Passing Dinar To Friends And Taxes

[funtime]

I imagine that I'm not alone in wanting to help some friends in this scenario. I have a few friends that can only afford to get just a few dinar like 10,000 to 50,000 and can't seem to get it for themselves for various reasons.

Assuming everybody wants to pay their fair share of taxes, how does the following scenario play out…?

Let's say I place a 100,000 dinar order in my name. After it arrives, I split it up among 2 friends - 50,000 each and they pay me back each 1/2 of the total order (like 100.00 each for a 200.00 order - no dinar for me).

In this scenario, who is responsible for paying the taxes after RV? I'd assume it was just each of them, as I did not profit from the transaction…

Could it happen where the IRS says post RV:

1 - you bought it - you pay tax for it…

2 - you bought it - you pay tax for it… & the other 2 people can get also taxed with double dipping from the government?

3 - even though you bought it, since you sold it for 0.00 profit prior to RV - so you are not responsible for it, the other 2 people are.

Choice 3 seems the best - most fair outcome, but I'm only guessing at these possible outcomes, so that is why I'd like to hear some opinions on this.

Thanks in advance.

[widowmaker]

great question

[nafarren]

my understanding is that taxes are paid by whomever cashes in.

[muchodinaro]

The answer is number 3. I've done exactly what you have stated. I gave my brothers, my mother and father, my sons, and all my nephews dinar for christmas. I was going to cash in the dinar for them and then just give them the after tax value, but then I was thinking that if they take their tax free money, and they deposit the money in a bank, they will have to show that as income on their next years tax return. To me that sounds like double taxation. I may just tell them to buy a safe and keep the money there or I'll just let them cash in their own dinar and pay the taxes accordingly.

[Carrello]

my understanding is that taxes are paid by whomever cashes in.

Correct.

[funtime]

Glad to hear it!

Question : just to be sure, is this tax info printed anywhere / URL's so that we can all know "it's official"?

( I'd hate to find out later that this was not the case... )

[caleb08]

I also bought my daughter some dinars and I had her open a checking account at Capital one. She lives in Texas and I live in Louisiana where I have her dinars. What I was going to do is cash hers in for her and put it in her checking account so she can pay her own taxes on it. Is this OK?

[KramerDinar]

I also bought my daughter some dinars and I had her open a checking account at Capital one. She lives in Texas and I live in Louisiana where I have her dinars. What I was going to do is cash hers in for her and put it in her checking account so she can pay her own taxes on it. Is this OK?

The taxes are going to be based on who cashes in as you will need to fill out the forms, present you ID, etc. No matter who has the dinar, in the end, whoever is the one cashing it in will pay the taxes, so in your case, though they are going into her account, you will be taxed on them. Now in the event of an RV, you can gift her $12K tax free. Also, if money goes into a IRA or Roth, that would be tax free as well, but if touched early you would pay a hefty penalty. Best bet is to have the taxes taken at the time of cash in so you don't file it the following year. One less thing to worry about where you would be a year from now.