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1 minute ago, Adam Montana said:

 

Ok I thought I'd seen your name in there before! 

 

Best of health and wishes to you, friend. 

 

:hug:

Thank you Adam! And to you too! .and GO RVVVV! 😀

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18 minutes ago, Adam Montana said:

 

Ok I thought I'd seen your name in there before! 

 

Best of health and wishes to you, friend. 

 

:hug:

Hoping we have the RV REALLY soon now!  :rodeo::moneybag::twothumbs:

Edited by DFlat7
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I thought I'd add a few comments to consider regarding taxes and diversification given the massive debt loads.

 

Going to the bank and exchanging a $100 bill for 5 $20 bills is not a taxable event.

After the RV could we go to the exchange and convert a 25000 Dinar note  for 250 100 dinar notes, again not a taxable event.

 

Why do we expect an RV -- because the Dinar has hard assets (oil, minerals/metals) backing it.

Therefore holding Dinar will possibly be a good diversification.

 

Another idea - buy gold miners stocks -- assuming the company is viable, the value remains regardless of what currency is supreme.

An added bonus is the stocks usually go up exponentially in regards to the gold prices.

 

Some ideas to stir the pot

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12 hours ago, RV-2-Day said:

Going to the bank and exchanging a $100 bill for 5 $20 bills is not a taxable event.

After the RV could we go to the exchange and convert a 25000 Dinar note  for 250 100 dinar notes, again not a taxable event.

 

 

Since we're stirring the pot... converting a $100 bill to 5 $20 bills is not a taxable event, you are correct.

 

If there is an RV at 1:1, a 25,000 dinar note would be worth $25,000 - and that cash transaction may trigger a reportable event.

 

This isn't necessarily a bad thing, just something to be aware of.

 

Or it might be a bad thing. Depends on how "lucky" you are.

 

:twocents: 

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On 2/9/2019 at 12:33 PM, coorslite21 said:

 

I believe the $$$  in the current situation is in some danger.........there are so many factors.....positive and negative......right now in the area of World finance.....

 

The World debt is very concerning........US debt included......

 

One day they woke up in Iceland.....one day they woke up in Cyprus........things had changed........I know.......that stuff can't happen in America......can't it?

 

Many triggers out there that might topple the house of cards...everywhere........Yellow Vests in France want to create a bank run.....  Deutsche Bank is insolvent for all practical purposes......China is in a huge housing bubble.........GE........once a massive worldwide entity has a net value of negative $31 Billion.....and that involves a great many financial sectors.......

 

There are so many......

 

So........diversify.......that's what I was suggesting.....CL

I mentioned Deutsche Bank as a potential melt down trigger....

 

 

CL

 

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So it seems to me the closer we get, the more rumors are flying and convoluting the situation ( indeed , turning this into a headache).We have all by now heard the arguments on both sides of the coin , either it being tax on general income or Capital gains. Lately I have been hearing a few additional details that will clearly make it a case by case process. Examples such as capital gains only applying to those who do foreign currencies as their occupation versus the occasional note holder. I've also heard if you are employed elsewhere and just happen to have dinar that would make it a different deal , those who got dinar not being employed and working something more traditional wont be subject to taxes as its supposed to be a non taxable event .General Incomes argument is you would pay more accordingly , than you would on capital gains, but if they change the tax code in three years or less after exchange , you could file an amendment and be due a refund, versus if you pay on capital gains, you could end up owing more. Its been going around also that Trump is working to get rid of the capital gains this year. Just heard a bit ago that some believe there will be an up to ten percent exchange fee outside of the bank spread we are already aware of ,but I've not heard of a exchange fee outside of the spread before... I do not plan to exchange the second this event goes off as I plan to wait and see details emerge from others who do to have a clearer picture. I have even thought I would simply call the IRS and say look , this is what I have in totality for exchange and want to know how much if any do I need to pay , so you will leave the rest alone so I can go sit on the beach in the Bahamas and not have to hear from you anymore .. Lord help us , we're in for a ride when this blows.

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12 hours ago, js214 said:

Examples such as capital gains only applying to those who do foreign currencies as their occupation versus the occasional note holder.

I encourage you to at least look at some of the other threads here at DV - and you can start with reading the first 3 pages of this one.  I also thought we would be paying Ordinary Income taxes on our RV gains until I read comments made by xtaxguy.  He was a high caliber CPA who dealt specifically with gains from currency exchanges as a result of rate fluctuations.  I encourage anyone who is planning on paying US taxes after the RV - to read what he has to say about this topic.  Six months ago I did just that and it started me digging into this for myself.  I have 2 degrees in finance, so although I am not a licensed tax professional, I have some confidence in my ability to understand this stuff.  I came to the conclusion that the tax code is just not clear about this RV sitution.  (And as I recall, even Adam agreed with that.)  That's why some CPAs believe it will be Cap Gains, and others are just as sure it's Ordinary Income.  But this ex tax man spoke about people holding their dinar as an investment, which means it should be taxed as Cap Gains.  So I went and researched what the IRS said about investments and this is what I found:

