Spoke to my CPA today

[silo123]

So the feedback I got on foreign currency was that if it is not in a foreign account or forex I dont pay capital gains on it...she will ask other CPA on their views. She did say is that IRS does not audit the Schedule D.

Trivial

[markst]

So the feedback I got on foreign currency was that if it is not in a foreign account or forex I dont pay capital gains on it...she will ask other CPA on their views. She did say is that IRS does not audit the Schedule D.

Trivial

Please keep us informed.. Thanks..

[truckerron49]

Please keep us informed.. Thanks..

Sounds good so far. Please keep us up to date when she responds to you next.. Thanks for posting too.......

[Bigboy0854]

So the feedback I got on foreign currency was that if it is not in a foreign account or forex I dont pay capital gains on it...she will ask other CPA on their views. She did say is that IRS does not audit the Schedule D.

Trivial

I am a CPA. I woud be very careful when receiving advice from someone who says the IRS does not audit a specific schedule. This is bad information.

You are responsible for taxes (and penalties). Pay the taxes and sleep well at night.

[silo123]

I am a CPA. I woud be very careful when receiving advice from someone who says the IRS does not audit a specific schedule. This is bad information.

You are responsible for taxes (and penalties). Pay the taxes and sleep well at night.

I agree...planned on paying taxes...since you are a CPA what are you going to do?

[SuperFlyJr]

I agree...planned on paying taxes...since you are a CPA what are you going to do?

Good question!

[darkstar]

Notice that this is where the "tax professional" gets quiet!!! .......crickets .............crickets...............crickets!

I'll tell you what this tax professional is going to do! I won't be paying any Federal Income Tax on the IQD conversion.

Why?

Because I am a "nonresident alien" not engaged in a "trade or business." The IQD constitutes a "foreign estate" under 26 USC 7701(a)(31), and does not constitute Gross Income under 26 USC 61. No Gross income, means no Adjusted Gross Income, means no taxable income!

Are there any "tax professionals" out there that believe that a "foreign estate" defined in 7701(a)(31) is taxable under the IRC?

[powerpager]

I Love Schedule CCCCCCCCCCCCCCCC

[silo123]

Notice that this is where the "tax professional" gets quiet!!! .......crickets .............crickets...............crickets!

I'll tell you what this tax professional is going to do! I won't be paying any Federal Income Tax on the IQD conversion.

Why?

Because I am a "nonresident alien" not engaged in a "trade or business." The IQD constitutes a "foreign estate" under 26 USC 7701(a)(31), and does not constitute Gross Income under 26 USC 61. No Gross income, means no Adjusted Gross Income, means no taxable income!

Are there any "tax professionals" out there that believe that a "foreign estate" defined in 7701(a)(31) is taxable under the IRC?

Can you post the source

[darkstar]

USC stands for United States Code. Title 26 is the Internal Revenue Code.

http://www.gpoaccess.gov/uscode/browse.html

[luckylucy]

USC stands for United States Code. Title 26 is the Internal Revenue Code.

http://www.gpoaccess.gov/uscode/browse.html

Is this what you are referencing?

from 26 USC 7701

(30) United States person The term ''United States person'' means - (A) a citizen or resident of the United States, ( a domestic partnership, © a domestic corporation, (D) any estate (other than a foreign estate, within the meaning of paragraph (31)), and (E) any trust if - (i) a court within the United States is able to exercise primary supervision over the administration of the trust, and (ii) one or more United States persons have the authority to control all substantial decisions of the trust. (31) Foreign estate or trust (A) Foreign estate The term ''foreign estate'' means an estate the income of which, from sources without the United States which is not effectively connected with the conduct of a trade or business within the United States, is not includible in gross income under subtitle A. ( Foreign trust The term ''foreign trust'' means any trust other than a trust described in subparagraph (E) of paragraph (30).

