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gridkeeper

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  1. Does anyone have more specific information on the lifetime gift tax exemption limits? I know you can give up to $13,000 per year to any individual without them having to pay taxes on it. And it does not have to be reported to the IRS so it does not go against your overall lifetime exemption. My confusion is the lifetime exemption itself. It used to be $1 million total that one could give away tax free during ones' lifetime. However, there is talk of this having been increased to $5 million. I have been unable to locate anything definitive regarding this. Any information others have discovered regarding this subject would be most appreciated. Yes, I will contact a tax professional after the RV, but I would like to know what I am talking about when I do. Thus I have some responsibility to educate myself so I know what questions to ask and can gage whether the TP is knowlegable. Thank you. Gridkeeper
  2. I am very confused: If the IRS itself is saying that it is capital gains, then why is someone trying to argue against them? Mark, meaning no disrespect here, but you do sound like you are going out of your way to give the IRS an argument they do not now have. And it makes no sense. You, yourself, in one of your posts below, admits this is an asset. So if you sell an asset how can you possibly call the proceeds ordinary income and report it as 'interest income'? This looks like falsification of IRS documents to me You, yourself have admitted that there is absolutely NO direct IRS code which covers this as ordinary income. Yet there is MUCH to say that it is Capital Gains. I am going to include this here as well in case some miss it below: -------------------------------- Copied from One Dinar A Call to the IRS 03/14/2011 posted by Trac EdwardK on Tue Mar 29, 2011 4:37 am A Call to the IRS 03/14/2011 posted by Trac I called the IRS yesterday with a couple of questions. After spending approximately 15-20 minutes on hold I got to talk to a Mr. Kirk ID# 5906613. When you call 1-800-829-1040 you should ask for the Complex Individual Issues. I spent approximately 30-40 minutes with Mr. Kirk, a very nice man of which answered my question very well. 1. The first question of number one on most of our lists which concerned just how are we to be taxed on our currency transaction. He mentioned (2) publication that he would be using to answer this question. Pub 525 and Pub 550. His first question to me was did I purchase the foreign currency using a futures contract and then also mentioned 1256 contracts. I said no contracts. I then went on to explain exactly how I purchased my foreign currency, that it was sent to me from a foreign currency dealer here in the United States via Federal Express and I paid for it using a money order. He said if my gains were less than $200 then I would not owe any taxes. I said it will be over $200 gain. He then said you will be taxed as capital gains. I asked him what the tax rate would be ? He asked me when did I purchase the currency and I told him. In my case I have held my currency for well over a year. I told him I had been told that it could possibly be regular income ? His reply was no - Capital Gains. I asked him what publication and paragraph would I use ? He lead me to Pub 525 on the internet and page 33 of that publication then had me find Foreign Currency Transactions. I asked him so what is that Pub 550 you had mentioned ? He said that is if you purchased your currency using a futures contract. I said I did not do anything like that. He said then you will file this transaction on Schedule D - Capital Gains and Loses. Note: I did mention what about a getting a certified letter of opinion ? He said the cost of those start at around $1000.00 - there is no need for you to have anything like that. This currency transaction you have made is simply Capital Gains. 2. My second question was on the gifting. I stated out with gifting US currency and tried to get information about the lifetime gifting increase. The $5,000,000 lifetime gifting does not come into play the way it was previously explained to me. If you wish to gift US currency either keep it under the $13,000 gift exclusion. If you gift over the $13,000 exclusion the amount over the exclusion will be deducted from your lifetime gifting of $1,000,000. The $5,000,000 does not come into play at all with this gifting even though it is included in your estate lifetime your lifetime gifting exclusion over and above the $13,000 exclusion is still $1,000,000. I used the example that if I gifted one of my childrean $15,000 how will I be taxed on it if I have not used any of my lifetime gifting. He said I would file on the $15,000 gift - then subtract the $13,000 exclusion and the $2000.00 would be deducted from my $1,000,000 lifetime exclusion. Once I have exceeded my $1,000,000 total lifetime exclusion I would have to pay gifting tax of approximately 35% for any amount gifted from that time on that was over the $13,000 gift exclusion. So I asked him when my lifetime exclusion is used up I can still gift the $13,000 per year per person without having to pay any gifting tax ? He said that is correct. But if in a years time you gift to any one person over the $13,000 exclusion you will owe a gift tax on the amount that exceeds the $13,000. 3. My third question was at what amount does the recipient of the gift has to pay any taxes on the money they receive as a gift. He was a bit of a comedian and said they would enter that amount on there tax return where they enter their Christmas gifts. I am a little slow sometimes but did not take me long - and I said so they never have to file the gift on their tax return regardless of what the amount is ? He said that is correct. 