Adam Montana Weekly 12 July 2020

[Adam Montana]

Slight correction - EO 13303 gives US citizens the "right" to invest in things Iraqi, so it is at least partially "documented".

 

But there is no way we can reasonably expect the majority of those who missed out to "just be happy for us". 

 

They will come with their hands out. The government will come with their hands out. 

 

Luckily for some of us, there are options. VIP is a start, and OSI is an incredibly powerful and diverse way to protect yourself from those hands that will be digging in your wallet.

 

 

[keylime]

10 minutes ago, Adam Montana said:

 

Nobody cares how long we have been invested. Our "investment" is not registered or legislated or protected, and the voting public (most of whom will not benefit unless we get taxed), will not care about us.

 

The general public will see it as an overnight event.

I thought it was legislated so that we could buy and sell dinar. Isn't that what had to be reapproved by President Trump this year. I forget what the particular law is that allows us to invest in Iraq.

Oh. Just saw your post right above. Which is what I was referring to.

[olivesman]

49 minutes ago, Adam Montana said:

Slight correction - EO 13303 gives US citizens the "right" to invest in things Iraqi, so it is at least partially "documented".

 

But there is no way we can reasonably expect the majority of those who missed out to "just be happy for us". 

 

They will come with their hands out. The government will come with their hands out. 

 

Luckily for some of us, there are options. VIP!" rel="">VIP is a start, and OSI is an incredibly powerful and diverse way to protect yourself from those hands that will be digging in your wallet.

 

 

 

44 minutes ago, keylime said:

I thought it was legislated so that we could buy and sell dinar. Isn't that what had to be reapproved by President Trump this year. I forget what the particular law is that allows us to invest in Iraq.

Oh. Just saw your post right above. Which is what I was referring to.

THE MAN answered your question as you typed.  😄

 

This all reminds me of the musician that has "overnight success" but practiced for years.

[Adam Montana]

14 hours ago, KristiD said:

if your dinar ended up being worth, say, US$10 million after the RV, you could actually gift half of it to a charity and get a US$5 million write off on the other half you cash in for yourself.

 

Great post KristiD! 

 

One clarification on this part, because a lot of people misunderstand it. Charitable contributions don't work as generously as that in most cases. The deduction actually applies to your taxable income, not your tax liability.

 

It's still beneficial to use the deduction, if you choose to give to charity. Here's an example of how it works (this isn't the place to get too deep into tax rules) - I'm using head of household for simplicity.

 

 

Giving $5 million to charity didn't reduce our taxes by 5 million - it reduced our taxable income by 5 million.

 

 

[Floridian]

4 hours ago, Adam Montana said:

 

Nobody cares how long we have been invested. Our "investment" is not registered or legislated or protected, and the voting public (most of whom will not benefit unless we get taxed), will not care about us.

 

The general public will see it as an overnight event.

 

Thank you, Adam.

I'm sure we will get taxed on our gain, but what I was thinking is more along the lines of Capital Gains (long or short), not Windfall.

[KristiD]

17 hours ago, Rochester said:

Great comment. Thanks. Very interesting read. Much of what you wrote I have thought about, in the past. I think along similar lines, a lot of the time. Maybe you are my sister. Maybe we were separated at birth.....lol...j/k

 

Well, we DO have a connection.  I traveled to Alberta (Edmonton) to buy my horse who is the light of my eye, so I definitely feel a connection to Alberta!!

 

[BigJake]

On 7/12/2020 at 9:28 AM, Adam Montana said:

 

I agree with a few of the speculations above. I think the Iraqi Dinar should have a higher value, and I think we are simply waiting on the HCL

Is 

[BigJake]

On 7/12/2020 at 9:28 AM, Adam Montana said:

 

I agree with a few of the speculations above. I think the Iraqi Dinar should have a higher value, and I think we are simply waiting on the HCL

Is there a way to cash in a small amount of dinars And take the larger bills and exchange them for smaller bills? And if so would there be a spread on that?

[Rmc10]

If it's a .10 RV I'm not going to have enough for anyone to want to take any from me lol. I will be happy with it but now if it goes 1 to 1 ya I won't have to ever work again. 

[KristiD]

3 hours ago, Adam Montana said:

The deduction actually applies to your taxable income, not your tax liability.

