Tax treatment for dinar trades

[WantsToRetire]

I've been reading the posts describing how the IRS will treat our returns. And doing a little online research to verify. I found this video from March of 2010. The information in this video states that gains from trading currency that has been PHYSICALLY HELD will be taxed at ordinary rates. In fact, Robert Green says, we will be "trapped" in ordinary gain or loss rates. We will be unable to use the 60-40 rule that's been mentioned by one of our posters. He also states that there is confusion among accountants with regard to this issue. Can anyone confirm or deny?

Thanks.

http://www.moneyshow.com/video/video.asp?wid=4826&t=3&scode=013790%20

[Hopeful Leo]

"Taxed at ordinary rates"...? Does that mean as reugular income tax?

[WantsToRetire]

"Taxed at ordinary rates"...? Does that mean as reugular income tax?

It may be. This link says the rate of taxation on ordinary income is 35% (+ $$$) on income over $373,650.

http://taxes.about.com/od/preparingyourtaxes/a/tax-rates_2.htm

[njacobs]

It's all Greek to me...my brain just isn't equipped for this. I have no idea what he was saying. Can anybody brake that down and put it on the "bottom shelf"?

thnx

[Pexring]

I know I won't spend a whole lot of time worrying about the tax consequences until an RV actually happens. Then I'll be making an appointment with the best tax accountant in the business!

[Captjohn]

I've been reading the posts describing how the IRS will treat our returns. And doing a little online research to verify. I found this video from March of 2010. The information in this video states that gains from trading currency that has been PHYSICALLY HELD will be taxed at ordinary rates. In fact, Robert Green says, we will be "trapped" in ordinary gain or loss rates. We will be unable to use the 60-40 rule that's been mentioned by one of our posters. He also states that there is confusion among accountants with regard to this issue. Can anyone confirm or deny?

Thanks.

http://www.moneyshow.com/video/video.asp?wid=4826&t=3&scode=013790%20

I asked my CPA for clarity on this issue, explaining exactly when and how I had purchased dinar. He stated that gains on currency would be treated exactly like gains on securities; that is, long-term and short-term for gains realized on currency held for more or less that one-year respectively.

[going bonkers]

That video wasn't presented by the IRS, I am leaning toward it being over a $200 gain and it is taxed as a capital gains situation per code. But hey, who am I.

I had 25,000 Dinar on the Redskins game and lost.....

GO RV