Taxes when we exchange

[KristiD]

On 5/10/2018 at 12:12 PM, coorslite21 said:

Who really knows who this BobTheTaxMan is.........I wouldn't take any of this at face value.......just another wannabe guru who wants to see their worlds in print.......taken at face value.....

 

I actually know Bob the Tax Man.  His full name is Bob Adams and he's in Oregon.  When I got into CoolTrade (autotrader for stocks)  from Breitling, Bob started working with him to help us newbies get CoolTrade up and running.  He has a membership group called SimTradePro and it's still operating.  They no longer trade stocks with CoolTrade, but they are trading the forex.  I am not doing that myself though since I'm doing cryptos instead.  Many of Bob's SimTradPro people kept asking him for tax advice so he ended up bringing in some really good retirement account specialists.  He also always verifies his opinions with many other reputable CPAs.   So, SimTradePro, while focussed on forex investment, ending up also having a tax planning aspect as part of the program.  Bob knows that he's doing and I vouch for him 100% 

 

Bob is my age and his career was always as an accountant.  I've spoken to him many, many times and he is honest, intelligent, and genuinely cares about people.  He's humble enough that when he's not sure of the answer, he asks other professionals to double, triple check to make sure he always give the correct answer.  He would never say or consider himself guru.  The Dinar Guru site just finds some of his content valuable so they extract it and post snippits of it.  If you want to know more,  just listen to Bob's full audio  (from which this quote was taken) from the breitling currency blog - it was posted 5/9.  In it he explains at length why he is positve this will be taxed as ordinary income.  He explains that with the new 2018 tax law changes, the situation has changed.  He explains that he has also spoken to many, many other tax professionals and good financial planners and their tax advisors about this, and that for sure, these profits will be taxed as ordinary income.  I am sure that he is correct.  And don't forget, Adam also is adament that RV profits will be taxed as ordinary income.   If you listen to the whole thing, he fully explains what Floridian just posteod about - using charitable contributions as a future write off.  It's well worth listening to and it's only about 25 minutes in total.  I'll post the link but the mods seem to always remove it for some reason (it's funny, I have posted it many, many times in the post - but lately the mods don't allow it).  So if they do emove it, you can search for it and find it pretty easily.  http://breitlingcurrency.blogspot.com.

 

While we would all prefer that this be taxed as capital gains, that doesn't make it so.  And since I have no doubt that this will be taxed at the maximum rate (as ordinary income), I think it behooves everyone to plan accordingly.  Take it from some one who personally knows this man, he is absolutely and totally trustworthy.

[Luigi1]

2 hours ago, yendor said:

I am not a tax guy and haven't  spoken to one at this time, but I really won't plan on them taking  any less than around 50 %. If they take less than that I will be tickled pink..... and happy that this ride is finally over.

 

 

Under the current Trump tax plan...the highest bracket is 35%. Things could change by tax time.

[Floridian]

1 hour ago, KristiD said:

I actually know Bob the Tax Man.  His full name is Bob Adams and he's in Oregon.  When I got into CoolTrade (autotrader for stocks)  from Breitling, Bob started working with him to help us newbies get CoolTrade up and running.  He has a membership group called SimTradePro and it's still operating.  They no longer trade stocks with CoolTrade, but they are trading the forex.  I am not doing that myself though since I'm doing cryptos instead.  Many of Bob's SimTradPro people kept asking him for tax advice so he ended up bringing in some really good retirement account specialists.  He also always verifies his opinions with many other reputable CPAs.   So, SimTradePro, while focussed on forex investment, ending up also having a tax planning aspect as part of the program.  Bob knows that he's doing and I vouch for him 100% 

 

Bob is my age and his career was always as an accountant.  I've spoken to him many, many times and he is honest, intelligent, and genuinely cares about people.  He's humble enough that when he's not sure of the answer, he asks other professionals to double, triple check to make sure he always give the correct answer.  He would never say or consider himself guru.  The Dinar Guru site just finds some of his content valuable so they extract it and post snippits of it.  If you want to know more,  just listen to Bob's full audio  (from which this quote was taken) from the breitling currency blog - it was posted 5/9.  In it he explains at length why he is positve this will be taxed as ordinary income.  He explains that with the new 2018 tax law changes, the situation has changed.  He explains that he has also spoken to many, many other tax professionals and good financial planners and their tax advisors about this, and that for sure, these profits will be taxed as ordinary income.  I am sure that he is correct.  And don't forget, Adam also is adament that RV profits will be taxed as ordinary income.   If you listen to the whole thing, he fully explains what Floridian just posteod about - using charitable contributions as a future write off.  It's well worth listening to and it's only about 25 minutes in total.  I'll post the link but the mods seem to always remove it for some reason (it's funny, I have posted it many, many times in the post - but lately the mods don't allow it).  So if they do emove it, you can search for it and find it pretty easily.  http://breitlingcurrency.blogspot.com.