Read more: http://vlex.com/vid/sec-definitions-19209627#ixzz0oTLUFQ7v

Further in that same code is definition of nonresident alien ... is this what you mean?

from 26 USC 7701 ... definition of nonresident alien

( Definition of resident alien and nonresident alien (1) In general For purposes of this title (other than subtitle - (A) Resident alien An alien individual shall be treated as a resident of the United States with respect to any calendar year if (and only if) such individual meets the requirements of clause (i), (ii), or (iii): (i) Lawfully admitted for permanent residence Such individual is a lawful permanent resident of the United States at any time during such calendar year. (ii) Substantial presence test Such individual meets the substantial presence test of paragraph (3). (iii) First year election Such individual makes the election provided in paragraph (4). ( Nonresident alien An individual is a nonresident alien if such individual is neither a citizen of the United States nor a resident of the United States (within the meaning of subparagraph (A)).

Read more: http://vlex.com/vid/sec-definitions-19209627#ixzz0oTMTuGDR

[Jigga]

Notice that this is where the "tax professional" gets quiet!!! .......crickets .............crickets...............crickets!

I'll tell you what this tax professional is going to do! I won't be paying any Federal Income Tax on the IQD conversion.

Why?

Because I am a "nonresident alien" not engaged in a "trade or business." The IQD constitutes a "foreign estate" under 26 USC 7701(a)(31), and does not constitute Gross Income under 26 USC 61. No Gross income, means no Adjusted Gross Income, means no taxable income!

Are there any "tax professionals" out there that believe that a "foreign estate" defined in 7701(a)(31) is taxable under the IRC?

I cant provide you with links but I think you need to investigate further before making your decision....Ive found that currency exchange falls under short term capital gains (no matter how long you have held the money) and any profit over 200 dollars you have to claim and pay taxes on....but feel free to not pay....i think you will regret it though....BIG TIME....

[darkstar]

Jigga,

Currency exchange for an increase in net aggregate wealth DOES constitute a capital gain ...... IF ...... it is accrued in the course of a "trade or business." If it is not, then it is NOT a capital gain.

You see, you have been led to believe that the exchange of the currency itself is the "trade or business" when it is not. The currency exchange is just that .... a currency exchange. But if it is done IN THE COURSE of a "trade or business," then it is taxable because the "trade or business" is the excise taxable activity. The term "trade or business" is defined as the performance of the functions of public office. If a Congressman uses public money, and trades currency for profit, then there is a capital gain. Why? Because he did this in the course of his "trade or business," (public office). If the Congressman uses his own money in a private-sector capacity, and he is domiciled in a Union state (which they all are), then he is a "nonresident alien" for the purposes of the tax, and the currency trade is NOT "effectively connected with the conduct of a trade or business within the United States." It is therefore NOT taxable.

Let me give you a more colorful analogy:

Intercourse with my wife can mean different things for different people.

1. If I have intercourse with my wife, there is no problem. Comparison: "nonresident alien" not engaged in a "trade or business."

2. If you or anyone else has intercourse with my wife, it is rape. Her consent not withhstanding. Comparison" "U.S. person" PRESUMED to be engaged in a "trade or business" by virtue of the presence of a SSN/ITIN in association with said activity.

Do you see the difference? The activity is the same -- intercourse with my wife. But it depends who does it, and why. The ramifications of which have very different outcomes.

The same thing goes for the currency trade. 99.99% believe that the currency trade itself is a taxable activity. It is NOT!! However, if the exchange is done in the course of a "trade or business," it becomes a taxable capital gain.

Go ahead and ask yourself this question: Why would they define the term "trade or business" to include the performance of the functions of public office?

Do you think that 99.9% of Americans think that exchanging currency, building houses, tossing pizza dough, or fixing cars constitutes a "trade or business?" Of course they do? What's more ...... 99.9% of Americans proudly (yet ignorantly) proclaim they are a "citizen" of the "United States" for the purposes of the Federal Income Tax. This proclamation MANDATES the use of the SSN/ITIN, which then imports the PRESUMPTION that you are engaged in a "trade or business." The "trade or business" is taxable gain accrued from activity as an officer/"employee" of the "United States" (Government). However, 99.9% have no idea that the tax is an indirect excise, and think it is therefore a tax on whatever money they earn in the course of their God-given, blessed, American life.

