Rumor of no taxes???

[rob9163]

Although this is my first post I have been coming to this site for several months now. A trusted financial advisor just informed me that, according to several tax people he works with, there will be no tax on currency exchange. I fully realize that most people on this site are not certified to offer tax advice and am not asking for advice...but has anyone heard this as well? I have tried googling it and looking at the IRS code but everywhere I look I see long term/short term capital gains taxes being applicable. I do plan on getting a tax attorney and CPA once this RV happens, but I didn't know if anyone had any thoughts on this subject.

Thanks.

[Ransom]

Also has anybody heard that they were trying to get a new capitol gains rate passed? 0% on capitol gains to help the economy?

[buckwheat]

This is the United States of America. You are going to bend over and take a big stick up your privates. You will never be able to avoid taxes. The government is to powerful. Accept the fact and enjoy what you have left. Thank you to all the men and women of our military who protect us.

[pourit]

As I understand it any capital gains over $200 is treated just like any other capital gains. I hate it but that is the story I've heard. Hope it's not so but if we only have a short time to cash in...I guess we'll take what we get. POURITFORWARD

[faithkeeper]

of two things i am sure and that is death and taxes ...... sorry folks

thanks for the rumor we could always wish ...right ?

[keepmwlknfny]

No matter what you will pay taxes......no one is pushing for a 0% tax on capital gains either....the govt is NOT going to give that up when they are hurting for money as bad as they are.....anything over 200 dollars made on a currency exchange is going to get taxed and anything over 9,999 cashed in will be reported to the IRS by the person you are exchanging with....even if you have smaller denoms and cash in a little at a time, that will also throw up red flags and bring attention to you.....just pay your taxes and enjoy the rest of your life!

[dinariac]

Although this is my first post I have been coming to this site for several months now. A trusted financial advisor just informed me that, according to several tax people he works with, there will be no tax on currency exchange. I fully realize that most people on this site are not certified to offer tax advice and am not asking for advice...but has anyone heard this as well? I have tried googling it and looking at the IRS code but everywhere I look I see long term/short term capital gains taxes being applicable. I do plan on getting a tax attorney and CPA once this RV happens, but I didn't know if anyone had any thoughts on this subject.

Thanks.

Google TIPRA (Tax Increase Prevention & Reconciliation Act of 2005). It talksabout no capital gains taxes if you're in the 10 to 15% bracket. Take this info to a tax attorney and see what they say. I haven't been to a tax attorney yet since I'm still slaving day by day making ends meet and waiting for this RRRVVVVVVVVV.

[shennosy]

who is going to be in a 10%-15% after an RV! not any one on this forum.

[ReturnToGod]

Although this is my first post I have been coming to this site for several months now. A trusted financial advisor just informed me that, according to several tax people he works with, there will be no tax on currency exchange. I fully realize that most people on this site are not certified to offer tax advice and am not asking for advice...but has anyone heard this as well? I have tried googling it and looking at the IRS code but everywhere I look I see long term/short term capital gains taxes being applicable. I do plan on getting a tax attorney and CPA once this RV happens, but I didn't know if anyone had any thoughts on this subject.

Thanks.

Rob, welcome. As many have already advised, you will be taxed on your capital gain, and no one will be in the 10% or 15% tax bracket when this RV occurs (unless perhaps they purchased only one 5K IQD note). Whatever I realize from the RV, I'm keeping half of it aside for tax purposes. I might not need the entire 50%, but I'd rather err on the conservative side than have the IRS going after all of my wealth later. I wish you wisdom to make an intelligent decision that best fits your circumstance.

[dinariac]

Rob, welcome. As many have already advised, you will be taxed on your capital gain, and no one will be in the 10% or 15% tax bracket when this RV occurs (unless perhaps they purchased only one 5K IQD note). Whatever I realize from the RV, I'm keeping half of it aside for tax purposes. I might not need the entire 50%, but I'd rather err on the conservative side than have the IRS going after all of my wealth later. I wish you wisdom to make an intelligent decision that best fits your circumstance.

What I've read from the TIPRA is that the 10-15% tax bracket applies to the previous tax year. Like I said, only a tax attorney will know for sure. I'm not a tax expert by any means. I'm just a regular, self-employed guy that's been doing his own taxes for years. It would be great if the TIPRA information was accurate though

GO RRRRRRVVVVVVVVV

[dandr70]

After speaking to our CPA, he explained that prior to 12/31/10 there will be NO capital gains tax. However, we must pay Quarterly tax on the Income we receive during that prior qtr. So, if RV happens and we cash in prior to 9/15/2010, we much pay 38% Fed Income tax, plus 8% to NY state (where we live)...after 1/1/11 it's a whole nother story!!!! (if capital gains is reinstated)...

