IRS caused delay?

[newbie]

I would like to throw out two proposals:

1. The US Feds (IRS) told them to wait until they have their new tax code in place and forms printed and agents assigned BEFORE it RVs so they are sure they get their cut up front and personal.

2. They convinced them to come in very low, as to keep us from becoming rich. Someone else posted this theory that no govt.' wants their people rich. I can see his reasoning on this.

I see both of these as a possibility. And I admit I could be totally off base. Open for discussion.

Here is a bit of trivia thanks to my 6th grade teacher sister:

What was the FIRST gold coin minted for currency purposes????????????

Yep! DINAR!

[krucialmix]

IMHO we are gnats on a horse in this. The IRS can't convince another country to do a low rate based on the few that will make money (and stimulate the economy).

Sometimes I think we forget. This is about Iraq's future, not ours. We are just fortunately along for the ride.

The part about paperwork and being ready? Could be some truth to that.

[wolf5771]

krucialmix is so right ...we are lucky to be part of this.There is no law that says they even have to exchange our money. This could turn out or will turn out to be a great thing for many people.There is no doubt the Iraqi dinar will reach $3+ U.S. the only real question is will we have to turn in our big bill before that happens.

If any of you are savy on this tell me will we be able to open an account in a U.S. bank Based on Iraqi money?

[sarah77]

where is your link or do you have one???

[The Watcher]

First of all the IRS is not a rule making authority. They follow the will and intent of the Congress. The IRS does not have the independent authority to make a deal with any country. The tax situation is simple. You pay capital gains, or you don't, depending on the interpretation of your CPA. There is no special law or ruling required on the conversion of currency. The rules are already in place. This is a ridiculous debate.

[mrref]

First of all the IRS cannot tell Iraq what to do or how to do it, now they can maybe assist and make recommendations but that is about it. All of this other crap that is passing down is nothing more than more RUMORS

[cbmkt]

You are on the mark, tax laws are already in effect.

[teenager]

The IRS has had seven years to get their (SHT) forms together:)

[jayb1rd]

you cant open a US account with Dinar. they will have to convert it to US $. if you bought your dinar through dinartrade.com, Ali has already committed to cashing you in. if you open an Iraqi account with dinar, you may be restricted as to how much and how often you can make a withdrawl. If the revalue happens without the lop, i will be cashing in, and depositing in US bank(s). my accountant is reviewing the tax laws, and so far it falls under short-term capital gains. hopefully it happens this year, so we can take advantage of the 15% tax.

[karen]

common sense tells me, if they can pull off a high rate, everyone will benefit, 300,000 investers in this that are going to be spending and investing and paying taxes will have at least some positive impact on our economy. jmho. jim

[krull]

Do you go to the same Taco stand i do?

[Dryden01]

It is not a plausible thing to anticipate that the IRS would place any delay or impediment in the path of Iraq's implementation of the RV/RI. First of all, the documentation would have to be completed here, instead of Iraq, at the point we redeem the dinars in the US. The mechanisms to detect the redemptions are already in place within the American financial and banking systems. In my opinion the dinars should function like any other capital gain based personal investment and the taxes due will become payable on the April 15 subsequent to the taxable year the gains were realized in. If anything, the sooner the public gets the money the better so the government would benefit greatly by having the RV/RI completed now in 2010. If we want to play an advocatus diaboli, we might speculate on a deliberate delay to 2011 since, if the RV occurs in 2011, many would have to pay substantially higher Obama capital gains rates when they trade the dinars in 2011 and the gains would be payable in April of 2012. Frankly the new wealth would tend to stimulate American economic growth as people increase purchase of goods and services with their dinar profits so the sooner the better.

[mrref]

The IRS has a hard of enough time in taking care of their own crap let alone trying to help another country with their taxes. come on give a break..............