Folks ..... wake up!!! I cannot present this too you any more clearly! It's straight-forward, but many of you refuse to recognize how the whole system works to encumber you into its jaws!!!

Edited May 20, 2010 by darkstar

[wowjam]

I've glad to see you posting again Darkstar. Thank you for enlightening us with your knowledge and experience. A lot of what you say, i understand, BUT if i were to follow your advice and get into trouble with the IRS or the government, who then would i turn to help bail me out? I'm being absolutely serious.

I will stand for what is declare in the constitution MY GOD GIVEN RIGHTS. I will choose to FIGHT, but where would i go to get the people with the knowledge you have to back me up? Will you come to rescue? Again thanks for shedding your light on this tax issue.

wowjam

Jigga,

Currency exchange for an increase in net aggregate wealth DOES constitute a capital gain ...... IF ...... it is accrued in the course of a "trade or business." If it is not, then it is NOT a capital gain.

You see, you have been led to believe that the exchange of the currency itself is the "trade or business" when it is not. The currency exchange is just that .... a currency exchange. But if it is done IN THE COURSE of a "trade or business," then it is taxable because the "trade or business" is the excise taxable activity. The term "trade or business" is defined as the performance of the functions of public office. If a Congressman uses public money, and trades currency for profit, then there is a capital gain. Why? Because he did this in the course of his "trade or business," (public office). If the Congressman uses his own money in a private-sector capacity, and he is domiciled in a Union state (which they all are), then he is a "nonresident alien" for the purposes of the tax, and the currency trade is NOT "effectively connected with the conduct of a trade or business within the United States." It is therefore NOT taxable.

Let me give you a more colorful analogy:

Intercourse with my wife can mean different things for different people.

1. If I have intercourse with my wife, there is no problem. Comparison: "nonresident alien" not engaged in a "trade or business."

2. If you or anyone else has intercourse with my wife, it is rape. Her consent not withhstanding. Comparison" "U.S. person" PRESUMED to be engaged in a "trade or business" by virtue of the presence of a SSN/ITIN in association with said activity.

Do you see the difference? The activity is the same -- intercourse with my wife. But it depends who does it, and why. The ramifications of which have very different outcomes.

The same thing goes for the currency trade. 99.99% believe that the currency trade itself is a taxable activity. It is NOT!! However, if the exchange is done in the course of a "trade or business," it becomes a taxable capital gain.

Go ahead and ask yourself this question: Why would they define the term "trade or business" to include the performance of the functions of public office?

Do you think that 99.9% of Americans think that exchanging currency, building houses, tossing pizza dough, or fixing cars constitutes a "trade or business?" Of course they do? What's more ...... 99.9% of Americans proudly (yet ignorantly) proclaim they are a "citizen" of the "United States" for the purposes of the Federal Income Tax. This proclamation MANDATES the use of the SSN/ITIN, which then imports the PRESUMPTION that you are engaged in a "trade or business." The "trade or business" is taxable gain accrued from activity as an officer/"employee" of the "United States" (Government). However, 99.9% have no idea that the tax is an indirect excise, and think it is therefore a tax on whatever money they earn in the course of their God-given, blessed, American life.

Folks ..... wake up!!! I cannot present this too you any more clearly! It's straight-forward, but many of you refuse to recognize how the whole system works to encumber you into its jaws!!!

[keepmwlknfny]

And to all of you that wont be paying your taxes because of this hearsay please dont call me to bail you out hahaha ya dig?!?! I have also heard what Jigga has from many sources.....that in fact currency exchange for any profit over 200 dollars you have to claim on taxes as added income....a measley what 15%?? ill gladly pay that off of what I make from this in order to stay off the radar of the IRS.....just my simple opinion.....