 

While we would all prefer that this be taxed as capital gains, that doesn't make it so.  And since I have no doubt that this will be taxed at the maximum rate (as ordinary income), I think it behooves everyone to plan accordingly.  Take it from some one who personally knows this man, he is absolutely and totally trustworthy.

 

Thanks, Kristi.  I will listen to it later on today.

It just doesn't make sense to me to buy something as an investment, hold it for many years, sell it, and then have it taxed as ordinary income.

No one will know for sure until the time comes, but I will listen to what Bob has to say.  😊

[coorslite21]

1 hour ago, KristiD said:

I actually know Bob the Tax Man.  His full name is Bob Adams and he's in Oregon.  When I got into CoolTrade (autotrader for stocks)  from Breitling, Bob started working with him to help us newbies get CoolTrade up and running.  He has a membership group called SimTradePro and it's still operating.  They no longer trade stocks with CoolTrade, but they are trading the forex.  I am not doing that myself though since I'm doing cryptos instead.  Many of Bob's SimTradPro people kept asking him for tax advice so he ended up bringing in some really good retirement account specialists.  He also always verifies his opinions with many other reputable CPAs.   So, SimTradePro, while focussed on forex investment, ending up also having a tax planning aspect as part of the program.  Bob knows that he's doing and I vouch for him 100% 

 

Bob is my age and his career was always as an accountant.  I've spoken to him many, many times and he is honest, intelligent, and genuinely cares about people.  He's humble enough that when he's not sure of the answer, he asks other professionals to double, triple check to make sure he always give the correct answer.  He would never say or consider himself guru.  The Dinar Guru site just finds some of his content valuable so they extract it and post snippits of it.  If you want to know more,  just listen to Bob's full audio  (from which this quote was taken) from the breitling currency blog - it was posted 5/9.  In it he explains at length why he is positve this will be taxed as ordinary income.  He explains that with the new 2018 tax law changes, the situation has changed.  He explains that he has also spoken to many, many other tax professionals and good financial planners and their tax advisors about this, and that for sure, these profits will be taxed as ordinary income.  I am sure that he is correct.  And don't forget, Adam also is adament that RV profits will be taxed as ordinary income.   If you listen to the whole thing, he fully explains what Floridian just posteod about - using charitable contributions as a future write off.  It's well worth listening to and it's only about 25 minutes in total.  I'll post the link but the mods seem to always remove it for some reason (it's funny, I have posted it many, many times in the post - but lately the mods don't allow it).  So if they do emove it, you can search for it and find it pretty easily.  http://breitlingcurrency.blogspot.com.

 

While we would all prefer that this be taxed as capital gains, that doesn't make it so.  And since I have no doubt that this will be taxed at the maximum rate (as ordinary income), I think it behooves everyone to plan accordingly.  Take it from some one who personally knows this man, he is absolutely and totally trustworthy.

Kristi, thanks for the education...your endorsement is all I need......sorry to Bob if I came across as snarky....my gut is still telling me this event won't be taxed....guess only time will tell.....enjoy your weekend!....CL

[Floridian]

14 minutes ago, coorslite21 said:

Kristi, thanks for the education...your endorsement is all I need......sorry to Bob if I came across as snarky....my gut is still telling me this event won't be taxed....guess only time will tell.....enjoy your weekend!....CL

 

Wont be taxed?  Man, that's a first!  I sure hope you're right.  😀

I never heard anyone say that before.

How did you come to this conclusion Coorslite21?

[Shedagal]

43 minutes ago, coorslite21 said:

Kristi, thanks for the education...your endorsement is all I need......sorry to Bob if I came across as snarky....my gut is still telling me this event won't be taxed....guess only time will tell.....enjoy your weekend!....CL

Wow, CL, that no tax prediction will certainly get our attention.  I, too, want to hear more about your gut feeling.  I can't imagine Uncle Sam failing to get every penny he can out of this event.  Thanks, also, to Kristi.  I am also a believer in Bob and have enjoyed his input and advice.

