TC987

Great News! Go RV

Looks like there were no problems after all . . . CNN: Defense ministry: South Korea ends live-fire drill South Korea's live-fire military exercise has ended, the country's defense ministry said Monday. The drill started about two hours earlier Monday afternoon, and fighter jets took to the sky in preparation for possible retaliation by North Korea. North Korea had said the drill could ignite a war and that it would respond militarily to the exercise, but the country did not act immediately on Monday. Instead, the North agreed to a series of actions after former U.S. ambassador to the United Nations Bill Richardson urged the country not to respond aggressively. http://www.cnn.com/2010/WORLD/asiapcf/12/20/koreas.tensions/index.html

I don't think there is anything odd about today's numbers. Below is a copy of the numbers from December 14th. Japanese yen JPY 13.909 13.902

Great News! Thanks for the post!

You should definitely seek the advice of a tax professional. As I understand the tax code, the second you exchange your foreign currency for USD, it has become a taxable event. Whether you re-invest the money or not, makes no difference on the tax consequences of this event. However, if you purchased the dinar through your IRA (which is mentioned on DinarTrades website) any gains through exchange would be considered part of your IRA and then would only be taxed upon distribution of the IRA. If you cash out the dinar and invest in a CD, or Real Estate you will have to pay taxes on the gain from the exchange. Thanks to Frank for the Internal Revenue Code Section reference. Also, you can create companies to shelter income legally as is mentioned here. However, just because your dinars are owned in the company doesn't mean it will not be taxable (regardless of which state you incorporate in). Also, you would have to establish that the company actually owns the dinar, but that is an easy fix, you can gift them to the company. Once that is done, and you exchange them for USD the company has then created a taxable event, and the company is liable for the taxes. I agree that this money would be pre-taxed within the company, and you have until the end of your tax period to reduce that liability, however, I would not want to create a company, and then spend all of my earnings/capital gains simply to reduce my taxes. Just my thoughts . . . I love Kyosakis books and would recommend everyone to read them, but never sell yourself short. Even Kyosaki won't make an investment transaction without his "Investment Team's Advice."

http://news.yahoo.com/s/ap/20101220/ap_on_re_mi_ea/ml_iraq

Great Post - Thanks

Q#1 - True - As far as the RV goes, you won't have to report anything for taxes until you exchange the foreign currency for U.S. Dollars (because technically you haven't earned anything until it is translated back to USD). Q#2 - I am no foreign income expert so I better stay away from trying to answer this one. Q#3 - If you have cashed in all of your dinar after the RV occurs then you will have a capital gain on the transaction. As far as the earning on the CD go, I would think they would be considered interest income similar to an American CD, and be included in ordinary income. Again I'm no foreign income expert so you may want to seek the advice of a professional who deals with foreign income and taxes. Great questions and I would think a clever "tax management" strategy.

This information was posted earlier this morning by another member, but I can't put my finger on the post or the forum. The discussion was pretty good. I'm not sure how to find it at this point. I'm just learning myself, so I can't help with your questions, but they are good questions. I found it. Hopefully it answers your questions:

Forgive the ignorance in this area, but how will you be keeping the transaction off shore for the big cash in? This is not an area that I have any experience in and would like to know more. I know the US Gov't had started cracking down on off shore accounts and that has caused me to stear away from it in the past. Thanks for the info.

I agree with this post. I would add, if the money is transferred from you to your daughters accounts (after you have exchanged it) then the bank will report the exchange under your social security number and the IRS will tax you on the full amount of the exchange. However, if you "gift" the dinar to your daughters and then open the accounts for them to exchange the dinar, then their portion of the exchange would be taxed under their social security number. If your daughters are young (I can't remember the age) then a certain portion of their income would be taxed at their tax rate, and then any amount above that limit will still be taxed at your tax rate. I agree with you, that expert advice is the best go with that transaction. As far as FDIC insurance goes, for each account that is opened in a different social security number it is protected up to $250,000 against bank failure - just FYI.

Nice Post. Thanks

There should be no tax ramifications for moving money from one bank to another. Any transaction over $10,000 is reported to the Anti-Money Laundering Crime Force. Also, if the RV is as nice as we all hope, then the Bank that exchanges your dinar will have to send the IRS information related to the transaction. The tax effects under the current tax law have been discussed in other threads within the message board.