jturner87

http://en.wikipedia.org/wiki/Iraqi_dinar Looks like old currency

The Treasury Regulations to section 988 (the section that controls the taxation of currency exchanges) deal with that issue. For those of us in the US, the dinar is considered "nonfunctional" currency (our dollar is our "functional" currency). The reg states, in part: (iii) Coordination with section 988©(1)©(ii). No exchange gain or loss is recognized with respect to the following transactions-- (A) An exchange of units of nonfunctional currency for different units of the same nonfunctional currency; Thus, the exchange of larger denominations of IQD for smalller denominations of IQD would not be a taxable event. The bigger question is whether we can enjoy capital gain treatment under 988 at all (regardless of how long the IQD were held). Something I am looking into now.

I think I am done now!

post number 8

post number 7

Post number 6 for me

getting close I think

good idea thanks

thanks to you

The Butterfly Effect = Ashton Kushner = Punk'd = Dinar Holders so far

When it R/Vs, you would be well served to discuss these issues with a CPA or tax attorney. There is no statute of limitations for fraudulent returns--you will never sleep soundly again unless you do the right thing. I have had clients audited 20 years after filing a return--it happens.

Been holding dinars for a little while and this has been a great site for information. I am a tax attorney during the day, but love checking out the r/v intel at night. Fingers crossed for us all. Jay