how will this rv be taxed

[kingcamera82]

i dont know about anyone else but i have heard so many conflicting stories....is it capitol gains or ordinary income? ther have been many members here who have spoke to a cpa and or tax attorney and it seems that a lot os cpa's are on a different page....i know each state will have different rates but as far as the feds are concerned what is it? we need a clear cut answer and not people interpreting the irs codes, so plz if someone knows the answer plz post with irs codes and reason why so the board is up to par on how we will be taxed if this happens....thank you in advance and im sure many of us will wait for the answer.

[rroadrunner]

i dont know about anyone else but i have heard so many conflicting stories....is it capitol gains or ordinary income? ther have been many members here who have spoke to a cpa and or tax attorney and it seems that a lot os cpa's are on a different page....i know each state will have different rates but as far as the feds are concerned what is it? we need a clear cut answer and not people interpreting the irs codes, so plz if someone knows the answer plz post with irs codes and reason why so the board is up to par on how we will be taxed if this happens....thank you in advance and im sure many of us will wait for the answer.

[kingcamera82]

Here a great read by one of the DV members. Puts things in perspective

i have to be VIP to read that...is there any way you can copy and paste that to this page plz.

[cleaner100]

i dont know about anyone else but i have heard so many conflicting stories....is it capitol gains or ordinary income? ther have been many members here who have spoke to a cpa and or tax attorney and it seems that a lot os cpa's are on a different page....i know each state will have different rates but as far as the feds are concerned what is it? we need a clear cut answer and not people interpreting the irs codes, so plz if someone knows the answer plz post with irs codes and reason why so the board is up to par on how we will be taxed if this happens....thank you in advance and im sure many of us will wait for the answer.

I HAVE HEARD IN SEVERAL VENUES THAT IT WILL BE TAXED AT 30%. I AM GOING TO DO FURTHER RESEARCH. THAT IS QUITE HIGH. MAYBE IT IS WRONG? OH WELL.

[Richardk]

The current tax will be in the 36% range, after the new year Obama will have it approx 39-40%.

There are rumors that it may be put into the Lotto tax range of 50+ %. Another ugly speculation is 60-70%.

There is no way IMO that the current admin will allow it to be taxed as normal income. You have capitol gains.

I would recommend you join the VIP group for much more insight on this and how to protect your assets

after RV/RI occurs.

Best of luck and GO RV/RI

[All-In-4-RV]

Taxed as ordinary income, it is not a capital assest. Larry M. Wood, CPA, CFE

[Kinnie88]

Taxed as ordinary income, it is not a capital assest. Larry M. Wood, CPA, CFE

Concur with Larry and so does several other CPAs and Tax Advisors, taxed as ordinary income. To think the Obama Administration will change tax rates ay their discretion is wrong, congress is part of our democracy.

[kingcamera82]

Concur with Larry and so does several other CPAs and Tax Advisors, taxed as ordinary income. To think the Obama Administration will change tax rates ay their discretion is wrong, congress is part of our democracy.

thats what i was afraid of it being......looks like with state and fed im at 39.5%.......now im definitely purchasing more to cover the tax on it. thx for the heads up....hopefully they get this done before the year is up....next year ill be very close to 50% taxed....thats ugly

[Kinnie88]

thats what i was afraid of it being......looks like with state and fed im at 39.5%.......now im definitely purchasing more to cover the tax on it. thx for the heads up....hopefully they get this done before the year is up....next year ill be very close to 50% taxed....thats ugly

Move to a non-income tax state quickly...

[kingcamera82]

Move to a non-income tax state quickly...

trust me i wish it was that easy but i have a home in arizona and im kinds stuck til this rv's then im out!!!

[Dutch Boy]

I just move to Europe last week. My IQD are in the States in a secure place with my friends who clued me in on the Dinar. Can I bring my IQD to Europe to cash it in in Euro's without having to pay tax in the US as well?

[dinarette]

Taxed as ordinary income, it is not a capital assest. Larry M. Wood, CPA, CFE

Not necessarily - it depends on whether you convert to USD, opt for gold or another currency that could fall under the 1031 tax exchange laws. Funding a trust with dinar offers other options and tax implications. Everyone is in a different situation, so there is no one right answer. Seek the advice of a tax expert in your area to find what scenario will work best for you. Don't take the advice of anyone in a chat room or online!

[automag]

I just move to Europe last week. My IQD are in the States in a secure place with my friends who clued me in on the Dinar. Can I bring my IQD to Europe to cash it in in Euro's without having to pay tax in the US as well?

I am not a professional so take my info as that only....Information you should check out on your own...Having said that I am under the belief that an American citizen who moves to another country is still taxed on their income for 10 years after becoming a citizen in that other country. So moving to Pango-Pango ain't gonna help one darn bit. Sad but true. They gotcha coming and going I'm afraid. On the other hand I wouldn't want to give up my citizenship in the US for nothing but then I am unabashedly American and love my country so leaving is out of the question for myself. They are just stuck with me. So I guess I'm stuck with the IRS as well.