[georgek146]

you cant open a US account with Dinar. they will have to convert it to US $. if you bought your dinar through dinartrade.com, Ali has already committed to cashing you in. if you open an Iraqi account with dinar, you may be restricted as to how much and how often you can make a withdrawl. If the revalue happens without the lop, i will be cashing in, and depositing in US bank(s). my accountant is reviewing the tax laws, and so far it falls under short-term capital gains. hopefully it happens this year, so we can take advantage of the 15% tax.

This was posted by someone else and I googled the tax code and the exact page and I printed it our for my records. It's 15% right now unless they change it.

"You will all save yourself a lot of heartache if you just go read section 525 of the IRS Code, page 33 half way down the page. Foreign currency exchanges that exceed 200 dollars will be taxed as a capital gain."

George

[Nate]

"this theory that no govt.' wants their people rich. I can see his reasoning on this"

Not to be rude but that is probably one of the dumbest things I've read in a long time. I wont even waste my time explaining how dumb that is

[jckmike5]

You said so it falls under short-term capital gains. Is that because you have had it more than a year?

Thanks

[Butifldrm]

As far as I can tell, the higher the RV, the more money we make and consequently the more money the IRS makes. now I do believe the IRS might be making plans on how to capture capital gains up front, hopefully time will tell. Just my thought.

Have a great day!

[milttomp]

Here...Play all you want. Capital Gains Calculator http://www.moneychimp.com/features/capgain.htm

[georgek146]

"You will all save yourself a lot of heartache if you just go read section 525 of the IRS Code, page 33 half way down the page. Foreign currency exchanges that exceed 200 dollars will be taxed as a capital gain."

/QUOTE]

All of this worrying about taxes is rather humorous. To me it will be the BEST problem I have ever faced. Let's worry not so much about taxes on your fortune, let's concentrate on getting the fortune.

[babygirl08]

This was posted by someone else and I googled the tax code and the exact page and I printed it our for my records. It's 15% right now unless they change it.

"You will all save yourself a lot of heartache if you just go read section 525 of the IRS Code, page 33 half way down the page. Foreign currency exchanges that exceed 200 dollars will be taxed as a capital gain."

George

Can I get a HUGE round of applause for George PLEASE!!!! I have been trying to tell people the same thing for weeks now. I have researched this, talked to my investment banker, checked the IRS website; obtained a LOT of confusing, mumble jumbled information so finally I picked up the phone and called the IRS myself!!! You are right on George...YAY George, to glad to see that someone else gets this as well. There is a little more to it; but you just NAILED 90% of it THANK YOU THANK YOU THANK YOU

[babygirl08]

"You will all save yourself a lot of heartache if you just go read section 525 of the IRS Code' date=' page 33 half way down the page. Foreign currency exchanges that exceed 200 dollars will be taxed as a capital gain."

/QUOTE']

All of this worrying about taxes is rather humorous. To me it will be the BEST problem I have ever faced. Let's worry not so much about taxes on your fortune, let's concentrate on getting the fortune.

I agree with you to some degree however, taxes on this gain CAN BE; depending on your situation and income bracket; a BIG DEAL. Its nice to know that on the front end, just keep it in the back of your minds that before you go blowing your new fortune that you should really contact someone you can trust or know of; that is in the profession of taxes, investments, heck call the IRS - just get advice because the taxes are going to be a chunk. But YES; let's dock this SHIP first and take care of the unloading (taxes) once we are safely docked and ready to get off this cruise

[jmcsh49890]

I think your way off base, Iraq has there own gov to run and I don't think that our IRS has anything to do with it.

[Catl6147]

There were rumors that the government wanted to keep all would be investors at the government level. Does anyone know if this was true, and if they really could have pulled it off?? We are new to the currency investing and it gets mor einteresting all the time. Thanks for the info.

[gman51]

Here is another bit of trivia: Where is the oldest civilization on earth? Mesopitamia (Iraq)

[wilecoyote]

There are going to be tax liabilities with the US govt owning what they have in the foreign reserve. Wonder if that is why the IRS is involved???? HHHmmmmmmmmmm????.