[Mrddark]

I cant provide you with links but I think you need to investigate further before making your decision....Ive found that currency exchange falls under short term capital gains (no matter how long you have held the money) and any profit over 200 dollars you have to claim and pay taxes on....but feel free to not pay....i think you will regret it though....BIG TIME....

Is there anyone that can provide a link that states that currency exchange falls under short term capital gains know matter how long you have had it ?

[mythunter]

I talked to the IRS yesterday for my 2009 taxes. We specifically talked about schedule D regarding capital gains and losses. I have losses related to property losses. The lady at the IRS specifically told me that the IRS is looking into capital gains and losses more closely now so people cannot ever state them. Check with your accountant before cashing in because you uncle sam.........urrrrrr.........I mean your uncle Obama want his share of your loot. LOL

[abonnie]

A great discussion — thanks to mythunter for intiating — & darkstar for knowing who he is!!!

The CRUX of the matter goes beyond depending upon someone else to bail us out of trouble — like a lawyer — or to keep us out of trouble — like a cpa.

When a living being knows who they are — they do not need the above. Until then, stay within the only guidelines that the consensus says IS the Reality you have agreed to be a part of.

Not to forget though — our ultimate spiritual/moral Obligation is to continue to EXPLORE & LEARN who we are and how that shifts our relationship to that very same consensus reality.

Here's what K98knights has to offer in Lesson 2 of a 6-Minute Management course:

Lesson 2:

A priest offered a Nun a lift..

She got in and crossed her legs, forcing her gown to reveal a leg.

The priest nearly had an accident. After controlling the car, he stealthily slid his hand up her leg.

The nun said, 'Father, remember Psalm 129?'

The priest removed his hand But, changing gears, he let his hand slide up her leg again. The nun once again said, 'Father, remember Psalm 129?'

The priest apologized 'Sorry sister but the flesh is weak.'

Arriving at the convent, the nun sighed heavily and went on her way.

On his arrival at the church, the priest rushed to look up Psalm 129.

It said, 'Go forth and seek, further up, you will find glory.'

Moral of the story:

If you are not well informed in your job, you might miss a great opportunity.

[Dogmatic1]

And to all of you that wont be paying your taxes because of this hearsay please dont call me to bail you out hahaha ya dig?!?! I have also heard what Jigga has from many sources.....that in fact currency exchange for any profit over 200 dollars you have to claim on taxes as added income....a measley what 15%?? ill gladly pay that off of what I make from this in order to stay off the radar of the IRS.....just my simple opinion.....

This is so funny, that you would back-up, Jigga, since some of us know that "JIGGA" and "KEEPMWLKNFNY" are the SAME PEOPLE!!!! Buahhhh ha ha ha ha!

Who would have thunk to invent different names, to use in cases like these. That's pretty smart, but also a bit schizophrenic!!! - you psycho!!!! (Just playing around, I think)

[lost one]

I'm with you on this, I have stated this before but nobody took notice. 15% is fine by me. the least I can do for the country.

--------------------------------------------------------------------------------

#15 keepmwlknfny

Junior Member

Group: Members Posts: 118 Joined: 04-March 10 Posted 06 June 2010 - 10:45 PM

And to all of you that wont be paying your taxes because of this hearsay please dont call me to bail you out hahaha ya dig?!?! I have also heard what Jigga has from many sources.....that in fact currency exchange for any profit over 200 dollars you have to claim on taxes as added income....a measley what 15%?? ill gladly pay that off of what I make from this in order to stay off the radar of the IRS.....just my simple opinion.....

Read more:

[keepmwlknfny]

This is so funny, that you would back-up, Jigga, since some of us know that "JIGGA" and "KEEPMWLKNFNY" are the SAME PEOPLE!!!! Buahhhh ha ha ha ha!

Who would have thunk to invent different names, to use in cases like these. That's pretty smart, but also a bit schizophrenic!!! - you psycho!!!! (Just playing around, I think)

hahaha it was funny thats why i said that....and jigga died....he got kicked so keepmwlknfny is the reincarnation of jigga but they both share the same views hahaha