[Floridian]

Well, I did listen to the Podcast from Bob the Tax Man.

I still disagree with his conclusion that our gain will be taxed as Ordinary Income, even though he says he has spoken to many tax experts.

 

At around 6 minutes on the podcast, he says that we don't have a "contract" like Forex Traders.  Their gains are taxed at Capital Gains because of the contract.

My response is - When a person buy stocks and holds them for years, and then sells them, that is considered Long Term Capital Gains.  The person who buys the stocks does not have any sort of "contract" as the Forex Trader does.  I don't think we need a contract either, for our long term investment to be considered Long Term Capital Gains.

 

However, he is absolutely correct about donating dinars (instead of dollars) to charity.

He is also correct about funding a Roth IRA with dinars.
 

[coorslite21]

1 hour ago, Shedagal said:

Wow, CL, that no tax prediction will certainly get our attention.  I, too, want to hear more about your gut feeling.  I can't imagine Uncle Sam failing to get every penny he can out of this event.  Thanks, also, to Kristi.  I am also a believer in Bob and have enjoyed his input and advice.

 

Just a gut feeling......as posted earlier......don't believe banks can collect taxes........not legally.....so all of us would have to be responsible and hold some back for taxes.....I would imagine there would be a high number who would screw that up.........you know.......the windfall lottery curse.........so what is the USG supposed to do....put a million citizens in jail for tax evasion........let alone bankruptcies.

 

Additionally if this is taxed........which ever way they go...including rates...likely to be a high number of law suits saying the USG didn't get it right.........the cost would be a lot of time and money....

 

No doubt if the left was in control this would be taxes.......probably a windfall 90% tax..........because they would want to take our gains to use them for what they thought was best for us........they like to take care of us you know.......My guess is Tweeting Trump and his crew would let the people stimulate the economy by their own choice...

 

The USG is reported to have 4.5 Trillion IQD.........that would go along way towards helping correct the almost $21 Trillion USD debt......If you recall Clinton used that same concept when Kuwait regained the value of their currency......

 

Interest rates have been close to nothing for years......and with growth in the economy.......the USG will see additional tax revenue to offset and hopefully exceed the rising the increased cost of servicing the US debt.  It's a fine line.

 

If you can knock the debt down to 8-10 Trillion, and bump the growth up to 4% or better.......for a period of time.........

 

Well, it might just be a really good thing for everyone........

 

So much to all of this.....I hope I made my "gut" some what understandable............CL

[Floridian]

6 minutes ago, coorslite21 said:

 

Just a gut feeling......as posted earlier......don't believe banks can collect taxes........not legally.....so all of us would have to be responsible and hold some back for taxes.....I would imagine there would be a high number who would screw that up.........you know.......the windfall lottery curse.........so what is the USG supposed to do....put a million citizens in jail for tax evasion........let alone bankruptcies.

 

Additionally if this is taxed........which ever way they go...including rates...likely to be a high number of law suits saying the USG didn't get it right.........the cost would be a lot of time and money....

 

No doubt if the left was in control this would be taxes.......probably a windfall 90% tax..........because they would want to take our gains to use them for what they thought was best for us........they like to take care of us you know.......My guess is Tweeting Trump and his crew would let the people stimulate the economy by their own choice...

 

The USG is reported to have 4.5 Trillion IQD.........that would go along way towards helping correct the almost $21 Trillion USD debt......If you recall Clinton used that same concept when Kuwait regained the value of their currency......

 

Interest rates have been close to nothing for years......and with growth in the economy.......the USG will see additional tax revenue to offset and hopefully exceed the rising the increased cost of servicing the US debt.  It's a fine line.

 

If you can knock the debt down to 8-10 Trillion, and bump the growth up to 4% or better.......for a period of time.........

 

Well, it might just be a really good thing for everyone........

 

So much to all of this.....I hope I made my "gut" some what understandable............CL

 

Banks don't collect taxes, but they have to report to the government any transaction over $10,000.

Also, they will charge plenty of FEES for exchanging dinars for dollars.

[coorslite21]

1 hour ago, Floridian said:

 

Banks don't collect taxes, but they have to report to the government any transaction over $10,000.

Also, they will charge plenty of FEES for exchanging dinars for dollars.