4. My fourth question was if I gift the foreign currency to my children and I will use the example of : At the time I gift the foreign currency to my children it is worth $100 but when they sell it how will they be taxed on it ? He said capital gains. So I said do I give them some kind of letter or what to show when I gave it to them and how much I paid for it. He said yes they will need a paper trail of where the money came from and what the basis was on it. I said do I need to have this notorized ? He said no - and followed with the question - Is your tax return notorized. I said no. He said the paper trail does not need to be notorized either. So I gave him another example : If I wrote a letter stating the amount of the foreign currency - the price I paid for the currency and the date that I gifted the foreign currency and attached the receipt of my purchase of the foreign currency to show I actually gave them the gift after my proof of purchase date, would that be sufficient ? He said that would be fine. I said so what tax rate would they have to pay ? He said it would depend on how long they actually held the foreign currency. Well I thanked him sincerely for his time and information and we said goodbye. Take this for what it is worth to you. I don't care to debate this with anyone. I am only trying to pass on my actual experience with the IRS that I had today. If you call the IRS at 1-800-829-1040 you should ask for the Complex Individual Issues. I believe why some are getting conflicting answers from the IRS is because they are all calling different departments and the people are experts only on those particular issues. _________________ Continued from Trac I have heard so many conflicting stories as to how we will be taxed on this investment. I finally decided to call the IRS myself. And you can do this too just for peace of mind if nothing else. When you call 1-800-829-1040 you should ask for the Complex Individual Issues. If you do get any other answers other than what I was told please mention this publication 525 and in that page 33. Foreign Currency Transactions http://www.irs.gov/pub/irs-pdf/p525.pdf Page 33 Foreign Currency Transactions There will be some of us with such a low income that may even not have to pay any tax on this investment. This gets far more complicated and will require you to fill out the Schedule D - Capital Gains and Losses for your individual situation. Then you will use the Schedule D Tax Worksheet located in the Instructions for Scheduled D. http://www.irs.gov/pub/irs-pdf/i1040sd.pdf We will still owe whatever state tax we have on this investment too but still this is far better than paying our regular income tax rate, especially if you have been holding your dinar for more than a year. justpassntime, your post just above is 100% correct. I teach taxes and the agent is correct about the Section 988 requirement of the futures contract. Until any new tax changes come out, and at least 1 a week crosses my desk, concerning Capital Gains/Loss then the information and charts you have shown will apply. Any other information is rumor until it becomes fact (or law in this case). May God bless and keep you.
  3. I found the following post of extreme interest and wanted to throw it onto the Tax Issue Pile as we explore the truth of the situation. First of all, Yes, I will be talking to a tax attorney as soon as the Dinar RVs. Having said that: When I read here that we were to report this currency transaction on the IRS 1040 form as 'interest income', I realized that we/I could be charged with falsifying information on IRS forms, since this is clearly NOT 'interest income'. And I wondered if the IRS Agent saying this was just trying to create problems for a whole lot of us so they would have excuse to take everything away from us. [NOTE: Where the IRS is concerned, I don't believe it is possible to be too paranoid.] Now, if Mark or any other expert reads this, I would be interested in your opinion of this information. We can each make this call to this agent and ask. We can each pay the $1,000 and get a definitive letter on the subject, if we so desire. Or maybe we can go in as a group and pay for one letter. Lots of things are possible. Copied from One Dinar A Call to the IRS 03/14/2011 posted by Trac EdwardK on Tue Mar 29, 2011 4:37 am A Call to the IRS 03/14/2011 posted by Trac I called the IRS yesterday with a couple of questions. After spending approximately 15-20 minutes on hold I got to talk to a Mr. Kirk ID# 5906613. When you call 1-800-829-1040 you should ask for the Complex Individual Issues. I spent approximately 30-40 minutes with Mr. Kirk, a very nice man of which answered my question very well. 1. The first question of number one on most of our lists which concerned just how are we to be taxed on our currency transaction. He mentioned (2) publication that he would be using to answer this question. Pub 525 and Pub 550. His first question to me was did I purchase the foreign currency using a futures contract and then also mentioned 1256 contracts. I said no contracts. I then went on to explain exactly how I purchased my foreign currency, that it was sent to me from a foreign currency dealer here in the United States via Federal Express and I paid for it using a money order. He said if my gains were less than $200 then I would not owe any taxes. I said it will be over $200 gain. He then said you will be taxed as capital gains. I asked him what the tax rate would be ? He asked me when did I purchase the currency and I told him. In my case I have held my currency for well over a year. I told him I had been told that it could possibly be regular income ? His reply was no - Capital Gains. I asked him what publication and paragraph would I use ? He lead me to Pub 525 on the internet and page 33 of that publication then had me find Foreign Currency Transactions. I asked him so what is that Pub 550 you had mentioned ? He said that is if you purchased your currency using a futures contract. I said I did not do anything like that. He said then you will file this transaction on Schedule D - Capital Gains and Loses. Note: I did mention what about a getting a certified letter of opinion ? He said the cost of those start at around $1000.00 - there is no need for you to have anything like that. This currency transaction you have made is simply Capital Gains. 