DavidNY

http://en.aswataliraq.info/(S(qto0jj5502u45t45ayj0qibm))/Default.aspx?page=article_page&c=slideshow&id=145872

http://www.irs.gov/pub/irs-wd/1103022.pdf Bottom of page 2

Ive been browsing these forums for a few months now, and thought I'd share some info that I came across this week, when discussing the dinar situation with friends. In my understanding of the explanation below, since we hold the money in paper form, we will pay our gains as income tax. There will be no "capital gains" taxes, as it will be taxed as ordinary income. Here's to hoping everyone lives in Texas (no state income tax). See below Sec. 988. Treatment of certain foreign currency transactions (a) General rule Notwithstanding any other provision of this chapter - (1) Treatment as ordinary income or loss (A) In general Except as otherwise provided in this section, any foreign currency gain or loss attributable to a section 988 transaction shall be computed separately and treated as ordinary income or loss (as the case may be). ( Special rule for forward contracts, etc. Except as provided in regulations, a taxpayer may elect to treat any foreign currency gain or loss attributable to a forward contract, a futures contract, or option described in subsection ©(1)((iii) which is a capital asset in the hands of the taxpayer and which is not a part of a straddle (within the meaning of section 1092©, without regard to paragraph (4) thereof) as capital gain or loss (as the case may be) if the taxpayer makes such election and identifies such transaction before the close of the day on which such transaction is entered into (or such earlier time as the Secretary may prescribe). 2) Gain or loss treated as interest for certain purposes To the extent provided in regulations, any amount treated as ordinary income or loss under paragraph (1) shall be treated as interest