If it happens and we cash in 9/16-12/31/10, we have till 1/15/10 to pay the abovementioned taxes...

So....we, too, are planning 50% held aside for taxes...if it happens, say in October, we will cash in and put 1/2 in a 3 month CD, etc. and then pay the taxes on 1/15/10...

[rob9163]

Thanks for everyones response. I am fully prepared to pay whatever taxes come about as I definitely don't want the black suits from the IRS to come a-knockin' but obviously hearing this rumor caused my ears to perk.

[stoger1]

I have spoken to my CPA as well and he said I didn't need a tax attorney. But I think I will get one anyway just to CMA. There is alot of money at stake for sure.

Edited September 2, 2010 by stoger1

[LittleMissGrits]

who is going to be in a 10%-15% after an RV! not any one on this forum.

there are those, more in the know than moi, who say the cap gains rates are based on your CURRENT tax bracket, so that would be BEFORE the dinar gains were added on. One thing for sure, IF the govt wanted you to know what to do with your taxes, there would not be soooooooooo many opinions within the IRS over the same questions. It would be simple, cut and dry ... the way it is now, there is a law for everything, and when you claim one tax strategy, there is another one somewhere to counter it! Get good tax advice, do what you think is right and prudent ( that way it will for sure be wrong lol) ... and then keep a VERY low profile!!!

[Traconesu02]

Although this is my first post I have been coming to this site for several months now. A trusted financial advisor just informed me that, according to several tax people he works with, there will be no tax on currency exchange. I fully realize that most people on this site are not certified to offer tax advice and am not asking for advice...but has anyone heard this as well? I have tried googling it and looking at the IRS code but everywhere I look I see long term/short term capital gains taxes being applicable. I do plan on getting a tax attorney and CPA once this RV happens, but I didn't know if anyone had any thoughts on this subject.

Thanks.

I am not sure if this is what you are talking about or not ?

*** September 21st - Currency Transaction Tax ~ Tobin Tax ~ 60 Nations to Lobby U.N. for Currency Transaction Tax ...

previous article ~ Deficit Busting Tobin Tax Could Save America ~ October surprise?

August 31, 2010

60 nations to lobby U.N. for currency transaction tax

PARIS, A group of 60 nations, including France , Britain and Japan, will propose at the U.N. this month that a tax be introduced on international currency transactions to raise funds for development aid, ministers said on Wednesday.

Speaking after a meeting in Paris, French Foreign Minister Bernard Kouchner said the group had agreed a common position for the United Nations Millennium Objectives summit on September 21.

Ministers estimated the tax could raise as much as $35 billion a year for development aid.

"For every 1,000 euros the tax we are suggesting will bring 5 cents," Kouchner told reporters. "It's not a lot, but enough to get things going."

The global aid gap is estimated at $340 billion a year between 2012-2017, including $156 billion for climate change in poor countries and $180 billion for public development.

French President Nicolas Sarkozy has repeatedly supported the idea, but European Union leaders have struggled to convince the United States and other nations to put it on the G20 agenda.

At their last meeting in Toronto the idea was barely discussed, but Sarkozy in August highlighted it as one of his key objectives during France 's chair of the G20 from November. Link ~*** France's Sarkozy Unveils G20 Leadership Agenda: Currency - Taxes - Financial Reform ...

"We know there is reluctance and that's why we have chosen the simplest option," said Spain 's Secretary of State for International Co-operation Soraya Rodriguez.

The 60-nation pilot group picked a multi-currency transaction tax as it would be the easiest to implement internationally, she said.

The tax, which would raise an estimated $25 billion to $35 billion a year, would be imposed on transactions in British sterling, euros, dollars and yen and would need the backing of the relevant central banks.

Twelve countries among the 60 are heading up the project and appointed a panel of international experts last year to outline viable options.

The report said the currency tax was the preferred solution, but also gave other options, including a financial sector activity tax, a value-added tax (VAT) on financial services, a broad financial transactions tax and a nationally collected single currency transaction tax.

TOBIN TAX

Nobel prize-winning U.S. economist James Tobin first proposed a small levy on currency trading in 1972 to penalize short-term speculation after the United States abandoned the gold standard and floated the dollar.