2. My second question was on the gifting. I stated out with gifting US currency and tried to get information about the lifetime gifting increase. The $5,000,000 lifetime gifting does not come into play the way it was previously explained to me. If you wish to gift US currency either keep it under the $13,000 gift exclusion. If you gift over the $13,000 exclusion the amount over the exclusion will be deducted from your lifetime gifting of $1,000,000. The $5,000,000 does not come into play at all with this gifting even though it is included in your estate lifetime your lifetime gifting exclusion over and above the $13,000 exclusion is still $1,000,000. I used the example that if I gifted one of my childrean $15,000 how will I be taxed on it if I have not used any of my lifetime gifting. He said I would file on the $15,000 gift - then subtract the $13,000 exclusion and the $2000.00 would be deducted from my $1,000,000 lifetime exclusion. Once I have exceeded my $1,000,000 total lifetime exclusion I would have to pay gifting tax of approximately 35% for any amount gifted from that time on that was over the $13,000 gift exclusion. So I asked him when my lifetime exclusion is used up I can still gift the $13,000 per year per person without having to pay any gifting tax ? He said that is correct. But if in a years time you gift to any one person over the $13,000 exclusion you will owe a gift tax on the amount that exceeds the $13,000. 3. My third question was at what amount does the recipient of the gift has to pay any taxes on the money they receive as a gift. He was a bit of a comedian and said they would enter that amount on there tax return where they enter their Christmas gifts. I am a little slow sometimes but did not take me long - and I said so they never have to file the gift on their tax return regardless of what the amount is ? He said that is correct. 4. My fourth question was if I gift the foreign currency to my children and I will use the example of : At the time I gift the foreign currency to my children it is worth $100 but when they sell it how will they be taxed on it ? He said capital gains. So I said do I give them some kind of letter or what to show when I gave it to them and how much I paid for it. He said yes they will need a paper trail of where the money came from and what the basis was on it. I said do I need to have this notorized ? He said no - and followed with the question - Is your tax return notorized. I said no. He said the paper trail does not need to be notorized either. So I gave him another example : If I wrote a letter stating the amount of the foreign currency - the price I paid for the currency and the date that I gifted the foreign currency and attached the receipt of my purchase of the foreign currency to show I actually gave them the gift after my proof of purchase date, would that be sufficient ? He said that would be fine. I said so what tax rate would they have to pay ? He said it would depend on how long they actually held the foreign currency. Well I thanked him sincerely for his time and information and we said goodbye. Take this for what it is worth to you. I don't care to debate this with anyone. I am only trying to pass on my actual experience with the IRS that I had today. If you call the IRS at 1-800-829-1040 you should ask for the Complex Individual Issues. I believe why some are getting conflicting answers from the IRS is because they are all calling different departments and the people are experts only on those particular issues. _________________ Continued from Trac I have heard so many conflicting stories as to how we will be taxed on this investment. I finally decided to call the IRS myself. And you can do this too just for peace of mind if nothing else. When you call 1-800-829-1040 you should ask for the Complex Individual Issues. If you do get any other answers other than what I was told please mention this publication 525 and in that page 33. Foreign Currency Transactions http://www.irs.gov/pub/irs-pdf/p525.pdf Page 33 Foreign Currency Transactions There will be some of us with such a low income that may even not have to pay any tax on this investment. This gets far more complicated and will require you to fill out the Schedule D - Capital Gains and Losses for your individual situation. Then you will use the Schedule D Tax Worksheet located in the Instructions for Scheduled D. http://www.irs.gov/pub/irs-pdf/i1040sd.pdf We will still owe whatever state tax we have on this investment too but still this is far better than paying our regular income tax rate, especially if you have been holding your dinar for more than a year. I found one other bit of info in my research today that I wanted to share. This guy sounds very interesting. Anybody have any experience with his information? http://cl.publicaster.com/ViewInBrowser.aspx?pubids=7889%7c6431%7c775714%7c775715&digest=/%2br1CWxzo9/ccmI98v/gTw&sysid=1 While I fully agree that we should each seek our own direct connection to a tax attorney, even they don't necessarily know everything. So having multiple sources from various experts seems the only way to truly protect ourselves. Just my two cents on the subject. gridkeeper
