Banks taking 15% for IRS?

[THINK.....]

I have seen mention here and there lately of banks possibly taking 15% for IRS at the time of exchange. One even said that the IRS that is didn’t want to bother with purchase dates and receipts. I find this highly unlikely. With hundreds of millions of dollars in capital gains tax there for the taking, I can’t imagine that the Gestapo, er ah, I mean the IRS, would not want to bother looking at receipts. Remember these are the people who would take 6 months and a dozen agents to pry another nickel out of someone’s grandmother.

If anyone has any real intel on this I would like to see it. Please, this is not the rumors section so if it comes from your room mate’s cousin’s neighbor’s brother’s boss’s dog don’t bother. If you can tell me your source but have to shoot me, ditto.

RV there yet? RV there yet?

[dinard9888]

Interesting, when you ask for no bs, you get nothing.

[Mountain man]

I don't think anything will happen at the bank besides the FEN form being completed. I would be ready to present proof that we have held our dinars longer than 12 months to qualify for long term gains tax at the end of the year.

I would be very excited to see a regulation from the IRS concerning the dinar. No way that this will happen until after the rv.

[THINK.....]

Interesting, when you ask for no bs, you get nothing.

I prefer nothing to BS anytime.

RV there yet? RV there yet?

[DaveJen]

Have addressed this several times before but here goes again. When you cash in with any one time large sum, wether it be a lottery winning, at a Vegas Casino, or a Dianr trade in the banks will be required to withhold what is referred to as a "Backup Withholding." All this is a portion of the overall tax that will be due at the point in time that your annual return is filed. This withholding amount has fluctuated over the years from 10-15%. It is not an additional tax, it is not a luxury tax, it simply is a payment against the annual tax that will be do at the point in time that the annual return is filed. Most banks will give you the option of paying it at that point or not.

It is intended as a benefit to the taxpayer, because the law stipulates that you must have 80% of your taxes paid by the close of your tax year. This is normally December 31. If you do not have 80% of your tax paid at this point you may be subject to an underpayment penalty.

Hope this helps.

One additional point. You will not be required to show purchase and sales dates at the bank. They do not care. They do not determine capital gains. This will have to be done at the point in time you are audited if you claim long term capital gains. And I can assure you, you will be audited if you are the typical dinar purchaser. If you claim long term cap gains when you should have claimed short term and you are audited, you will be subjected to penalties and interest. And if the IRS determines it was an intentional fraudulent return you could be subject to prosecution.

The only way to avoid taxes is to reinvest your increase into other investments. That will defer your taxes until such time you take the gain. This is not a bad tax strat in that you take your gains in the amount you want for each year and only pay tax on the amount you take out for that year.

The only way to avoid taxes is to reinvest your increase into other investments. That will defer your taxes until such time you take the gain. This is not a bad tax strat in that you take your gains in the amount you want for each year and only pay tax on the amount you take out for that year.

[Mongo]

I have seen mention here and there lately of banks possibly taking 15% for IRS at the time of exchange. One even said that the IRS that is didn’t want to bother with purchase dates and receipts. I find this highly unlikely. With hundreds of millions of dollars in capital gains tax there for the taking, I can’t imagine that the Gestapo, er ah, I mean the IRS, would not want to bother looking at receipts. Remember these are the people who would take 6 months and a dozen agents to pry another nickel out of someone’s grandmother.

If anyone has any real intel on this I would like to see it. Please, this is not the rumors section so if it comes from your room mate’s cousin’s neighbor’s brother’s boss’s dog don’t bother. If you can tell me your source but have to shoot me, ditto.

RV there yet? RV there yet?

We can't even get any REAL INTEL on the DINAR and you want real intel on the taxes paid out on exchange of said Dinar......................all I can do is shake my head

[Bigboy0854]

Have addressed this several times before but here goes again. When you cash in with any one time large sum, wether it be a lottery winning, at a Vegas Casino, or a Dianr trade in the banks will be required to withhold what is referred to as a "Backup Withholding." All this is a portion of the overall tax that will be due at the point in time that your annual return is filed. This withholding amount has fluctuated over the years from 10-15%. It is not an additional tax, it is not a luxury tax, it simply is a payment against the annual tax that will be do at the point in time that the annual return is filed. Most banks will give you the option of paying it at that point or not.

