Income Tax Post RV

[Nadita]

I have known that the taxes for our investment will be capital gain but just wanted to confirm it again with my accountant.  He still says capital gain if you treat your investment as an investment and if you have been holding it more than a year. The new capital gain rules is.. if you make under $450,000, the capital gain will be 15% plus state tax if any.  If you make more than $450,000 (which we all will be), then the capital gain will be 20% plus state tax.   I know there are a lot of arguments on whether it's capital gain or ordinary income.  If you see it, from trading currency, because you buy and sell rapidly, then it can be taxed as ordinary income.  I am going to claim capital gain then put away the 20-25% extra in some mutual funds earning good interest. Just in case, I have to pay more, I have the funds to pay.  If not, extra money in my pocket.  I am not suggesting anyone to follow me on this one as each of us have to check with our accountant and financial planner.  I am willingly pay Uncle Sam his fair share but not stupid enough to pay more than I have to.  

 

I have been working with my accountant for the last 15 years and I know he is an honest man so I trust him

 

[pattyangel]

Nadita, thanks for sharing this information. 

 

And great advise in checking with your accountant and financial planner. 

 

If anything, I've learned so much from our DV members.  There are so many DV members with caring hearts, and Nadita your on top

of my list. 

[Nadita]

Nadita, thanks for sharing this information. 

 

And great advise in checking with your accountant and financial planner. 

 

If anything, I've learned so much from our DV members.  There are so many DV members with caring hearts, and Nadita your on top

of my list. 

Thank you, Patty.  I am going to claim as "investment"

[one2one]

why worry about the when and if RV ? 

 

it might happen soon or never :

 

I bought 3 million dinars---$ 3200 bucks :

 

stash them in my laundry basket--with dirty socks--a safe place

[Osmosis]

Thanks for sharing that..........

 

why worry about the when and if RV ? 

 

it might happen soon or never :

 

I bought 3 million dinars---$ 3200 bucks :

 

stash them in my laundry basket--with dirty socks--a safe place

[Goldiegirl]

tash them in my laundry basket--with dirty socks--a safe place

You might want to use your dirty underwear instead. .

[littlesam]

You might want to use your dirty underwear instead. .

 

   

[Nadita]

You might want to use your dirty underwear instead. .

Goldie, 

 

LOL LOL  then no one will steal it lol lol  I hope when time to cash it.. it still looks uncirculated lol

[automag]

Hate to be the bearer of bad news........Capital Gains went up this year to 20%. Plus if I am correct you also get a bump from health care of up to 3.6%. So if it does go capital gains you gonna see 24% minimum. Sorry Bush tax cuts are over...........There is no guarantee it will go capitol gains as compared to regular income. That will be 39.6% plus the healthcare bump so that would be 44.2% then add  state tax if required. California is 13%........lotta tax ain't it......pay it or legally minimize it and move on. Right now you don't have anything to worry about as you hold nothing till it RV's anyway.......Consult legal people.....and be safe. Don't believe anything from anybody including me. I am hoping on capital gains based on form 525 that changes from ordinary income to capital gains upon exchange.......CHECK it out for yourself.  Please. I think they redid 525 for this event.....but that is pure speculation.......Do your due diligence.

[Nadita]

Hate to be the bearer of bad news........Capital Gains went up this year to 20%. Plus if I am correct you also get a bump from health care of up to 3.6%. So if it does go capital gains you gonna see 24% minimum. Sorry Bush tax cuts are over...........There is no guarantee it will go capitol gains as compared to regular income. That will be 39.6% plus the healthcare bump so that would be 44.2% then add  state tax if required. California is 13%........lotta tax ain't it......pay it or legally minimize it and move on. Right now you don't have anything to worry about as you hold nothing till it RV's anyway.......Consult legal people.....and be safe. Don't believe anything from anybody including me. I am hoping on capital gains based on form 525 that changes from ordinary income to capital gains upon exchange.......CHECK it out for yourself.  Please. I think they redid 525 for this event.....but that is pure speculation.......Do your due diligence.

I understand it goes up to 20% if you make more than $450K.. nothing to worry as we are holding something that is not value very much at this moment.  It can be a hefty tax and Uncle Sam will be smiling  

[automag]

It went up to 20% with no exceptions. If it qualifies for capital gains it going to be 20%. 200.00 or two million....20%.....Man I have been sitting on pins and needles for years to get it done before Bush tax cuts expired but alas no bueno. Well it's the law and we can't win Nadita. There you go!

[Nadita]

It went up to 20% with no exceptions. If it qualifies for capital gains it going to be 20%. 200.00 or two million....20%.....Man I have been sitting on pins and needles for years to get it done before Bush tax cuts expired but alas no bueno. Well it's the law and we can't win Nadita. There you go!

that is true... well a piece of pie is better than nothing  

[yota691]

The Banks will want you to sign a Investment form, from what I hear. So they can legally tax you... 

Edited April 1, 2013 by yota691

[The Machine]

For anyone out there from the UK if we end up having to pay capital gains which I dont think we do .... it'll be 10%

[The Machine]

For anyone out there from the UK if we end up having to pay capital gains which I dont think we do .... it'll be 10%

 

And this 10% can even be avoided if you trust your other half ..... transferring any assets or gains to your wife or civil partner means you pay nothing ..... interesting

[yota691]

And this 10% can even be avoided if you trust your other half ..... transferring any assets or gains to your wife or civil partner means you pay nothing ..... interesting

Or a Trip to Kurdistan..just saying   

[easyrider]

This is NOT an investment this is a currency exchange no matter what. I have spoken with Citi bank which i have a long time friend that works as a personal banker and thats what he told me they would do and they will treat it as such, you are simply exchanging your foreign currency for USD.

