lookingforloot

This is one that I do not agree with Adam on either--as a CPA. Paying off the debt is an individual and personal decision. Beau777 above has the right idea. You do not get it all back on your taxes. If you are in the top federal bracket of 35%, the most you can save on federal tax (state would have to be added if your state has an income tax) is 35% of the amount paid in interest, and that is only if you can itemize your deductions. Many people cannot itemize their deductions because the standard deduction is higher. For a married couple, the amount of interest on the $100,000 in the illustration, would not allow them to itemize unless they had a lot more itemized deductions. In the example given of $100,000 house balance at 6%, you would be paying $6,000 in interest, which means you could possibly save up to $2,100 in federal taxes--you are still out of pocket $3,900. Now if you invest that $100,000 at 8% you will receive $8,000 in investment income and pay taxes at the same rate of 35% or pay $2,800 in taxes on that income. Therefore, on that $100,000 that you could use to pay off your home or invest--there is actually only a $700 gain. That decision has to be an individual decision. In this economy, security of knowing your home is paid for is worth much more than the small gain above for many. Others, feel that the investment is of greater benefit. Bottom line, never let the tax tail wag the business dog. If a decision is not a good one for you when you ignore the tax aspect, the tax aspect cannot make it a good decision. I will not attempt to tell you how you should handle your money. You make that decision with the help of trusted, competent advisors. You must decide

While I do believe the statement from the IRS agent to be true, you cannot necessarily take it as a fact. The agents are trained in different areas of the tax code and do not necessarily (or probably) know everything about taxes. As a matter of fact, anyone that tells you they know everything about the tax code--whether a CPA, lawyer, or IRS agent--is either delusional or telling an untruth.

This is a misconception. The fact that you reinvest does not mean you don't have to pay tax on it now. Depending on the circumstances, it may be true but probably will not be the case.

As an accountant with a tax practice, this may seem strange--but I am in favor of a flat sales tax. No forms or returns for the individuals to fill out. Of course, the liberals say that is not fair because the poor bear a greater burden than the more affluent. It is the only fair way because we all determine how much we spend in taxes. We can shop at Wal-Mart or we can shop at the more expensive stores. Rather than some of us bearing the entire burden, everyone participates Of course, congress will never let this happen. They use the tax code to control social activities of the people. You get tax breaks for what the congress wants to endorse and you don't get them for things that they are against. Just look at the tax credits for making energy efficiency improvements to your home or for hybrid cars--and the list goes on. Someone said in a post to one of the threads on here that they could not write a law that only applied to certain people--that is not correct. Look at the special tax breaks given to certain areas after disasters such as Katrina, the midwest floods, etc. It is difficult to get fair treatment for the taxpayers as long as non taxpayers can vote into office those that are going to give them the fruits of the taxpayer's labor.

You should consult a good CPA and/or tax attorney--preferably one that is also invested in this. That way, you know they have done their research. This is not your ordinary everyday investment and none of us are quite sure how it is going to be handled. One word of warning--We are seeing promoters of various "tax shelters" coming out of the woodworks. Be very warry of them!! Many are promoting trusts, LLCs and Corporations, etc that they will set up for you for a fee and tell you that you can avoid taxes by using them. Please be aware that IRS has set up a new unit to audit wealthy individuals and their various entities and will be looking at those entities and individuals very carefully. Also, when they determine that any of these programs are bogus, the first thing that they make the promoters do is turn over their customer list to the IRS and everyone that bought the program will be audited. This is not to say that there are some legitimate programs out there that may help reduce taxes, only to warn you to check them out carefully before purchasing one of them. Our responsibility is to pay what is legally required of us and not one penny more in taxes.

I believe it will RV--at what rate and when, I don't know. Since I am also conservative (would make Ronald Regan look like a liberal) and am on the right--we must be right

I agree! Just show some respect while expressing your "freedom of speech" If you have any valid point, you do not have to resort to name calling and making fun of people. If you don't have a valid point, why post?

You and your family are in our prayers and thoughts. May God keep his healing hand on, not only your mom, but also you and the family.

I have read with interest all of the posts in this thread. I am a CPA and taught income tax at a local university for a number of years. There is so much misinformation in these posts! There are some that are totally off the wall and some that are partially correct. Please know that the tax code is VERY complex and nearly every section has an exception to it--and many of the exceptions have further exceptions; therefore, I answer all tax questions with "It depends" and start asking further questions to see what their situation is because every situation is different. My advice to you is to get a good CPA and/or Tax Attorney and be sure that they are familiar with this investment. Also, if there are as many American investors as there appears to be from these forums, the potential tax revenue is tremendous--don't be suprised to see something written into the tax rules just for this investment.

I see several posts that say they have talked to tax attorneys and are told that there is no tax on the exchange. I am afraid that some people are talking about just attorneys--not tax attorneys. Both tax and law are very broad subjects and most attorneys know little to nothing about taxes--just like most accountants know little to nothing about non tax law. CPAs love to get clients where attorneys have prepared their taxes in the past because they know there will be a good fee in amending the last three years that the attorney has screwed up. That being said, a good tax attorney that is both a CPA and attorney and practices tax law is a real asset and I highly recommend that one be consulted. I see that you are in Mississippi--what part? I may be able to give you the name of a good tax attorney. Logically, this is an investment and, as such, would be taxed as a capital gain transaction. However, it seems like there are a lot of investors out there that have held their dinar for the long term holding period. If the government can figure a way to get a higher rate of tax (particularly now with all of the spending and the dinar holders will be some of those "evil rich people" after the RV), they will. A law could easily be passed that is specific to the cash in of this and it could be made retroactive. Personally, I am not going to get excited about it until after the RV happens. I will cash in and set aside about 40-50% for federal and state tax and wait to see what happens.

That is correct as far as it goes. There is no tax on gain of less that $200 for personal exchanges. It is hard to see how you will fall under this threshold if the RV actually happens

Plus the IRS just issued a RFQ (request for quote) for new shotguns--not kidding

This is actually one of the more interesting threads that I have read. It is good to see the wide variety of backgrounds of fellow dinar investors. I am a CPA with a small practice and retired college instructor

I would love for it to be this week but it sure would interfere with my busy season at work! It would be very hard to work once I get the rv payoff

Thank you, Mervin. Well said and factual--which only means that the kool-aid crowd will believe none of it.

Yet they have had the most Miss Americas

'Bout time!

Don't want women to like me but if there are any good looking rich men out there--now that is another story

Praxis is a teacher?? OMG that is what is happening to our young people!! And, yes, Praxis, I have stepped foot on a reputable university--actually taught at one for a number of years. It is really a reputable one--not a socialist indocrtination center

snopes.com DOES have a bias. It is run by a very left leaning couple.

SNOPES.COM has been investigated and proven to be a left wing site. Read a few of their "proofs" and it is also obvious

I don't disagree with the 16th Amendment at all. The 16th Amendment is completely legal and constitutional. That's because the Federal Income Tax is an INDIRECT excise tax on the electable ACTIVITY OF a "trade or business." This is where most "patriots" go wrong. They think it is a DIRECT tax and therefore unconstitutional. The Supreme Court has acknowledged it as an INDIRECT excise tax over 60 times. Nobody reads. The old adage comes to mind: Those who fail to learn from history are doomed to repeat it. My copy of the constitution-16th amendment: "The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several states, and without regard to any census or enumeration." How do you arrive at your explanation regarding what it says?

I want it to happen as much as anyone but he did say "100% CHANCE I don't think that is a guarantee