 

You are correct..........Fees would be known as the "spread".......and that should be negotiable from bank to bank.........Banks will report........but they have no legal function to with-hold taxes.......Some domestic banks........in conjunction with the FATCA  laws............. have reduced that amount down to $6000 for reporting... on their own merit.......

[madness]

Ok as far as exchanges go, if it is short term meaning you owned it less than 1 year,  you could be taxed as ordinary income, that would be 39.6%  if you cash in I think like over 456,000 which will then put you in the highest tax bracket that equals 39.6% plus state taxes, ouch. Now if you have dinar for over a year, it will be taxed as long term capitol gains at a lower tax rate, got to see what this next years tax rate holds for us, " Make dam sure you keep all your receipts in case an IRS audit" this way you can prove you owned it for more than a year.  Im going at this 2 prong cause Im in CA, so that means not only I get jacked on short term on fed taxes, I get bent over by the state with no reach around and there using sand paper with no vaseline. couple things come to mind, if there is a contract rate oh hell cash in and take half so what, if not cause they say its a myth, then if you live in a high tax state you might consider just exchanging enough to sit back and figure out your options, like moving to a no tax state, wait a year especially if your short term gain, and then move, then cash in. IRS code 988 mainly is geared towards forex traders and you have to claim that, now IRS code 1256 I think you can claim 40% short term 60% long term, but that is an outdated code I might be reading so double check that. I was moving out of state anyway,  been in this short term, so its in my best interest to move, wait awhile and then turn in the rest. My theory is if im not getting the contract rate or there is not one at all, there is no rush at all. cash in $300,000 to move and wait out the short term clock, by then you never know it might go up in value. Im not a tax person, just went to HR block tax school and I studied light corporate tax law, but that was awhile ago, tax law are always changing year to year so, make sure you do your homework.. worst case and this is for the people that have any currency under a year like me, best to just cash in what you need and wait till your year is up and then cash in for long term gains tax. good luck.

[Theseus]

2018 Tax brackets

Rate	Individuals	Married Filing Jointly
10%	Up to $9,525	Up to $19,050
12%	$9,526 to $38,700	$19,051 to $77,400
22%	38,701 to $82,500	$77,401 to $165,000
24%	$82,501 to $157,500	$165,001 to $315,000
32%	$157,501 to $200,000	$315,001 to $400,000
35%	$200,001 to $500,000	$400,001 to $600,000
37%	over $500,000	over $600,000

 

 

Just to let you know 3% per million saved is $30,000 of money in your pocket. 3% of 10,000,000 is $300,000 which is a good chunk of change towards the down payment of a new mansion. LOL. Add up 37% plus state and local taxes (county and city, if taxed at those levels) for income and you have your best guestimate for a tax rate. This does not include deductibles nor credits, should those come into play (like donations to qualified charities etc.) BTW I qualify myself as a charity, although your donations will not be tax-deductible. God gives willingly so I take willingly. (Just joking or am I? bwahahaha)

[Floridian]

10 minutes ago, Theseus said:

2018 Tax brackets

Rate	Individuals	Married Filing Jointly
10%	Up to $9,525	Up to $19,050
12%	$9,526 to $38,700	$19,051 to $77,400
22%	38,701 to $82,500	$77,401 to $165,000
24%	$82,501 to $157,500	$165,001 to $315,000
32%	$157,501 to $200,000	$315,001 to $400,000
35%	$200,001 to $500,000	$400,001 to $600,000
37%	over $500,000	over $600,000

 

 

Just to let you know 3% per million saved is $30,000 of money in your pocket. 3% of 10,000,000 is $300,000 which is a good chunk of change towards the down payment of a new mansion. LOL. Add up 37% plus state and local taxes (county and city, if taxed at those levels) for income and you have your best guestimate for a tax rate. This does not include deductibles nor credits, should those come into play (like donations to qualified charities etc.) BTW I qualify myself as a charity, although your donations will not be tax-deductible. God gives willingly so I take willingly. (Just joking or am I? bwahahaha)

 

Thanks, Thesus.

 

Above is if it's taxed at ordinary income, which I hope it's not.

Also, don't forget the bank fees/spread, which could be another 10% to 12%.  I think the bank fees will be high because the US Treasury takes a bite out of bank fees.

 

So, if we are taxed at Ordinary Income rates and include the bank fees, we can count on clearing only HALF of whatever rate the dinar comes out at.