  4. I've divided this into two parts, the theory and the question. I have done this in response to the many comments about Dinar investing falling under section 988 rules for filing. THE THEORY Currency traders involved in the forex spot (cash) market can choose to be taxed under the same tax rules as regular commodities [iRC (Internal Revenue Code) Section 1256 contracts] or under the special rules of IRC Section 988 (Treatment of Certain Foreign Currency Transactions). IRC 988 applies to cash forex unless the trader elects to opt out. The Advantage of Section 1256 for Currency Traders Under Section 1256, forex traders can have a significant advantage over stock traders. By reporting capital gains on IRS Form 6781 (Gains and Losses from Section 1256 Contracts and Straddles), forex traders are allowed to split their capital gains on Schedule D using a 60% / 40% split. This means that 60% of the capital gains are taxed at the lower, long-term capital gains rate (currently 15%) and the remaining 40% at the ordinary or short-term capital gains rate, which depends on the tax bracket the trader falls under (as high as 35%). This results in an average rate of 23%, which is 12% less than the regular (short-term) rate. To Opt Out or Not to Opt Out of Section 988 Companies who profit from the fluctuation in foreign exchange rates as part of their normal course of business, fall under Section 988. This means their gains and losses from foreign exchange (such as buying and selling of foreign goods) are treated as interest income or expense and get taxed accordingly. Consequently, they do not receive the beneficial 60/40 split. So if cash forex is subject to the Section 988 rules, how can a trader elect the more beneficial Section 1256 split? Forex traders are also exposed to daily exchange rate fluctuations, and their trading activity falls under the provisions of Section 988, because they are not cashing in excess currency from a trip abroad, and are trading the currency as an investment. The Dinar investor is doing the same as any Forex currency trader. They purchase, and have the opportunity for loss or gain depending when they sell within the daily fluctuations. Therefore the daily fluctuations can be considered part of a Dinar trader's assets in the normal course of their business, and since the IRS gives the the currency trader (thats you) the option of rejecting (opting out) of Section 988, the Dinar trader can elect that the gains be taxed under the favorable 60/40 split of Section 1256. What do you have to do to opt out of Section 988? Even though you don't have to file anything with the IRS to opt out, you are required to do so "internally"; i.e., you must keep records in your own books about the fact that you are opting out of Section 988. What would a Dinar trader do When Tax Time Comes? Forex traders in the United States who trade with US-based NFA-member FCM's or RFED's receive 1099 forms from their broker at the end of the year like stock and futures traders do. They normally pull up reports online from their accounts and seek the help of a tax professional. In the case of those who have bought Dinar from 3rd parties and will be redeeming them directly, their purchase receipts combined with the FinCEN form they will be required to fill out to redeem their Dinar, and their bank statements of deposit, will act as their books and reports. It might be even behoove one to create an affidavit with three witnesses, stating their intent to opt out of 988 and claim the 1256 option. In any event, like forex traders, they should still seek the help of a tax professional. THE QUESTION Why would this NOT be an appropriate position to stand upon?
  5. Okie is over 70. Who is he? Well, he knows Cheney personally. This is not his claim to fame, but it does suggest he may have sources in high places. He is a most intriguing individual with an anormous heart and a lot of humility.
  6. Actually there is nothing constitutional about Welfare either!
  7. Someone who would speak in such a mean way about somebody's looks is not a nice person.
  8. Oakie is hardly schizophrenic. He rarely displays anything but very positive vibes. Schizophrenics have multiple personalities.
  9. Don't worry, Nonlinear, (your name says it all ), there are a bunch of old grouchies hanging around this place. They are so jaded in their perspectives that their only joy in life seems to be waiting around in a hole under the rock to jump out and bite the ankles of anybody who posts anything positive. We have to forgive them, though. They are just tired and sore from getting their hopes up and then having them dashed. A little research would let them know that this thing has 'almost gone' several times in the past many years so there were good reasons for their hopes to be 'up' and no one was intentionally putting anything over on them. It takes incredible amounts of positive energy to push back against the negative energy they are now succumbing to which plays right into the hands of those who don't want the Dinar to RV. Anyway, thanks for your post, and especially for your cheery atitude. Not many here have the courage anymore to post anything positive without the disclaimer that it is all a bunch of trash. Because if they do, like you, they get their ankles bitten. And while it smarts a bit, stay true to yourself. Maybe if enough of us are happy and cheery, we can turn the grouchies into gladdies. Hey, it is worth a try. P.S. You don't suppose some extra Vitamin D would help them do ya?
