markst Posted January 28, 2010 Report Share Posted January 28, 2010 Here is a couple of articles that might help as far as taxes on our investment is concerned. http://www.maximadvisors.com/knowledge-library/international-tax-planning/US-Taxation-Foreign-Currency-Gains-LossesHere is a capital gain chart. http://en.wikipedia.org/wiki/Capital_gains_tax_in_the_United_StatesHope it helps. Link to comment Share on other sites More sharing options...
tzsbwn Posted January 28, 2010 Report Share Posted January 28, 2010 Still don't understand the difference, one paragraph says ordinary income and the other paragraph say capital gain. Link to comment Share on other sites More sharing options...
dinarhound Posted January 28, 2010 Report Share Posted January 28, 2010 My understanding is:If you purchased the dinar over 1 year ago (from date of cashing in), then you are subject to Long term Capitol Gains, 15%.If you purchased the dinar less than 1 year (from date of cashing in), then you are subject to Short term Capitol Gains, Income Bracket for the year you file, (possibly 35%)This is for the Feds, I do not have any info for the State you live in. I'm sure they will want their cut. Link to comment Share on other sites More sharing options...
lancer22 Posted January 28, 2010 Report Share Posted January 28, 2010 I thought a "Currency Exchange" is not taxed according to IRS code... comments please. Link to comment Share on other sites More sharing options...
excursion Posted January 28, 2010 Report Share Posted January 28, 2010 Currency Exchanges for $200 or less are not taxed. All other exchanges are taxable. Good simple expanation about the capital gains long term and short term above. It is correct. To get long term treatment you must hold the asset for over a year. One year plus a day or more. If you stand to make many dollars on this you should consult a professional for advise and preparing your tax return. It is well worth your while to pay a CPA or tax attorney to at least review your return before it is files. A few hundred dollars spent now could save thousands in penalties, interest or audit fees. Even though I am a CPA I will have my return reviewed by another CPA before I file it. Hate to make a mistake and pay to much tax, or too little and pay a penalty and interest. Link to comment Share on other sites More sharing options...
DStars Posted January 28, 2010 Report Share Posted January 28, 2010 Just to add for any newbies...it is important to have receipts for your dinar purchase(s). This is to prove to the IRS if you have held it for longer than one year. This could be the difference in paying 15% tax compared to 35% tax (plus state if applicable). Keep as much documentation about the purchase as possible. If you bought on Ebay, keep copies of the action, the Ebay invoice, the Paypal invoice, the Paypal payment, or the check you sent. If you bought from a dealer, how did you pay, by check, keep a copy of the check if possible. Some people have said they bought while stationed in the middle east and have no receipt, have you kept plane tickets to prove you were over there. Not sure if the IRS would accept this....but the idea is to have as much documentaition as possible. It is easiest to make copies of these things now, then later.As has been said, make sure you get "Profesional" advice, not "Net" advice. Link to comment Share on other sites More sharing options...
taxguy Posted January 29, 2010 Report Share Posted January 29, 2010 Still don't understand the difference, one paragraph says ordinary income and the other paragraph say capital gain.It means that whether the gain is ordinary income or capital gain depends on the reason why the taxapyer bought the dinar. For example, suppose the taxpayer is an antique dealer and bought $10,000 worth of Euros to be able to purchase antiques in France for resale. He doesn't find what he's looking for and resells the Euros at a currency exchange for $11,000, resulting in a $1,000 gain. This would be taxed as ordinary income because he bought the Euros for his business. On the other hand, if the taxpayer buys $10,000 worht of Euros as an investment, hoping that they will increase in value. When he sells them for $11,000, he has a capital gain because he bought the Euros as an investment (e.g., held the Euros as a capital asset).The vast majority of the people who visit sites like DV bought IQD as an investment and will get capital gain treatment. Always consult a tax advisor regarding important transactions.I hope this helps. Link to comment Share on other sites More sharing options...
tzsbwn Posted January 29, 2010 Report Share Posted January 29, 2010 Thanks Taxguy that is explained very well, even an idiot like me can understand it. Link to comment Share on other sites More sharing options...
ogle Posted January 29, 2010 Report Share Posted January 29, 2010 Last night Obama said that there will be no capital gains tax on small investments. What is a small investment ,and does that apply to dinar holders? Link to comment Share on other sites More sharing options...
tzsbwn Posted January 29, 2010 Report Share Posted January 29, 2010 ogle he said small business's not small investments. Link to comment Share on other sites More sharing options...
ogle Posted January 29, 2010 Report Share Posted January 29, 2010 Thank you for clearing that up for me. Link to comment Share on other sites More sharing options...
