USMC_2674 Posted January 21, 2011 Report Share Posted January 21, 2011 I tithe 10% of my gross increase to my church. So, lets say that I have 1 million dinars. Right now that is worth $850. After the RV it is worth 1 milllion dollars US. After the RV I would tithe $100,000 US to the church. I would pay Uncle Sam his $350,000. I end up with $550,000. Since it is my understanding that we only pay tax to uncle sam when we cash in the Dinars... could I not give the church 100,000 NID as the tithe without converting it. Then I cash in 900,000 NID for $900,000. I pay uncle same 35%, but now it is $315,000. And I keep $585,000. Flaws in my thinking? Thanks in advance for any assistance. Semper Fidelis Link to comment Share on other sites More sharing options...
usndiver Posted January 21, 2011 Report Share Posted January 21, 2011 USMC, you answered your own question sir. Gift your IQD pre-RV to your church, this keeps it out of the IRS coffers. Link to comment Share on other sites More sharing options...
TechOps Posted January 21, 2011 Report Share Posted January 21, 2011 biblically the first scenario is the way to go..... one reference would be - Matthew 22:21 Link to comment Share on other sites More sharing options...
USMC_2674 Posted January 21, 2011 Author Report Share Posted January 21, 2011 USMC, you answered your own question sir. Gift your IQD pre-RV to your church, this keeps it out of the IRS coffers. When you say Pre-RV do you mean AFTER the currency has changed value, but before I exchange my Dinars for US$? When I hear "Gift your IQD pre-RV to your church" I think "Give the IQD to the church BEFORE the Dinar has changed value". IN which case the church is going to simply cash it NOW for an insulting amount of US Dollars (i.e. $85) Thanks for any clarification. Link to comment Share on other sites More sharing options...
Rome M Posted January 21, 2011 Report Share Posted January 21, 2011 Me personally, if I have 1 Mil USD I will take that 10% for my tithe and put it in a high interest yeilding account, such as a cd, but not quite stocks. Then, the interest that is made off this $100,000 will be given to my church every time I get it. The money will always be for the church, the interest AND the initial 10%. In 14 years, I would have given the Church $100,000 (the initial ammount I would have given at once) but the payments will keep coming long after that, for as long as my family breathes. This way, I can give even more than my 10% tithe. The church will receive a paycheck basically forever that far exceeds what I would have given. Link to comment Share on other sites More sharing options...
Plasticsman Posted January 21, 2011 Report Share Posted January 21, 2011 I have spoken to my church about this and we decided that I would just provide them with the Dinars and let the church cash them in since they don't pay taxes on the donation. I won't get a deduction for the money, but since I never cashed them in, I won't pay taxes on them either, and my 10-15% will go to the church. 1 Link to comment Share on other sites More sharing options...
ThePhantomRider Posted January 21, 2011 Report Share Posted January 21, 2011 I have spoken to my church about this and we decided that I would just provide them with the Dinars and let the church cash them in since they don't pay taxes on the donation. I won't get a deduction for the money, but since I never cashed them in, I won't pay taxes on them either, and my 10-15% will go to the church. That's the way to go IMO One could also purchase a fixed annuity with an income rider. If you fall in the age requirements, you could get a bonus on the deposit up to 10% and up to 8% compounding interest. Then you elect to receive income from that account and pass it to the church, the payment is guaranteed for life of you and your spouse. TPR Link to comment Share on other sites More sharing options...
fox Posted January 21, 2011 Report Share Posted January 21, 2011 I suggest giving the dinar to the church before the RV. However, you should explain the situation to the accountant (or whoever is in charge of the banking). Make sure they understand that they should wait to cash in until after the RV. You could even offer to take care of cashing in for them later. By doing this, you avoid paying taxes on the amount of dinar that you give to the church. I believe that I cannot outgive God and that I will reap what I sow. Link to comment Share on other sites More sharing options...
ExecConsult Posted March 1, 2011 Report Share Posted March 1, 2011 (edited) Allow me to interject a few thoughts: If you give dinar, you are still giving cash (have your CPA look at Rev. Rul. 69-63 - it is cash as long as it does not have any numismatic value like a coin collection). Some churches, like mine have policies about what they will/will not accept in donations. Check with your church. Though my church has branches worldwide, it will not accept foreign currency. That means in each of its branches it will only accept the functional currency of the country it is in. Therefore, I am using a Charitable Lead Trust to pay my tithing, fast offerings, and other offerings. Anyway, check with your church. (I have also been contacted by a foundation that will exchange the dinar for me and then make the donation on my behalf.) Now back to the question at hand: Since you are giving cash to a charity, the charity should issue you a receipt for a cash donation, denominated in USD and based on the exchange rate on that date the gift is received. No basis is involved. No holding period needs to be tracked. It is simply a cash donation. For examples on how this works, you can look at the Duke University, Idaho State University, & Howard University websites. They each have something similar to a "Ways to Give" link. Each has a paragraph that says something like, "We appreciate cash donations of any kind whether in US currency or foreign currency or a check drawn on a foreign bank." Each goes on to state what I have already stated above about giving a receipt for a the cash donation denominated in USD based on the exchange rate on the date of the gift. What is the best thing to do? Wait for the RV. After the RV give the dinar to the charity. Section 988 recognizes income on disposition of your foreign currency. If you dispose of the dinar by gift, you have no accession to wealth and no income to recognize. You have avoided all taxable gain on the gifted dinar but you will still have a deductible charitable contribution for the full exchange value of the dinar as of the date the charity receives the gift. I hope this is helpful. Best of Blessings, Mark P.S. for a bigger discussion on this you might refer to a post that I did: Edited March 1, 2011 by ExecConsult Link to comment Share on other sites More sharing options...