Edited April 1, 2013 by easyrider

[Kaduku]

You can thank those who voted for this IMPOSTER/Usurper Obama! Even though Obama knowingly knew he'd win via Voter Frauds!!!

Hate to be the bearer of bad news........Capital Gains went up this year to 20%. Plus if I am correct you also get a bump from health care of up to 3.6%. So if it does go capital gains you gonna see 24% minimum. Sorry Bush tax cuts are over...........There is no guarantee it will go capitol gains as compared to regular income. That will be 39.6% plus the healthcare bump so that would be 44.2% then add  state tax if required. California is 13%........lotta tax ain't it......pay it or legally minimize it and move on. Right now you don't have anything to worry about as you hold nothing till it RV's anyway.......Consult legal people.....and be safe. Don't believe anything from anybody including me. I am hoping on capital gains based on form 525 that changes from ordinary income to capital gains upon exchange.......CHECK it out for yourself.  Please. I think they redid 525 for this event.....but that is pure speculation.......Do your due diligence.

[Patty B]

I find this all very exciting,

no matter what the tax is!!

I am grateful for whatever

I will be left with after taxes!

I didn't work for it, all I did

was take a trip to the mall

and purchased it at a currency

kiosk! Some I bought @ internet

dinar sites, took all of 15 minutes.

So, no matter what, I am grateful!

[pattyangel]

This is NOT an investment this is a currency exchange no matter what. I have spoken with Citi bank which i have a long time friend that works as a personal banker and thats what he told me they would do and they will treat it as such, you are simply exchanging your foreign currency for USD.

This advise was also passed on to me.  Not an investment, a currency exchange.  Never use the phrase, "its an investment."  And get the bank to give written notice that it is as such.  Anyone have any more information on this. 

[rozman]

You may want to see if the bank will let you pay off any loans in the Dinars. This has some possibilities. Also convert some to gold and silver. You can also put dinars into a roth IRA which all gains are not taxable.

[Nadita]

Or a Trip to Kurdistan..just saying   

Is it safe ?

This is NOT an investment this is a currency exchange no matter what. I have spoken with Citi bank which i have a long time friend that works as a personal banker and thats what he told me they would do and they will treat it as such, you are simply exchanging your foreign currency for USD.

So if its a currency exchange, you are saying we don't pay any taxes. But this currency exchange can be millions in return. I'm game if it is the way it is. But I will put away a chunk for the snow man to show up in summer knocking at the door demanding payments

[tankdude]

I'd love to go back and see the things I couldn't see in 2004  Apparently there are a few European travel companies that are offering trips.

 

http://www.traveliraqikurdistan.com/home/welcome/

 

And weighing in on the tax discussion -

 

ExecConsult - a member here at DV who is an estate planning attorney - has some great information here

 

http://whatisiraqidi...me-tax-analysis

 

In a nutshell, he writes - "Be safe with the IRS – it is ordinary income under Section 988. Dinar investors should expect to pay 35% maximum federal tax rate as ordinary income following any income event with their dinar."

 

I will add the disclaimer - he is an attorney and not a tax consultant. He has done some great research, but it is just his opinion.

[easyrider]

I'd love to go back and see the things I couldn't see in 2004  Apparently there are a few European travel companies that are offering trips.

 

http://www.traveliraqikurdistan.com/home/welcome/

 

And weighing in on the tax discussion -

 

ExecConsult - a member here at DV who is an estate planning attorney - has some great information here

 

http://whatisiraqidi...me-tax-analysis

 

In a nutshell, he writes - "Be safe with the IRS – it is ordinary income under Section 988. Dinar investors should expect to pay 35% maximum federal tax rate as ordinary income following any income event with their dinar."

 

I will add the disclaimer - he is an attorney and not a tax consultant. He has done some great research, but it is just his opinion.

he is ONE attorney thats has an opinion, ill stick with mine.

Is it safe ?

So if its a currency exchange, you are saying we don't pay any taxes. But this currency exchange can be millions in return. I'm game if it is the way it is. But I will put away a chunk for the snow man to show up in summer knocking at the door demanding payments

no you will pay taxes but this is NOT supposed to be deemed as an investment its deemed as a foreign currency exchange transaction, taxes are inevitable, they also have different fINcen forms that you will need to fill out, be careful.

Edited April 1, 2013 by easyrider

[Nadita]

This is NOT an investment this is a currency exchange no matter what. I have spoken with Citi bank which i have a long time friend that works as a personal banker and thats what he told me they would do and they will treat it as such, you are simply exchanging your foreign currency for USD.

Easy,

I thought in one of the threads you mentioned capital gain, because you were reading it in IRS website or something like that ? I think no matter how you want to dissect this investment, somehow, somewhere in the calculation, we still need to pay taxes? Currency exchange can be done if the amount converted to USD doesn't mount in millions. the banks has to report any transaction above 3000 or 10,000 USD depending on the bank policy, just my opinion