Duce Posted January 29, 2010 Report Share Posted January 29, 2010 According to my financial advisor, there are no taxes for exchanging currency. Only an exchange fee from the bank and/or dealer. Now, this was back in 2005, but a friend of mine that works with me in Iraq told me that he talks with several advisors and they also told him the same thing.....no taxes, only exchange fees. What about the people that do not have reciepts? How can you prove that you've held your investment over a year? I've had mine since 2005, but have no proof/reciepts. If there is indeed taxes, I really don't mind as I'll still make a very nice profit. Link to comment Share on other sites More sharing options...
meidem Posted January 29, 2010 Report Share Posted January 29, 2010 last night obama said that there will be no capital gains tax on small investments. What is a small investment ,and does that apply to dinar holders?when he says he is giving the little people something.......watch closley the other hand. Link to comment Share on other sites More sharing options...
wckdinar Posted January 29, 2010 Report Share Posted January 29, 2010 As always, check with a CPA that understands this type of investment. It would be worth hiring one from one of the major financial centers instead of a local one. They'll keep you on the right side of the tax evasion/tax avoidance issue. To put it simply, investment in a commodity (currency is a commodity investment) is subject to long term capital gains if held over a year. Link to comment Share on other sites More sharing options...
tzsbwn Posted January 29, 2010 Report Share Posted January 29, 2010 Duce, that is true up to $200 over that you are subject to taxes. Link to comment Share on other sites More sharing options...
gman51 Posted January 29, 2010 Report Share Posted January 29, 2010 Hey Excursion, my wife is a CPA with a masters in business and she also gets another CPA's opinion on our tax returns every year. In fact, they swap each other's returns to look them over. Penalties and Interest can be extremely high if you make a mistake. Cannot be too careful with the IRS. They can alter the course of your life if your not. Link to comment Share on other sites More sharing options...
mountanman Posted January 29, 2010 Report Share Posted January 29, 2010 My understanding is:If you purchased the dinar over 1 year ago (from date of cashing in), then you are subject to Long term Capitol Gains, 15%.If you purchased the dinar less than 1 year (from date of cashing in), then you are subject to Short term Capitol Gains, Income Bracket for the year you file, (possibly 35%)This is for the Feds, I do not have any info for the State you live in. I'm sure they will want their cut.Everything I have found on this says this is correct! Link to comment Share on other sites More sharing options...
darkstar Posted January 29, 2010 Report Share Posted January 29, 2010 Please understand, the tax on the "gain" of your dinar is levied ONLY in the course of an excise taxable activity of a "trade or business." The term "trade or business" is defined in 26 USC 7701(a)(26). In short, it includes the "performance of the functions of public office," in the "United States," not the Union, but the Federal Government. Subtitle A of the Federal Income Tax is an indirect excise tax on just that -- FEDERAL INCOME. People, you have been led astray by a very clever scheme for a very long time -- and witnessed folks "get in trouble" for trying to fight it when they don't do it 100% correctly. There is still a prohibition on direct taxes and capitations unless apportioned by Congress (see Art I, Sec 9, Cl 4 of your Constitution). That being said, the Federal Income Tax of the 16th Amendment is an INDIRECT TAX. This has been acknowledged over 60 times by the United States Supreme Court. If it's an INDIRECT TAX, then it is predicated on activity. The ACTIVITY that is taxed under Subitle A of the Federal Income Tax is public office in the United States Government -- a "trade or business." Subtitle C taxes "service" and "employment" INVOLVING the United States Government. 26 USC 3402(p)(3) is the mechanism used by the beneficiaries of this scheme to bring the private-sector worker into the scheme. Through a "voluntary" submission of a W-4, a PRIVATE-SECTOR WORKER earning non-taxable PERSONAL PAYMENTS by a PRIVATE-SECTOR PAYER, agrees, through that W-4 submission, to be TREATED AS IF HE WERE an "employee" being paid "wages" by an "employer." Not that you are an "employee" or that you do earn "wages," but that you "volunteer" to BE TREATED AS IF YOU WERE. This is how 99% if the country is brought into the tax scheme!The authors of the tax code have taken words understood by everyone, tied them STATUTORILY to excise taxable federal activity, and led the people to believe that earning money is a taxable event. Other dangerous terms that are VERY misleading are "compensation," "service," "salary," "tips," in addition to "employee," "employer," "wage," and "trade or business." Friends, as God as my witness I speak the truth here. But, I charge each and everyone of you to do your own due diligence. And then, before you go and refer yourself to a so-called "tax professional," why don't you take a few questions to acertain his or her level of knowledge. Ask your "tax professional" the following:1. What is the difference between a DIRECT TAX and an INDIRECT TAX?2. What is the definition of "trade or business?" Hint: 26 USC 7701(a)(26)3. What is the definition of "includes and including?" Hint: 26 USC 7701©Ask yourself the following: Why are these definitions worded this way? Why are these definitions not a little clearer? Would you be so gullible if your own children gave you such convoluted answers and explanations to your inquiries? If the entire nation is distrustful of the government, then why would you be so charitable towards the Internal Revnue Code, since the whole point of this code is to separate you from you property to pay for interest on the Federal Government's borrowing?And with the knowledge of what the terms "includes and including" really mean, ask your "tax professional" the following:4. What is the definition of "State?" Hint: 26 USC 7701(a)(10)5. What is the definition of "United States?" Hint: 26 USC 7701(a)(9)And then ask your "tax professional" what the Office of the Law Revision Council meant when the say, " . . . when used in a geographical sense." Ask them:6. WHEN is the term "United States" actually used in a "geographical sense?"7. When NOT used in a "geographical sense," which sense is in fact being used? Hint: "United States" also "includes" the Federal Government.For more discussion on this, please refer to the tax category on this forum. Link to comment Share on other sites More sharing options...