But do consult with a tax pro because I have no claim to being one. Hope that helps. But I am positive about this as the discussion of ex-pats has been in the news of late due to foriegn banks being pressured to report on Americans with bank accounts overseas......Under the Patriot Act...That the present administartion has seemingly embraced.

To paraphrase Ben Franklin..."Ye who gives up his security in the name of safety, Usually gives up both." Old Ben was a very smart man and way ahead of his time.

[ha ha]

An English guy l introduced into this told me about his intention of returning to England soon after RV. He is a resident in US only. Now, can he still be liable for paying US tax if he goes to his homeland for good ??

[Xuk]

i dont know about anyone else but i have heard so many conflicting stories....is it capitol gains or ordinary income? ther have been many members here who have spoke to a cpa and or tax attorney and it seems that a lot os cpa's are on a different page....i know each state will have different rates but as far as the feds are concerned what is it? we need a clear cut answer and not people interpreting the irs codes, so plz if someone knows the answer plz post with irs codes and reason why so the board is up to par on how we will be taxed if this happens....thank you in advance and im sure many of us will wait for the answer.

Be mindful of different opinions on this investment. You dont want to be expensed another 20% if there is no need and the hastle of dealing with the IRS if you find out you did over pay would be a nightmare in attaining a refund.

That said here is a link on US taxation of foreign currency gains or losses. http://www.maximadvisors.com/knowledge-library/international-tax-planning/US-Taxation-Foreign-Currency-Gains-Losses

What we need to be concerned with is scenerio number one. 1. The investor may purchase a foreign currency in exchange for U.S. dollars and hold the foreign currency as a capital asset. Any gain or loss would be a capital gain or loss.

Hope this helps.

[PAPATOM]

i dont know about anyone else but i have heard so many conflicting stories....is it capitol gains or ordinary income? ther have been many members here who have spoke to a cpa and or tax attorney and it seems that a lot os cpa's are on a different page....i know each state will have different rates but as far as the feds are concerned what is it? we need a clear cut answer and not people interpreting the irs codes, so plz if someone knows the answer plz post with irs codes and reason why so the board is up to par on how we will be taxed if this happens....thank you in advance and im sure many of us will wait for the answer.

in a word......HEAVILY

[automag]

An English guy l introduced into this told me about his intention of returning to England soon after RV. He is a resident in US only. Now, can he still be liable for paying US tax if he goes to his homeland for good ??

Based on the articles I have read about ex-pats abroad about the ability to tax after you have left.....I'd say yep. Now I would have no clue how that would work if the guy had a dual citizenship but if he was a US citizen only then he would be just like me. American and as such he gotta pay up too. But I seem to recall this ability to tax citizens and former citizens has been around for a long time however I'm not sure. I seem to think so....If I find out I'll let you know. The articles were in reference to how the Banking laws were effecting US citizens living abroad. Very interesting. Very scary. Read up if you are planning to move to Bora Bora. Things have changed.

[oma]

In the event the gain is taxed as ordinary income, what tax rate would apply to this gain for someone who had no other tax liability for this year or last year (i.e., SS is only source of income)?

[gman51]

Be mindful of different opinions on this investment. You dont want to be expensed another 20% if there is no need and the hastle of dealing with the IRS if you find out you did over pay would be a nightmare in attaining a refund.

That said here is a link on US taxation of foreign currency gains or losses. http://www.maximadvi...cy-Gains-Losses

What we need to be concerned with is scenerio number one. 1. The investor may purchase a foreign currency in exchange for U.S. dollars and hold the foreign currency as a capital asset. Any gain or loss would be a capital gain or loss.

Hope this helps.

I would add that the tax rate would depend on how long you are in the investment. Under 1 year is short term investment, and over 1 year is long term investment. Currently, short term= 30%-50%; Long term= 15%--30% At the beginning of next year these rates are scheduled to increase. Do not know what they will be. CPA, CFA, Masters Degree.

[Tnboy294]

Hi, First time poster. I decided to contact the IRS to find out first hand. After approximately 1hour and thirty minutes and speaking to 5 different people, this was the result: IRS PUB 525 pg 33. http://www.irs.gov/pub/irs-pdf/p525.pdf

Foreign currency transactions. If you have a gain on a personal foreign currency transaction because of changes in exchange rates, you do not have to include that gain in your income unless it is more than $200. If the gain is more than $200, report it as a capital gain.

The next question was Capital gains tax %: I finally spoke to someone in Collectible gains dept. She stated that it would be based on long term or short term and your income. She also stated she believed it would be a commodity and I would need to contact a CPA for further information on commodities. It appears as though the IRS is also unclear on how to tax us. I don't think I helped much. Hopefully a CPA here can advise if it is a commodity or how we should be taxed.