Topic Number 409 - Capital Gains and Losses   https://www.irs.gov/taxtopics/tc409 

Almost everything you own and use for personal or investment purposes is a capital asset. Examples include a home, personal-use items like household furnishings, and stocks or bonds held as investments. When you sell a capital asset, the difference between the adjusted basis in the asset and the amount you realized from the sale is a capital gain or a capital loss. Generally, an asset's basis is its cost to the owner, but if you received the asset as a gift or inheritance, refer to Topic No. 703 for information about your basis. For information on calculating adjusted basis, refer to Publication 551, Basis of Assets. You have a capital gain if you sell the asset for more than your adjusted basis. You have a capital loss if you sell the asset for less than your adjusted basis. Losses from the sale of personal-use property, such as your home or car, aren't tax deductible.

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

So in the end, I decided that, since even tax professionals cannot come to a consensus on what the tax code says about how to treat gains from the RV, along with the fact that I know - and can document with emails (and a heck of a lot of posts and comments here at DV!), that I bought and held dinar as an investment with the intent to make money from it, that I'm personally going to claim it as Cap Gains.  Now that's just me and since I'm not a tax professionall, you (and everyone) need to decide this for yourself.  But I encourage you (and everyone) to at least read the other posts and what xtaxguy has to say has to say about taxes.  Then you can make your own well-informed decision after having reviewed a lot of good information on the subject. The safest, most conservative thing to do is pay Ordinary Income tax on it, and when the IRS finally issues a specific ruling about this situation (which they likely will be forced to do), if they rule it's Cap Gains, you can ammend your return and ask for a refund.  I'm a bit of a risk taker and I also feel that since the tax code is so ambiguous about this situation that not even tax professionals know which way to go, that even if the IRS later rules it should be Ordinary Income, they will be hard pressed to try and charge late fees and penalties to those of us who only paid Cap Gains since they were the one who couldn't clearly define how to tax these gains in the first place. 

jmho - but knowledge is power and there's a lot of free knowledge available here!  

 

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Also if it helps you can request a IRS ruling or statement from them after this happens and then you will have it in writing before you file your taxes. I think that costs around 1K to get and I don’t remember the exact name of it but i know of someone that said that’s exactly what they are going to do.

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2 hours ago, Dinarrock said:

Also if it helps you can request a IRS ruling or statement from them after this happens and then you will have it in writing before you file your taxes. I think that costs around 1K to get and I don’t remember the exact name of it but i know of someone that said that’s exactly what they are going to do.

This is probably what I will end up doing .Having it in writing seems the best way to go to move forward 

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6 hours ago, KristiD said:

I came to the conclusion that the tax code is just not clear about this RV sitution.  (And as I recall, even Adam agreed with that.)  That's why some CPAs believe it will be Cap Gains, and others are just as sure it's Ordinary Income. 

 

I do still agree with that, and there's only one way that's going to change - if/when the IRS gets around to clarifying it, as it relates specifically to the Dinar/this situation.

 

Unfortunately, they can clarify it pretty quickly... certainly in the same tax year as the RV is announced, and I'm betting it won't be in our favor.

 

If at all possible, I would love to claim Cap gains. The unfortunate reality is that we may not have that option, especially after the rules are changed retroactively on us.

 

I am hoping for the best but prepared and protected against the worst in regards to taxation.

 

:twocents: 

 

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13 hours ago, peace1221 said:

If I understand properly, that is what the OSI will help us with in terms of us keeping more of our funds. Am I correct?

 

Absolutely :twothumbs:

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Canada has similar tax rules as the usa but we have a windfall which means we are not taxed on any lottery wins and other such things.

I was wondering why the Kuwait situation cannot be applied in this case.

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The best by far is a offshore trust, with a offshore LLC managaing your trust..cook island trust is best by far.with an LLC in another offshore country...you can also set up branch offices o shire in states like Nevada that offer other benefits..or you stay completely offshore...shell companies and foundations are also great..

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The term “shell company” carries some questionable attributes.

 

We discuss this kind of topic in much more detail in VIP, but I’ll chime in briefly here because I just had a red flag pop up when reading that post. 

 

As as far as the US, Canada, and most other countries following similar laws go, a Trust and an IBC are interchangeable for tax purposes. The key is making sure the Entity is outside the jurisdiction of the government that would impose taxes, in a manner that is legal and easy to maintain. 

 

It it is VERY important that taxes be paid when they are due, to the full extent that they are due. One of the most valuable parts of VIP here is the education and information that helps our members know their role and understand their liabilities... that education, in addition to little things like never using the term “shell company”, is what will keep them safe and protected not only at RV time but for years and decades to come. 

 

:twocents: 

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