Happy Man Posted March 14, 2011 Report Share Posted March 14, 2011 I tithe 10% of my gross increase to my church. So, lets say that I have 1 million dinars. Right now that is worth $850. After the RV it is worth 1 milllion dollars US. After the RV I would tithe $100,000 US to the church. I would pay Uncle Sam his $350,000. I end up with $550,000. Since it is my understanding that we only pay tax to uncle sam when we cash in the Dinars... could I not give the church 100,000 NID as the tithe without converting it. Then I cash in 900,000 NID for $900,000. I pay uncle same 35%, but now it is $315,000. And I keep $585,000. Flaws in my thinking? Thanks in advance for any assistance. Semper Fidelis There is: 1000000 - 10% -----> 900000 and 100000 to the church 900000*.65 = 585000 to you and 315000 to uncle sam. It should be the same that you do it post or pre RV at least in canada In Canada in depends on if you will be charged as capital gain or revenue because if it is as capital gain then you are definitly better off as gifting after RV Link to comment Share on other sites More sharing options...
roux Posted March 14, 2011 Report Share Posted March 14, 2011 A couple of dinar investors in our church bought dinar for the church. Our church council president has the physical dinar right now. When the rv comes they will be cashed in in the church's name, wired to the church's bank acount, and no taxes paid. The investors have signed a form (notarized) that the dinar are a gift. I think everyone wins. the gift is 500,000 dinar and we believe this will provide security for our little church for quite awhile. Link to comment Share on other sites More sharing options...
luvcats17 Posted March 14, 2011 Report Share Posted March 14, 2011 A tithe is 10% given for the money that you earned from work. You probably already tithed from the money that you earned from work and what remained was what you used to buy your dinar. The money that you will make from investing in the dinar is really a blessing from God and not something that you earned from working. God wants us to invest and teaches us to do this when Jesus speaks about the Talents twice in the New testament. Jesus was teaching us how to prosper. Therefore, what is appropriate to give is an offering which is completely different from the tithe. An offering can be less than 10% or more than 10%. You can pray about it and see what you sense in your spirit to give as an offering. There is no right amount to give; just give the amount that you sense in your heart. God will bless whatever amount you decide to give so that you will have an increase in the future. =) Link to comment Share on other sites More sharing options...
BanG Posted March 14, 2011 Report Share Posted March 14, 2011 We all know the rules right? The Lord gets the first 10% off the top before anyone else, then the IRS can have theirs. For the Lords part I do this with a peaceful heart and a willing soul, as for the IRS well that is different....LOLOL. Peace. 1 Link to comment Share on other sites More sharing options...
luvcats17 Posted March 15, 2011 Report Share Posted March 15, 2011 Hi, Bang. Left you a message under Soji's thread in response to the comment you left me in that thread. So, since I still have it, I will paste what I wrote you there: I just saw your comment when I commented on Soji. I am very proud to be the wife of a Marine. I can honestly say that it has truly changed my life not realizing what I was getting into when I first got married to Jon. We were first stationed in Quantico for TBS and then moved to Pensacola for flight school. Went to Jacksonville where Jon was stationed at New River flying the CH 46. Had my first experience with war when he went to Desert Storm. Moved back to Pensacola where he was stationed at Whiting Field as a flight instructor. We lived in the Pace, FL area for 12 years. Before moving to NJ, Jon was activated to fight in Iraq. We are now in Mays Landing, NJ where Jon is a flight inspector for the FAA. He is a Col in the Marine Corps Reserves. To this day, it is still exciting and very rewarding. I have a great love of God and our country. I am very grateful for your service. You are truly one of the few, the proud, a Marine. Blessings to your wife and children. Please let her know that she too is a great soldier herself. I will keep you all in my thoughts and prayers. Are you overseas at this time? Please feel free to keep in touch and let us know how we can pray for you. "The Lord bless you and watch, guard, and keep you; The Lord make His face to shine upon and enlighten you and be gracious (kind, merciful, and giving favor) to you; The Lord lift up His [approving] countenance upon you and give you peace (tranquility of heart and life continually)." Numbers 6:24-26 Amplified Version. Be blessed! Semper Fi, Ana Link to comment Share on other sites More sharing options...
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