There are qualifiers that kick it in and for most of us it will. The key to AMT is that they exclude many credits, deductions, and excemptions that we would normally be qualified for. They begin to phase out many that would be "regular" type deductions like child tax credit or non-cash charitable deductions and more - thus making the effective tax rate higher. It is not the worst thing in in the world, but certainly an inconveinence. There are ways to limit the taxable income, but they all limit the access to the money until future years. This is why I continuously suggest that you sit down with an accountant, financial planner, or tax attorney to make sure that noone has to pay more than they are legally responsible for. This is what I do, and I have a passion for it. I will never lead a client astray, even if it means that they have to accept a hard truth. This is the worst thing for the current year and huge in future years to have taxes that taxes that are not clean. If the IRS even thinks that there is any funny business, you will make the audit list for many years to come. That is a lot of time and expense to defend yourself. I have never had a tax client audited and that is because I will never do a return that cheats. I will take advantage of every opportunity that the IRC permits, but never will I allow a return that is not defendable.

[imdamanz]

I agree God will not be mocked!

What you want to set up is a "508 Trust"

Look into the 508 instead of a 501c, as it will be the best option, to help you keep the most of your newly gained wealth and still be perfectly legal in the eyes of the IRS! For that info I wouldn't mind if you that becomes a multi millionaire thanks me by surprising me with a 2SS 2011 yellow Bumble Bee Camaro for my birthday which is May 4th .

My youngest son thinks that the Camaro is the greatest car in the world, so you are in good company...it just doesn't do it for me. I hope that you are able to buy a fleet of them for the service that you have performed for our country. I am a proud veteran, but my sacrifice was time and not the riggers of battle. I salute you and all that have faced the possible loss of life. I was willing to do what you did, but had no opportunity - and I am selfishly grateful that I never had to face what you did. It amazes me that so many are willing to use force to support peace. Only my Father in heavan can be more proud of what a few are willing to do. You will be blessed with all of the riches there, even if you never get to experience them on earth. I wish you the best in all that is before you, and know that God's speed will guide you along the way.

[Selkirk77]

There will not be any capital gains for any of us...this is treated as ordinary income.

The church still has to spend the money or use it to fill their reserve capacity. I am a degreed accountant who is also the chairman of my church's finance committee. There is such a thing as having too much money for a church or other not for profit. Discuss it with the church leadership. See if they have any plans for a capital project that needs to be funded or financed. See if there are any missions that they have been wanting to support, or bring your own mission idea to them. I think that it is awesome that your heart is to support your church(es).

My recommendation is not to gift your wealth to an organized church, especially one under the umbrella of a 501c. It would be irresponsible. Give to Jesus' works, outside the sphere of the organized church, much better use of what God has blessed you with.

Selkirk..

[cw2]

Did anyone see where in 2011 highest tax bracket will be 39.6%. It is because Bush tax creidts will end. My link

Edited March 15, 2011 by cw2

[imdamanz]

Did anyone see where in 2011 highest tax bracket will be 39.6%. It is because Bush tax creidts will end. My link

The extension of the Bush tax cut is effective through the 2012 tax year. But yes, the highest rate pre-tax cut was 36%, plus 3.6% (additional tax for AMT) equaling 39.6%. This year and next, if nothing else changes, will be 35%, plus 3.5% (additional tax for AMT) equaling 38.5%.

The truely amazing arrogance of our government was during the Carter administration where the highest rate was 45%, plus a whole 25% for AMT making it possible to pay 70% of net income for taxes, and that would not include Social Security (7.65%) and any state or local income tax. It was at one time possible to pay over 80% of earnings in income tax. Thank God for President Reagan restoring sanity back into the tax code. We often complain about high taxes, but we know from the past that an over reaching admistration can cripple an economy with their tax policy. Bush 41 lost to Clinton primarily for raising Reagans top rate of 33% to the before mentioned 36% after the famous "Read my lips, no new taxes" pledge during the 1988 campaign. Thank you for reading my little rant and history lesson on ferderal taxation.

[MSgt of Marines]

Not that is matters unless it RV's. Income tax is the income you receive from your employer. This is not income from your job. This is a gain or loss on an investment. Common sense says it is capital gains.

I've heard lawyers on both sides of this argue both ways.

Use a 508 Trust instead and you wil be fully legal!