It is intended as a benefit to the taxpayer, because the law stipulates that you must have 80% of your taxes paid by the close of your tax year. This is normally December 31. If you do not have 80% of your tax paid at this point you may be subject to an underpayment penalty.

Hope this helps.

One additional point. You will not be required to show purchase and sales dates at the bank. They do not care. They do not determine capital gains. This will have to be done at the point in time you are audited if you claim long term capital gains. And I can assure you, you will be audited if you are the typical dinar purchaser. If you claim long term cap gains when you should have claimed short term and you are audited, you will be subjected to penalties and interest. And if the IRS determines it was an intentional fraudulent return you could be subject to prosecution.

The only way to avoid taxes is to reinvest your increase into other investments. That will defer your taxes until such time you take the gain. This is not a bad tax strat in that you take your gains in the amount you want for each year and only pay tax on the amount you take out for that year.

The only way to avoid taxes is to reinvest your increase into other investments. That will defer your taxes until such time you take the gain. This is not a bad tax strat in that you take your gains in the amount you want for each year and only pay tax on the amount you take out for that year.

DaveJen - I am a CPA - you are incorrect when stating you can defer taxes by reinvesting your increase. You have a taxable event at the time you exchange the IQD into USD. This is true for most investments. For example say I have a 100 shares of stock that is sold at a gain. I decide to take the proceeds from the sale and buy more stock. I must pay taxes on the gain from the initial sale.

[Pitcher]

This is a possible extraordinary event for us common folk. Expect new tax laws that will be ever bit as

extraordinary. I'm planning on a 50-70% tax rate much like a lottery winner. If you think you're gonna get by with 15% long term capital gain taxes your'e dreaming in my opinion.

[new york kevin]

Brothers and Sisters:

When it comes to cashing in and saving money read Adam M free download Cash In Guide. There Adam has stated that he has made many contacts and had many negotiations with others and wants to share this info. Specifically, he has promises from Ali of Dinar trader fame, see page 5 of this download, to cash in dinar for us for $150.00 per million dinar. Quite a savings since banks are rumored to be considering a charge of 1 - 3% per million dinar. At a rv/ri of $1.00 this would be a charge of $10k to $30K per million for the privilage. As far as taxes is concerned there is great info regarding tax plannig, Nevada corporations, Tax Attorneys, CFP - Certified Financial Planners, CPA's and more in the VIP. All with the intention of legally saving money on taxes. As well as setting up Estate planning and post rv/ri investment opportunities. There is a nominal charge for joining the VIP but I feel it is well worth it. It expalins complex matters to those that presently don't have that info. Including referals to tax law firms that Sir Adam has negotiated with where we in the VIP essentially will get a group rate. You may only have to decide whether you can take advantage of VIP's legal possibilities before or after the rv/ri. Personally I must wait to move after the rv/ri cuz I have no extra cash right now. I plan to charge all the costs after the rv/ri, Tax Attorney's, CPA's, CFP (Certified Financial Planners), et al. Then once is all set up, then I will cash in my dinar, tithe by giving the appropriate amount to my church in dinar and let them cash it in and minimise the tax costs via their 503.1 status (or is it 501), pay off the charge card, the house and seek proper investment advice.

Go RVVVVVVVVV

[Oscar2]

Ali's $150 fee is at the BUY rate. There is still a spread, just like your bank. Shop around still as it may not be the best rate. (ex. your bank may do it at the buy rate if they want your business).

[Bigboy0854]

Ali's $150 fee is at the BUY rate. There is still a spread, just like your bank. Shop around still as it may not be the best rate. (ex. your bank may do it at the buy rate if they want your business).

Ali has stated he will use the CBI rate - not a spread.

[jeepguy]

hey big boy ------your a---c/p/a------can i use you when it comes time ? aways good to have a books guy lol peace

[Tom 777]

With the small amount of people that are dealing with dinars the IRS will go after all they can get their hands on. To really think that they are only going after a small precentage because they aren't wanting to mess with the hassle is insane.

[Bigboy0854]

Its too early to determine how the Feds will tax any gain. They may write new tax laws for this special event.

Edited May 1, 2011 by Bigboy0854