  10. Are you serious? Facebook is a delivery system. Credibility is only gained when the individual reading it does his own research and discovers the truth of it (or lack thereof) for himself. (You have to actually use discernment.) What you are telling us is that you are more concerned with what other people think than you are with doing the work of finding out the truth about what is really going on in your country? Wow....just wow. gridkeeper
  11. This has been going on for at least 30 years that I know of so it isn't just about getting the word out. Many have heard it and realized it was true; most found it too horrible to even consider and simply went about ignoring it...while the Problem grew behind their ignorance. You can't blame them. This is too horrible to want to believe. Yet Lincoln himself warned us about it, as did Kennedy and others. Anyway, the fraudulent government quickly attached a tail to the GS called NESARA (an originally real phenom which was twisted into another fraud) and then berated it on one hand while supporting it on the other in order to make the whole Global Settlements thing appear like a joke so nobody would believe it. But behind the scenes it was continuing. Many poor or extended countries were desperately waiting for the GS in order to get back on their feet and make a new start for their people. (of course, others were waiting to steal it all) But Treason? Treason isn't the half of it. What is going on right now in D.C. is so corrupt that it makes your teeth ache just reading about it. Here is a link that will give you an overview of just a fraction of the corruption taking us down a very frightening road: http://www.truthwinds.com/siterun_data/nesara/news/news.php?q=1313113976 The great British writer and economist, Christopher Story was murdered for writing about the truth of this. He is the one that brought to light, at least for me, about Cottrell and Hodges. This is the hugest, most proliferate scam of the last 10,000 years. At least. And when Glenn Beck tried to reveal it gently, nudging at the edges of it (was all he was allowed to do), he found himself eventually fired. They own all the media. How is anyone going to get the news out to the world? Well, it IS coming. This is why 'good guys' working behind the scenes had to take back the financial system. Rescue it from the debt based system it had become and return it to a credit based system backed by real assets. And all to rescue the world from falling into the net of some very, very bad people completely addicted to power and control. A week or two after the Dinar all of this info is expected to begin flowing out to the people, once reporters have their hands untied. Gloryoski! Thought I'd never see this day! gridkeeper
  12. Good job, EGK! And, thanks for the info! We have all been kept in the dark for too long. Of course, if the Global Settlements are in play then the Treasury can't block trading of the Iraqi currency, can it? And doesn't that mean that the officers of the U.S. Corp are about to be removed from D.C.? And an interim government put into play? For six months until elections can be held? Sure hope your Source is right about it happening today. gridkeeper
  13. Actually, last I heard, the GS was going ahead with or without Obama. I just don't happen to believe anything is standing in the way anymore. The RV is there. (fingers crossed) One small point: It isn't the RV that is causing all those banks to have to 'test' and 'practice'. RV's are nothing. You just add in the rate for the country and go...as far as the bank is concerned. And most banks are just agents for a Foreign Exchange company, so they don't even have to do that. They just read it off the screen. No biggie. . No. All those machinations we have been seeing with 'pinging', etc. have to do with the new financial system that goes along with the Global Settlements! The world is about to change towards freedom and the Iraqi Dinar is going to have a very big part in that! gridkeeper
  14. Right on, EGK! What you speak is very true! I'm always amazed how few know about what is really going on out there. "Dinarians" seem to think that they live in a vacuum. It is a most curious phenom. Anyway, glad to find another who is in sync. gridkeeper Actually, it is real news with real people on real 'front lines' doing the job. People of great courage. They are the ones making sure that when your Dinar does RV, you won't be paid in Fiat currency! But no, you won't be reading about it in your newspaper or watching it much on CNN...at least not yet, but it won't be long. Even Jeb Bush himself spilled the beans the other day about the new financial system and using a 'basket of currencies'. Certainly shocked this viewer. gridkeeper
  15. I thought we weren't supposed to bash people around here? welllll...I was a Banker for 13 years (B of A) and we would have most certainly called our big customers to let them know. Indeed, Big Customers are treated quite differently than the rest of the world. But then that is the problem now, isn't it? As it happens I have a contact that is one of the signers of the Global Settlements. He happened to mention how very close to the nut Oakie was on many of his predictions. Many times this was scheduled to go and then something/one got in the way and stopped it. He also said that the RV would not go until the Global Settlements were completed. He has been hard at work on finalizing them all week. In fact, at last word they were trying very hard to have it all wrapped up by Tuesday night. Obviously it took longer than they expected. Been waiting to hear how they are doing. But then no one here is interested in that sort of thing...right? gridkeeper
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