My youngest son thinks that the Camaro is the greatest car in the world, so you are in good company...it just doesn't do it for me. I hope that you are able to buy a fleet of them for the service that you have performed for our country. I am a proud veteran, but my sacrifice was time and not the riggers of battle. I salute you and all that have faced the possible loss of life. I was willing to do what you did, but had no opportunity - and I am selfishly grateful that I never had to face what you did. It amazes me that so many are willing to use force to support peace. Only my Father in heavan can be more proud of what a few are willing to do. You will be blessed with all of the riches there, even if you never get to experience them on earth. I wish you the best in all that is before you, and know that God's speed will guide you along the way.

[MSgt of Marines]

This one Master Sarget??

We Need more info, please send me a PM

Thank you for your service!

Yes That is it! I can't wait until I get one and see my Son's face when I come pick him up from School in t the first time :-)

[Whiskey bob]

I am surprised that so few do the research yourself, it's not that hard. For instance, you are aware of Executive Order 13303, that Bush signed, giving you the right to own Dinars. It also states that there will be no taxes or fee attached to it. This has been fully discussed by Earthrights International. For your own peace of mind go to

 

URL:http://www.earthrights.org/publication/earthrights-international-examines-eo-13303

 

Its a long read, about 12 pages, but it will remove any question about taxes. If O tries to pass a law to put a tax on it, Congress has to approve it. and it will not stand up in court.

GoGo RV

[ScaryMary]

Whiskey bob, thanks for the info

[TexasRiverman]

Remember that when you get RICH.. you have to PAY your FAIR SHARE..... which to this government that means ALL OF IT>>>

[RVWITHME]

A 501c(3) is a statutory exception for not-for-profits. So what you are saying is that you are going to dump all of your gains from the currency exchange into a church. And, if this goes well, you are not going to show a profit, how? Once you show a profit, you violate the tenants of the IRC that govern, and you lose your exception. Or you manage to spend everything setting up this church, and then have nothing left? You are permitted to have reserves, but they are regulated also. Then if they decide that you did it to evade taxes, you pay penalty, interest, and fines, as well as face criminal prosecution. All of this is being done in an effort to not pay your taxes. I wish you well in your attempt, but an intern at the IRS could figure out what is going on and prepare a case against you, let alone a seasoned examiner who has seen it all a 1000 times. The bottom line is that you are going to pay taxes on the gain at ordinary income rates, and if you use the net, there are ways to legally shelter future gains, or at least defer then to future distribution. I would strongly suggest that you seek expert advise from an attorney, accountant, or financial planner (You will need all of these afterwards, anyhow) before you make any decisions that could have serious consequences.

Starting a church, or other not-for-profit such as a foundation, is very noble. You can help a lot of people. I hope that the reason that you would even consider doing this are pure for the Kingdom of the Father, and not for some kind of selfish avoidance of income taxes.

 

 

Oh Pleeeze... Climb down off of the soapbox and look around at the "new" world we have been forced into. Old conditioning is a hard habit to break for some.

 

Taxation is a voluntary system whereby YOU get to decide how you want to play the game IF you so choose. Take a look at what the real "Experts" have to say.

 

http://www.breitbart.com/Big-Government/2013/05/17/IRS-Chief-Taxes-Are-Voluntary

 

 

As to charitable organizations, sure there are a lot of good charities out there, but the simple fact is that many of them exploit the very foundations of the foundational

process itself to eek out massive profits for themselves and their cronies. Even the Clintons have recently come under fire for serious abuse of the charitable system (gasp).

Again, do a little research and see for yourself so that you may come to your OWN conclusions:

 

http://www.tampabay.com/americas-worst-charities/

 

http://www.cnn.com/2013/06/13/us/worst-charities

 

Sheeple IS as Sheeple Does.

[SocalDinar]

I plan on taking a picture signing that check! Kodak moment for sure!

Use the smaller denoms at the Casinos

[sandfly]

ok

[Shang Man]

Then he needs to do a sweep of his churches because now a days their flooded with hypocrisy.

 

[desimo]

Personally I do not think anyone really knows the actual factual regarding taxes on this thing because the IRS is all over the board regarding that this is.  Some say it is capital gain, others say it is income tax, others say it is a currency exchange.  I do not think we will really know what taxes will be until it a actually happens.

[easy]

Pay what you owe life is too short to worry, on a note church is not the only place hypocrites hang out.