His idea found no takers then and lay dormant until the French-based anti-globalization movement ATTAC (the Association for the Taxation of Financial Transactions for the Aid of Citizens) began campaigning for it in the mid-1990s.

Critics have said that any tax would only be feasible if all the world's main financial centers agreed to levy it. Until now there is no sign that the United States is remotely interested.

"The Americans are extremely important in this, but we are not alone," Kouchner said, adding that the tax could possibly go ahead with just the 60 nations behind it.

Many key details remain to be worked out, such as who would receive and allocate the revenue and for what projects.

Banking and business lobbies, still argue that a levy on financial transactions would drive business offshore, reduce trading volumes and liquidity, hit employment in the financial sector, harm shareholders and slow the world economy. They also say it would be hard to collect and easy to evade

"If the political will is there, it could be done within 2-3 years," said Belgium 's Development Cooperation Minister Charles Michels.

http://articlesofinterest-kelley.blogspot.com/2010/09/currency-transaction-tax-tobin-tax-60.html

[dlbfilm]

Dont be foolish we will all have to pay....

[Captjohn]

I posed this very question to my tax accountant recently. He stated that currency gains are treated like capital gains; both long-term and short-term.

One thing you can be sure of, is the government (especially this one) will extract every penny from you they can......and maybe more, if they can dream up ways.

Just sayin....

[dlbfilm]

There will always be taxes dont be foolish...

[Dina]

For there to be a tax on something it must first be taxable income under the revenue laws.

this will help too:

Has anyone mentioned that a Democratic representative is proposing legislation that will tax currency exchanges at a rate of 0.5%. He was on Fox News a while back talking about it. He complained that currency exchanges are not currently taxable as income or capital gains. He wants to tax all currency exchanges over $600,000.00 in value at the 0.5% rate. I find the timing of this to be incredibly coincidental considering that it has happened in the last two weeks. theiraqidinar.com/shiler-email-to-dd-currency-tax/

Dont believe the fear mongers telling you to pay a tax on everything you own out of fear and ignorance of the law (USA law only)

Consult a "tax attorney" ?? accountant? where do you think they earn their living from?

[Doc31]

[TimS]

Investing in foriegn currency whether through the forex or indirectly, as with the dinar IS a taxable transaction in the US. The one thging a lot of us have going is the time the RV has taken to happen......anyone holding dinar for more than 12 months before cashing in via RV will be taxed at the much lesser long term capital gains rate as apposed to those of us who recently bought and the RV happens in less than 12 months from those purchases.

short term capital gains is regular tax rate you normally fall into....long term capital gains is only about 10%, much better for most.

[The Watcher]

PARIS, A group of 60 nations, including France , Britain and Japan, will propose at the U.N. this month that a tax be introduced on international currency transactions to raise funds for development aid, ministers said on Wednesday.

Speaking after a meeting in Paris, French Foreign Minister Bernard Kouchner said the group had agreed a common position for the United Nations Millennium Objectives summit on September 21.

Ministers estimated the tax could raise as much as $35 billion a year for development aid.

"For every 1,000 euros the tax we are suggesting will bring 5 cents," Kouchner told reporters. "It's not a lot, but enough to get things going."

The global aid gap is estimated at $340 billion a year between 2012-2017, including $156 billion for climate change in poor countries and $180 billion for public development.

French President Nicolas Sarkozy has repeatedly supported the idea, but European Union leaders have struggled to convince the United States and other nations to put it on the G20 agenda.

At their last meeting in Toronto the idea was barely discussed, but Sarkozy in August highlighted it as one of his key objectives during France 's chair of the G20 from November. Link ~*** France's Sarkozy Unveils G20 Leadership Agenda: Currency - Taxes - Financial Reform ...

"We know there is reluctance and that's why we have chosen the simplest option," said Spain 's Secretary of State for International Co-operation Soraya Rodriguez.

The 60-nation pilot group picked a multi-currency transaction tax as it would be the easiest to implement internationally, she said.

The tax, which would raise an estimated $25 billion to $35 billion a year, would be imposed on transactions in British sterling, euros, dollars and yen and would need the backing of the relevant central banks.

Twelve countries among the 60 are heading up the project and appointed a panel of international experts last year to outline viable options.

The report said the currency tax was the preferred solution, but also gave other options, including a financial sector activity tax, a value-added tax (VAT) on financial services, a broad financial transactions tax and a nationally collected single currency transaction tax.

I don't believe the UN has any taxing authority over the United States or any other country for that matter.