 

Yes, I realize that, but this year you are allowed to deduct charitible contributions of up to 100% of your taxable income, i.e., your adjusted gross income!  (And according to Bob if you give more than that, you can even carry the ununsed deduction forward 5 years!!!)   It's part of the Covid CARES Act and there are a few requirements which I explain below.  Trump wanted to help charities who are obviously hit very hard with so many millions of people being out of work, so they raised the previous charity deductions limit of 60% all to way to 100%!!  This article from Forbes explains it, CARES Act 100% Of AGI Limit On Charitable Contributions Explained.  I learned about this in April and I posted the information about it in the RV Tax Tip thread, from which I've copied the pertinent information below.  I've reposted this several times since then but people just don't seem to realize the magnitude of this.  For people who plan to gift a lot to charity, this a real game changer and I strongly enourage you to carefully read and STUDY how I explained it below.  link to the post   And for anyone interested in learning more, Bob is currently doing free webinars and if you search for:  Breitling dinar blog , you'll find his site where he gives you the link to sign up for Bob's free webinar.

*********************************************************

 

 

But the really HUUUUUGE news (and Bob just announced this yesterday) is that Trump's new CARES Act has increased the percentage of charitable deductions for 2020 (and probably only for the year 2020 since this is a way to help out charities who are sorely hurt by the coronavirus) to 100%!!!  What this means is that by donating a lot to charity after the RV, you can potential lower your tax liability to 0, zero, zilch, nada! 

 

Here's an example:  you have 10 million dinar and it RVs at $1 (picking a number to make the calculations easy).  You give 5 million dinar, worth USD$5 million (5 million US dollars) to a charity (and CARES specifies it has to be a public charity and certain foundations, and also that it has to be cash - which dinar is), and get a receipt from them for the USD$5 million value.  Then you keep the remaining 5 million dinar (also worth USD$5 million) for yourself and cash it in.  You then use your charitable donation reciept for US$5 million as a write off against your USD$5 million gain on the RV, so your tax liability is $0!!!  That way you NET the full amount of your half, USD$5 million because you OWE NO TAXES!  By giving away half your dinar, you reduce your federal tax liability to zero on the other half you keep and cash in!!  However, I doubt any state is going to change their tax laws for the coronavirus like the federal governmen did.  So if you live in a state that charges income tax (unlike the income tax free states of Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming and people like me who live outside the US), you will still have to pay your state income tax on the gain.  

 

Also, and this is HUGE, there happened to be a person on my webinar last night who worked all her life in charities.  It's not possible to just create a new charity and gift your dinar to it because the CARES ACT mandates it must be a public charity or certain foundations, and it takes the IRS 2-3 years to approve a new charity.  However this person on the webinar had a strong background in the world of charities, and she said you can go to your local "Community Foundation" and they will help you set up your own charity under their umbrella so that your new charity will quality for the CARES Act program under their foundation umbrella.  They take a small percentage of your contributions, but you control the charity.  Now, absolutely we all need to discuss this strategy with a tax attorney, and both this person and Bob said that.  But if this can be worked outed, this is AWESOME!  I have lots of things I want to do and I'd love to be the one in control of making sure they get done well.  I had planned to establish my own charity anyway, but now this looks to be a way to do that from the get go.  I am super excited about this strategy and hopefully some others of you here will be too.  

[Dinarrock]

Thanks for the post Kristi definitely sounds interesting let’s hope we get to actually take advantage of this for those whom choose to donate and go this route! With that being said I sure hope people actually research about the charities they will be giving too as so so many of them are actual scams to make certain individuals super rich! Did you know that a lot of charities actually only wind up using 5-10% of the money donated to them for the benefit of what the charity is established for and the other 90+% of the money goes to their salaries and again made up fees and expenses so basically a legal scam. And whatever you do PLEASE DO NOT GIVE A DIME TO THE CLINTON FOUNDATION AND BILL AND MELINDA GATES FOUNDATION!!! Those two are the worst and most corrupt IMO!!!

[Floridian]

@KristiD     Thanks for this excellent information.

 

I'm wondering if, in light of the "CARES Act", we still have to make out a notarized gift form saying we are gifting half our dinars to charity.

[Rochester]

2 hours ago, KristiD said:

 

Well, we DO have a connection.  I traveled to Alberta (Edmonton) to buy my horse who is the light of my eye, so I definitely feel a connection to Alberta!!

