What Adam talks about in the VIP section is not so much a way to reinvest as a way to defer US taxes by deferring income recognition. This can be done the way the VIP section sets it up. It may also be able to be done through a "deferred sales trust." The absolute BEST way to hold your dinar in my humble opinion is in a Roth IRA so the gains are tax FREE not just tax DEFERRED.
Anyway, whether it is selling stock or exchanging IQD, at the moment of income recognition you have created a taxable event. Neither type of transaction enjoys any special rules that would allow you to avert taxes by reinvesting. The only things I can think of that allow that under our current laws are qualified retirement accounts, IRAs, and sale of your personal residence (though you don't have to reinvest it in a new home anymore- that used to be the rule).
Hope that is helpful.
Best of Blessings,
An LLC won't do you a lot of good for taxes (unless you have a lot of capital investment you can expense), but an LLC can give great asset protection if it is set up correctly and in the correct jurisdiction. I would not use AZ to set up an LLC to hold dinar or investments. I'd use either Wyoming or Nevada personally.
What the VIP section suggests can be very effective if done properly. However, a domestic LLC, FLP, LLP, FLLLC, if properly drafted will provide great asset protection as well. (Sorry to disagree Adam.)
Best of Blessings,
P.S. See my profile for abbreviated professional disclaimer.
Oh no, we don't disagree. A properly formed entity can help protect assets.
Regarding Dinar, there is always a chance the USG could lock up all Dinar related transactions with a simple mention of anything Homeland Security related. After all, Iraq is in the Middle East. For this reason I choose to have my assets protected by a corporation that does not reside under the jurisdiction of the USG.
Regarding Taxes, a domestic entity won't help much for exactly the reason you just mentioned - you can't trade Dinar for houses or cars and avoid paying taxes! At the end of the year, your gains (through the corp) are added up and you pay taxes on the full amount. Once again, I prefer to let a foreign corp receive the gains immediately... I will reap the benefits on my own terms, in my own time, and I will pay much less taxes than the average bear.
Another point we sort of disagree on is the IRA - that's a great tool if you don't want to touch your money until you reach a certain age. It's not appropriate to assume everyone on this board is an ancient codger like yourself!
kidding of course
An IRA is a great vehicle for many people, but it's not a "one size fits all" solution.
As always, thank you for your insight and contributions!