Mongo Posted January 29, 2010 Report Share Posted January 29, 2010 I think everyone is jumping the gun here on taxes. By the time the dinar RV's you can bet the GOV will have new tax laws concerning exchanging dinars to dollars so they can take the lions share from us. After all the GOV knows how to use our money better than we do. Give it all to them and they will supply to you acording to your needs................................BS Link to comment Share on other sites More sharing options...
wckdinar Posted January 29, 2010 Report Share Posted January 29, 2010 Having a great deal of contact with the IRS, all I can say is that are going to love you...... Link to comment Share on other sites More sharing options...
rt59 Posted January 29, 2010 Report Share Posted January 29, 2010 According to my financial advisor, there are no taxes for exchanging currency. Only an exchange fee from the bank and/or dealer. Now, this was back in 2005, but a friend of mine that works with me in Iraq told me that he talks with several advisors and they also told him the same thing.....no taxes, only exchange fees. What about the people that do not have reciepts? How can you prove that you've held your investment over a year? I've had mine since 2005, but have no proof/reciepts. If there is indeed taxes, I really don't mind as I'll still make a very nice profit.Duce, that is why he is an advisor and not a tax expert. See a professional tax expert, or you will be dealing with the IRS after the fact and you do not want that..they are taxable over $200 dollars and you will have to provide proof to determine their treatment as short term or long term. If you do not have proof they will be treated as short term and taxed per the tables at what ever rate your taxable income is (which includes any the IQD cashed in over $200). Long term (over a year) is really cheap, but you have to have proof of holding for over a year. Be careful, even CPA's can steer you wrong..I have personal experience with that! Some do not know what they are talking about and I am not slamming them..they need to keep up with changes and some do not. Link to comment Share on other sites More sharing options...
Wayne & Leah High Posted January 29, 2010 Report Share Posted January 29, 2010 our financial advisor told us that this type of gain and tax is a capitol gain no matter how long you have had your dinar...the tax rate is based on your income and it's anywhere from 1-15% Link to comment Share on other sites More sharing options...
Dazzleu Posted February 4, 2010 Report Share Posted February 4, 2010 Darkstar:Does filling out a fincen 104 tie you to doing buisness with united states b/c of using a ss # WHICH IN TURN MEANS YOU OWE TAXES? OR CAN YOU PUT ZERO'S IN PLACE OF SS# AND STILL MAKE THE TRANSACTION? ONLY ASKING B/C OF YOUR ADVICE. Link to comment Share on other sites More sharing options...
mrs millionaire Posted February 4, 2010 Report Share Posted February 4, 2010 Still don't understand the difference, one paragraph says ordinary income and the other paragraph say capital gain.Ordinary income - aka short-term capital gain. A short-term capital gain is any investment (in this case you purchase IQD) and have held it for a year or less. A short-term capital gain is taxed as ordinary income (like your W-2 income + short term capital gain income less adjustments to income = AGI Adjusted Gross Income less standard or itemized deductions less exemptions equal taxable income and you are taxed at x rate. For long term capital gains, you must hold the investment for more than 1 year. Then you'll have W-2 income + other income (not long-term capital gain income) less all the other stuff and that is taxed, then separately your long-term capital gains are taxed at a different LOWER rate. So, it is more beneficial for tax purposes for you to have held (or say that you held....hint hint) the IQD for more than 1 year before the RV happens Link to comment Share on other sites More sharing options...
Riley Posted February 4, 2010 Report Share Posted February 4, 2010 WOw - thanks to all for the bits of information... Link to comment Share on other sites More sharing options...
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