 

Great city. I used to live near Whyte Avenue, where all the bars are...lol

[KristiD]

1 hour ago, Floridian said:

I'm wondering if, in light of the "CARES Act", we still have to make out a notarized gift form saying we are gifting half our dinars to charity.

 

According to Bob, NO, we do not!!   I left out a couple of sentences when I copied the text above, so here's the part I left out.  It's a good thread (link to it), especially if you want to leave a family legacy and/or want to do a lot of charity work.  Bob has decades of CPA experience and he's been focussed entirely on the RV for the past few years and has some really good options.  It's free to listen to what he has to say, 

AND he'll give you a free 30 minute private phone consultation to boot.  Anyway, here's the part I left out.

 

They have changed some of the programs, most noteably you now set up your Charitable Remainder Trust now, pre RV.  Also important is that you no longer need to prepare a gift letter to your Charity pre RV. 

****************************************************************************************

 

1 hour ago, Dinarrock said:

With that being said I sure hope people actually research about the charities they will be giving too as so so many of them are actual scams to make certain individuals super rich! Did you know that a lot of charities actually only wind up using 5-10% of the money donated to them for the benefit of what the charity is established for

 

Yes Dinarrock!  That's why the second paragraph (which I'll repeat again now because this so HUGE) is so FANTASTIC!!!  There is a way that you can create your own charity (post RV - you don't even have to do it now) and set it up under the umbrella of a "Community Foundation" (and pretty much every town and county has one, and there are even national and state ones) which allows your brand new charity to qualify for the CARES 100% deduction program!!  I didn't mention it, but I think you and/or your family/friends can even draw a salary from your new charity for your work to manage it!!!  SAAAWEEEET!!!!  Again, we all need to check with a tax attorney to actually do this, but it's one heck of a plan which looks to be totally legally!!!!   Pretty exciting information!

 

Also, and this is HUGE, there happened to be a person on my webinar last night who worked all her life in charities.  It's not possible to just create a new charity and gift your dinar to it because the CARES ACT mandates it must be a public charity or certain foundations, and it takes the IRS 2-3 years to approve a new charity.  However this person on the webinar had a strong background in the world of charities, and she said you can go to your local "Community Foundation" and they will help you set up your own charity under their umbrella so that your new charity will quality for the CARES Act program under their foundation umbrella.  They take a small percentage of your contributions, but you control the charity.  Now, absolutely we all need to discuss this strategy with a tax attorney, and both this person and Bob said that.  But if this can be worked outed, this is AWESOME!  I have lots of things I want to do and I'd love to be the one in control of making sure they get done well.  I had planned to establish my own charity anyway, but now this looks to be a way to do that from the get go.  I am super excited about this strategy and hopefully some others of you here will be too. 

[Floridian]

9 minutes ago, KristiD said:

 

According to Bob, NO, we do not!!   I left out a couple of sentences when I copied the text above, so here's the part I left out.  It's a good thread (link to it), especially if you want to leave a family legacy and/or want to do a lot of charity work.  Bob has decades of CPA experience and he's been focussed entirely on the RV for the past few years and has some really good options.  It's free to listen to what he has to say, 

AND he'll give you a free 30 minute private phone consultation to boot.  Anyway, here's the part I left out.

 

They have changed some of the programs, most noteably you now set up your Charitable Remainder Trust now, pre RV.  Also important is that you no longer need to prepare a gift letter to your Charity pre RV. 

****************************************************************************************

 

 

Thanks, Kristi, that's good to know.

The last time I prepared a gift letter for 2 charities, I had it notarized in the bank.

 

The lady kept asking questions.  What is dinar?  You must have a lot if you're giving so much to charity, etc. etc.  

I had to keep explaining that I've had it for years and it's not worth so much now, and we're waiting for it to revalue - and so on and so on.

I don't want to go through that again.   😂 😂 😂

[ChuckFinley]

On 7/15/2020 at 5:26 PM, ladyGrace'sDaddy said:

NESERA/GESERA 

 

 

Yes it does 

 

LHD, I do not see much mentioned about NESERA/GESERA/TRUMPSERA but I guess it depends on how many roads you are looking at the secure a future.  

[justchecking123]

On 7/18/2020 at 3:58 PM, Floridian said:

 

Thanks, Kristi, that's good to know.

