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Sgwmax

debt notes, securities and CE tax question

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I am trying to understand what the community is referring too when the topic of taxes are raised as it relates to the impending CE.  I asked my tax advisor, and he explained to me that because the Currency being exchanged is in fact a debt note, and NOT a SECURITY, there are no taxes to be paid on any gains realized when the exchange is completed... so, please help me with understanding what I'm missing... Thanks everyone~!

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I think that I would like to be in contact with your Tax advisor. This is a totally new idea that I have never heard discussed. What are the credentials of your Tax advisor. Would he care to join this forum and educate us?

Thx sgwmax

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There  is 2 trains of thought: 1 is that is that you are just changing one currency for another currency and in the past there has not been a charge.  We were not allowed to buy Kuwait Dinar when that happened.  So the first thought is no tax because it's a currency exchange.

 

The second thought is that we all bought it because of the potential that it had.  A once in a lifetime deal.  Some think that because the government made it possible to purchase the dinar that we should treat it as an investment and therefore have to pay a capitol gains tax.  Short term - less than one year - was 25% - may be more now and over 1 year - long term - 15% tax in the past - I'm not sure what it is now. Of course whatever the fed does the state will take it's chunk too depending on your state.  If our government is as involved as ppl say then they will want their chunk of our money.  You are going to pay something one way or the other - just pay it and get on with your life without looking over your shoulder/

 

Everyone thinks their tax advisor is right; just prepare to back up your theories and of course your tax advisor would represent you in all questions.  I don't see the point in trying to avoid them - maybe not pay as much - but not to avoid them.  Hire someone you trust and do your research on them and hire someone to watch them and the way they handle your money.

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Unirod,

Thanks for the reply... I will reach out to him with your request, and at the least; will have him reference the specific tax code, rule, regulation, and/or guideline that supports what he has explained to me regarding debt notes vs securities.

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Unirod,

Thanks for the reply... I will reach out to him with your request, and at the least; will have him reference the specific tax code, rule, regulation, and/or guideline that supports what he has explained to me regarding debt notes vs securities.

Thanks keep us up to date on this

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