ronscarpa Posted August 16, 2022 Report Share Posted August 16, 2022 Remember, no one really knows what will happen, or when. They're simply stating their opinions based on what they perceive to be happening in Iraq... RON *** BobTheTaxMan The facts regarding taxation on the IQD - It's going to be ordinary income. Meaning it doesn't get the favored tax treatment that a capital asset would...the taxes due will be calculated by your person tax bracket and your marital status when you exchange the IQD for the USD...the maximum taxation on IQD exchange would range from about 37% for the federal and then you have California that wants to add 13% [or what your state wants] more so you're looking at 50% you're gonna lose... [NOTE: - Consult your financial and tax professionals at the appropriate time to build the most advantageous tax and exchange plan for your unique circumstances.] 4 2 1 Quote Link to comment Share on other sites More sharing options...
trvlr787 Posted August 16, 2022 Report Share Posted August 16, 2022 Checked with Fidelity and they say IRS does NOT allow you to hold foreign currency in an IRA account. FYI for anyone interested. 2 1 1 1 Quote Link to comment Share on other sites More sharing options...
Luigi1 Posted August 16, 2022 Report Share Posted August 16, 2022 2 hours ago, ronscarpa said: *** BobTheTaxMan The facts regarding taxation on the IQD - It's going to be ordinary income. Meaning it doesn't get the favored tax treatment that a capital asset would...the taxes due will be calculated by your person tax bracket and your marital status when you exchange the IQD for the USD...the maximum taxation on IQD exchange would range from about 37% for the federal and then you have California that wants to add 13% [or what your state wants] more so you're looking at 50% you're gonna lose... [NOTE: - Consult your financial and tax professionals at the appropriate time to build the most advantageous tax and exchange plan for your unique circumstances.] Luigi says...he set up a permanent residency in FL. No state taxes on income. There are several other states that'll not tax your exchanges. Fl, WY, TX, TN & I'm not sure about WA & OR. Check state tax laws. Windfall investments may be treated differently. Some banks may charge up to 6% in exchange fees so check aroun & ask. Set 50% aside for federal, state, county & local city taxes. We will have to file every quarter after the exchange. Be prepared for the unexpected as tax laws are forever changing. IMO. 2 1 Quote Link to comment Share on other sites More sharing options...
ronscarpa Posted August 16, 2022 Author Report Share Posted August 16, 2022 1 hour ago, trvlr787 said: Checked with Fidelity and they say IRS does NOT allow you to hold foreign currency in an IRA account. FYI for anyone interested. Trvlr787 ... you need to go to a bank that allows you to hold foreign currency in their IRA. I've been using Bank of Utah since 2009, but they are full up to capacity at this point. I got over 50 other IQD holders to sign up years ago. There are other self-directed IRAs out there that will allow it., who can store your IQD in their vaults. Institutions like Fidelity, TC Ameritrade, and the others that work the trading markets don't have the space to store the paper currency - only digital trades that can be stored on computers. Hope this helps. RON 3 2 1 Quote Link to comment Share on other sites More sharing options...
ronscarpa Posted August 16, 2022 Author Report Share Posted August 16, 2022 44 minutes ago, Luigi1 said: Luigi says...he set up a permanent residency in FL. No state taxes on income. There are several other states that'll not tax your exchanges. Fl, WY, TX, TN & I'm not sure about WA & OR. Check state tax laws. Windfall investments may be treated differently. Some banks may charge up to 6% in exchange fees so check aroun & ask. Set 50% aside for federal, state, county & local city taxes. We will have to file every quarter after the exchange. Be prepared for the unexpected as tax laws are forever changing. IMO. Good post Luigi..! Thanks ... RON 1 5 Quote Link to comment Share on other sites More sharing options...
trvlr787 Posted August 16, 2022 Report Share Posted August 16, 2022 Ron I thought you had mentioned that but the way Fidelity stated it was not a storage issue but flat out that IRS wouldn't allow it. I will check some banks. Quote Link to comment Share on other sites More sharing options...
Shedagal Posted August 16, 2022 Report Share Posted August 16, 2022 16 minutes ago, trvlr787 said: Ron I thought you had mentioned that but the way Fidelity stated it was not a storage issue but flat out that IRS wouldn't allow it. I will check some banks. Have had a Dinar Roth since 2012. Used Vantage IRAs, a great company out of Scottsdale, Arizona. They send a statement every year to the IRS. 2 1 Quote Link to comment Share on other sites More sharing options...
trvlr787 Posted August 16, 2022 Report Share Posted August 16, 2022 Thanks I will contact them Quote Link to comment Share on other sites More sharing options...
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