The last time I prepared a gift letter for 2 charities, I had it notarized in the bank.

 

The lady kept asking questions.  What is dinar?  You must have a lot if you're giving so much to charity, etc. etc.  

I had to keep explaining that I've had it for years and it's not worth so much now, and we're waiting for it to revalue - and so on and so on.

I don't want to go through that again.   😂 😂 😂

Lol

[KristiD]

On 7/18/2020 at 2:51 PM, Floridian said:

@KristiD     Thanks for this excellent information.

 

I'm wondering if, in light of the "CARES Act", we still have to make out a notarized gift form saying we are gifting half our dinars to charity.

 

I was just listening to Bob's recording and he specifically said that you do NOT want to do a gift letter to charity now because if you did, it will peg your charitable write off at only the amount you paid for your dinar.  That makes sense because that's the exact reason we are doing gift letters for our IBC, family and friends.  We want THEM to be responsible for the taxable gain once the RV happens and not us.  I know for sure the increase to 100% of adjust gross income (taxable income) mandates it must be a "cash"gift.  So super lucky for us that our IQD investment is actually cash.  Anyway, since you have gift letters, you might as well hold on to them just in case things change at some point in the future, but just don't give them to your charity now.  And if the RV does happen shortly while we're under the new CARES Act charitable deductions rules, then you can toss them.

[Floridian]

2 hours ago, KristiD said:

 

I was just listening to Bob's recording and he specifically said that you do NOT want to do a gift letter to charity now because if you did, it will peg your charitable write off at only the amount you paid for your dinar.  That makes sense because that's the exact reason we are doing gift letters for our IBC, family and friends.  We want THEM to be responsible for the taxable gain once the RV happens and not us.  I know for sure the increase to 100% of adjust gross income (taxable income) mandates it must be a "cash"gift.  So super lucky for us that our IQD investment is actually cash.  Anyway, since you have gift letters, you might as well hold on to them just in case things change at some point in the future, but just don't give them to your charity now.  And if the RV does happen shortly while we're under the new CARES Act charitable deductions rules, then you can toss them.

 

Great information!  

Thanks so much, Kristi.  😊

[screwball]

On 7/18/2020 at 11:24 AM, Floridian said:

Been thinking about the "Windfall Tax", since it's been brought up here.

 

I would like to know how this could be considered a "Windfall" when we have been invested 10, 15, 17 years?

 

A windfall is when you suddenly win the lottery, or that kind of thing.  Something sudden and unexpected.  We have all been expecting the Dinar to revalue for many years.

 

Thoughts anyone?

 

 

whenever you exchange currency (IQD) to another you (AUS or USD) you have created a taxable event, this means you pay tax the longer you have it the less tax! correct me if I am wrong!

[screwball]

its simple you exchange into USD you pay tax, if you gift money to a friend or relative they do not pay tax....

[screwball]

what happens if you transfer IQD into a foreign currency account? in another currency? is this a taxable event?

[Adam Montana]

8 hours ago, screwball said:

its simple you exchange into USD you pay tax, if you gift money to a friend or relative they do not pay tax....

 

That's not correct. 

 

8 hours ago, screwball said:

what happens if you transfer IQD into a foreign currency account? in another currency? is this a taxable event?

 

When you profit, that is generally taxable. 

 

8 hours ago, screwball said:

whenever you exchange currency (IQD) to another you (AUS or USD) you have created a taxable event, this means you pay tax the longer you have it the less tax! correct me if I am wrong!

 

With some investments there is a difference depending on how long you held the investment. Foreign currencies are a bit of a wildcard, and our specific situation falls under the "hope for the best" guidelines and regulations.

 

Most likely the profits from a major revaluation of this currency will be treated as normal income, and taxes will be owed accordingly. 

 

Tax rate	Single	Married, filing jointly	Married, filing separately	Head of household
10%	$0 to $9,875	$0 to $19,750	$0 to $9,875	$0 to $14,100
12%	$9,876 to $40,125	$19,751 to $80,250	$9,876 to $40,125	$14,101 to $53,700
22%	$40,126 to $85,525	$80,251 to $171,050	$40,126 to $85,525	$53,701 to $85,500
24%	$85,526 to $163,300	$171,051 to $326,600	$85,526 to $163,300	$85,501 to $163,300
32%	$163,301 to $207,350	$326,601 to $414,700	$163,301 to $207,350	$163,301 to $207,350
35%	$207,351 to $518,400	$414,701 to $622,050	$207,351 to $311,025	$207,351 to $518,400
37%	$518,401 or more	$622,051 or more	$311,026 or more	$518,401 or more

[KristiD]

 

13 hours ago, screwball said:

its simple you exchange into USD you pay tax, if you gift money to a friend or relative they do not pay tax....

