So Have We Figured out the Tax rate yet

[LS1Hawk]

I remember seeing a post arguing if this were to RV like everyone is praying we be hit with the capital gains tax, while the other side of the coin said it would be personal income tax, no different then what your taxed at the end of the year. Does anyone know for sure at this point?

[LaGrange]

I remember seeing a post arguing if this were to RV like everyone is praying we be hit with the capital gains tax, while the other side of the coin said it would be personal income tax, no different then what your taxed at the end of the year. Does anyone know for sure at this point?

Some claim that it is a simple exchange and therefore not taxed but I tend to believe it will fall under capital gains. JMHO

[aliciadogz]

I confuse too, some are saing gains and personal.Then,a friend of mine is saing both.I'm going to say gain, but, I'm going to tax lawyer, as soon as, this done with.

[Captjohn]

I remember seeing a post arguing if this were to RV like everyone is praying we be hit with the capital gains tax, while the other side of the coin said it would be personal income tax, no different then what your taxed at the end of the year. Does anyone know for sure at this point?

You will hear both sides of the story, however, when I presented the case (in historical detail) to my CPA, he stated that this type of gain on currency would be subject to the tax laws covering short and long-term capital gains. That is, if you hold the dinar over one-year, the efffective tax rate would be 15%....less that one-year would be at your personal rate. I strongly urge you to consult a CPA or tax attorney for personal guidance that addresses your tax situation.

[Rabel]

When U S $ are exchanged for currency in other countries, we get their equivalent in their currency. The same when their monies are exchanged here. It is simply a currency exchange, imo.

[easyrider]

my tax attorney said 15% all around for capital gains plus state and thats coming from a tax attorney. Doesnt matter if you held fpr a year or not but things could change

Edited June 27, 2011 by easyrider

[Bigboy0854]

We won't know for sure until after the RV.

Read the following from ExecConsult for more insight

http://dinarvets.com/forums/index.php?/topic/71490-execconsult-switching-sides/

[coldwarvet]

I think it's a function of who your accountant is, and how conversant he/she is with this type of transaction. I spoke with our corporate accountant on this issue and he characterized the tax situation as capital gains, meaning that if we held the IQD for a year, the tax would be 15%, otherwise it would be taxed at your income bracket. Check with your own accountant, since in the final analysis, that's who would be signing your return.