 

 

Edited May 12, 2018 by Floridian

[Theseus]

32 minutes ago, madness said:

... Im in CA...

1

Why? and Why? I wouldn't even cash in 300,000 to move out of that state (which I have stayed away from since the big one of 88). I wouldn't even to the NE, or Illinoise (for being no noise in Illinois they certainly cause an awfully loud ruckus). Look at your no income tax states, put your stuff in storage (or throw it all out, your choice), find an apartment, move there get a DL and a couple of utility bills mailed to you, change your voter reg and voila! You are now a resident of another state. Once residency status is official (varies by state), then implement your cash out plan. No need to get Frisco'd by CA on your derriere. As once was ever a wise man who said, Run Forest, run! And so I ran.

[Theseus]

1 minute ago, Floridian said:

 

Thanks, Thesus.

 

Above is if it's taxed at ordinary income, which I hope it's not.

Also, don't forget the bank fees/spread, which could be another 10% to 12%.  I think the bank fees will be high because the US Treasury takes a bite out of bank fees.

 

So, if we are taxed at Ordinary Income rates and include the bank fees, we can count on clearing only HALF of whatever rate the dinar comes out at.

 

 

1

And thus I said "tax rate". Whatever else you want to add to that tax rate is a personal choice. If you pay more than 3 to 5% on the exchange rate, you are getting Frisco'd on your derriere. If you apply the crisco they will come.

[Floridian]

Just now, Theseus said:

And thus I said "tax rate". Whatever else you want to add to that tax rate is a personal choice. If you pay more than 3 to 5% on the exchange rate, you are getting Frisco'd on your derriere. If you apply the crisco they will come.

 

What do you suggest, besides going around to different banks and asking the charges?

 

[Theseus]

2 minutes ago, Floridian said:

 

What do you suggest, besides going around to different banks and asking the charges?

 

I suggest getting a lifetime membership to Adam's VIP club.

 

Ask and ye shall receive.

Edited May 12, 2018 by Theseus

[Floridian]

Just now, Theseus said:

I suggest getting a lifetime membership to Adam's VIP club.

 

Good idea, but can't afford it at the present time.

[Theseus]

1 minute ago, Floridian said:

 

Good idea, but can't afford it at the present time.

If there is a will there is a way.

[Floridian]

5 minutes ago, Theseus said:

If there is a will there is a way.

 

Maybe for most, but some of us are "hanging by a thread".

[Shedagal]

45 minutes ago, Floridian said:

 

Maybe for most, but some of us are "hanging by a thread".

Floridian, believe me when i say i have known what that is like.  Let me say, however, if i was planning to cash out at RV and not use Adam's OSI, i would definitely want to be in VIP.  Not only does it give you a discount on the spread, but Adam will have a list of financial experts in your area who you can meet with.  I would expect since Adam has already connected with them that they will be informed on dinar and exchange procedures.  That gives us a heads up rather than going to someone that is initially clueless.  I think Adam is still offering 3 month memberships.

[Floridian]

29 minutes ago, Shedagal said:

Floridian, believe me when i say i have known what that is like.  Let me say, however, if i was planning to cash out at RV and not use Adam's OSI, i would definitely want to be in VIP.  Not only does it give you a discount on the spread, but Adam will have a list of financial experts in your area who you can meet with.  I would expect since Adam has already connected with them that they will be informed on dinar and exchange procedures.  That gives us a heads up rather than going to someone that is initially clueless.  I think Adam is still offering 3 month memberships.

 

Thank you, Shedagal.

I emailed support to inquire about the price.

[Theseus]

1 hour ago, Floridian said:

 

Thank you, Shedagal.

I emailed support system">support to inquire about the price.

Under the store tab at the top of this page you shall find what you seek or just click here

http://dinarvets.com/forums/index.php?/store/category/1-vip-membership-packages/

 

Prices listed for one and for all

 

Edited May 12, 2018 by Theseus

[coorslite21]

The spread on most currency exchanges at this time is 2%....but you never know what they may charge for a IQD to any other currency rate...

[Floridian]

17 minutes ago, Theseus said:

Under the store tab at the top of this page you shall find what you seek or just click here

http://dinarvets.com/forums/index.php?/store/category/1-vip-membership-packages/

 

Prices listed for one and for all

 

 

Thanks, Theseus.  I just clicked on the link.

Do you have to pay monthly also?

If so, how much?

Edited May 12, 2018 by Floridian