 

4 hours ago, Adam Montana said:

That's not correct. 

 

If you are trying to say that you AFTER exchange your dinar and then gift some of the cash you received from that exchange to a friend or relative, that those friends/relatives are NOT responsible for the taxable gain on the RV - then, in my opinon you are correct.  However, Adam is correct that there may be taxes owed when you gift money to someone else.  The only exception is if it's $15,000/year or less.  I found this great article that breifly explains the details of how that works.  As always you need to speak to a qualified tax professional, but this gives you an idea of the basics . https://blog.taxact.com/gift-tax-do-i-have-to-pay-gift-tax-when-someone-gives-me-money/ 

 

4 hours ago, Adam Montana said:

13 hours ago, screwball said:

whenever you exchange currency (IQD) to another you (AUS or USD) you have created a taxable event, this means you pay tax the longer you have it the less tax! correct me if I am wrong!

 

With some investments there is a difference depending on how long you held the investment. Foreign currencies are a bit of a wildcard, and our specific situation falls under the "hope for the best" guidelines and regulations.

 

Most likely the profits from a major revaluation of this currency will be treated as normal income, and taxes will be owed accordingly. 

 

I want to weigh in on this because, though I'm not a tax professional, I'm pretty good in finance and I spent a fair amount of time researching this a year and a half ago.  Thanks to some great posts here by a very high caliber CPA, extaxguy, I decided that there's a good probability that I CAN claim my RV income as capital gains and therefore pay a maximum of only 20% taxes on it.  I even wrote up a nice letter to give to my accountant that justifies my position. But then I watched a great video by Aaron Russo, a famous movie producer, in which he explained how he and some wealthy friends had paid capital gains taxes on an investment they had all made.  Years later the IRS changed the tax treatment and made it Ordinary Income instead - and made it RETROACTIVE!!    So Aaron and his buddies were billed for more taxes PLUS Penalties and Interest.  They were wealthy people and sued the IRS and even though they should have won because it surely can't legal for the IRS to retroactively change the laws - THEY LOST!   I think some of his rich buddies even went broke from it.

 

So the upshot is that, while it's possible the RV gains may be taxed as Capital Gains (and with Trump in office, I think the probability of that happening is the highest it's ever been), don't count on that!!  You're far better off assuming you'll pay the maximum (37% + your state income tax) and if turns out we're lucky enough to only pay capital gains on the gain, we gan apply for a refund and it'll be found money for us!  

 

Also, as I've been espousing recently, for those who plan to give money to charities post RV, give it to them in physical dinar notes (and don't make a gift letter for it).  That way you can write off the new higher amount against your income.  And this year, thanks to the CARES Act, you can give up to 100% of your taxable income to qualified charities (which for most people who aren't making a big income, would be about half of their dinar) and you wouldn't owe any federal income tax on the other half you keep and cash in!  However you'd still have to pay your state income tax (see info below).  Pretty sweet plan for people who like to support charities!!!  You can find more specifics in the "RV Tax Tip" thread.

 

Tax planning is so important!  I know it's intimidating to people, but you risk losing so much of your new found wealth if you don't address it pre-RV.   There's a lot of free info here on this site that you can start with, and once you start learning about it, it's really pretty easy to understand the basics.

 

[KristiD]

On 7/17/2020 at 8:14 PM, Floridian said:

Geez!  I just heard last night that 3 of my cousins came down with Covid.  It's just too much to take.    😟 

Seems like Florida is the worst place to be at this time.

 

Hopefully one or all 3 of your cousins don't really have it!  Now it turns out that Florida is deliberately overstating their positive cases. Places are showing close to 100% positive cases when the real number is much less.  In Connecticut they found the tests were faulty and no accurate. Now they're notifying people who never even took the test that they tested positive.  link

SCIENCE FRAUD: Florida Gov. DeSantis calls for investigation into why people are testing “positive” for coronavirus tests they never received