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The Facts About The Capital Gains Tax


hozer
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wikipedia CAN be edited by anyone true, BUT the people at wikipedia company fact check it before they let any changes go live.

you dont have to worry about cap gains tax anyway. I have talked to many tax industry people (cpa, tax attorney) and they all say it will be taxed as normal income. at the end of the year you will just add your dinar profit on top of what you made working your job. Remember, this is NOT an investment like stocks or bonds.

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That is debatable, I spoke with 2 tax pros and 1 said Cap Gain the other said regular income. There is a post somewhere on this website where a tax guy actually got the exception rule from the IRS stating it would be taxed as cap gains. Exception rule because the law can be interpreted both ways!

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Second, if they can understand these publications then they need to start reading up on this. Publication 550, page 40, paragraph titled “Foreign Currency Contract” is the place to start. I have been informed by the IRS that this will not be Capital Gains and will not be taxed as such. Anyone reporting this on Schedule D with their annual tax return will have a 99.9% chance of being audited.

this comes from a level 2 tax specialist that says the IRS told him this directly.

call the IRS yourself and see what they tell you

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I wonder if the IRS knows for sure..... depends on who you talk to and what day of the week it is..... according to the currency laws that I have read, anything over a $ 200.00 profit when cashing in a currency will be taxed as a capital gain..... However, I would not put it pass the government to make sure that we all believe it will be regular income.... When it happens, I will worry about it then, let's have an RV first....

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they will check it trust me, and if its not true then they will remove it

they may not check it before it goes live as i thought but they do check it eventually

That is debatable, I spoke with 2 tax pros and 1 said Cap Gain the other said regular income. There is a post somewhere on this website where a tax guy actually got the exception rule from the IRS stating it would be taxed as cap gains. Exception rule because the law can be interpreted both ways!

I am betting that when we are talking this much money, it will come out almost the same percentage of tax you will pay cap gain or reg income!

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I wonder if the IRS knows for sure..... depends on who you talk to and what day of the week it is..... according to the currency laws that I have read, anything over a $ 200.00 profit when cashing in a currency will be taxed as a capital gain..... However, I would not put it pass the government to make sure that we all believe it will be regular income.... When it happens, I will worry about it then, let's have an RV first....

If the IRS dot know then who does????????? arent they the ones who make the tax laws??? or at least enforce them????

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wikipedia CAN be edited by anyone true, BUT the people at wikipedia company fact check it before they let any changes go live.

you dont have to worry about cap gains tax anyway. I have talked to many tax industry people (cpa, tax attorney) and they all say it will be taxed as normal income. at the end of the year you will just add your dinar profit on top of what you made working your job. Remember, this is NOT an investment like stocks or bonds.

INFO DIRECTLY FROM THE IRS:

My sister is a 25 year employee at the IRS and she states the Ferderal Tax Laws that are currently in place state that investment earnings under 1 will be subject to a 35% Capital Gains Tax. Investment earnings over 1 year will be subject to 15% Capital Gains Tax. *THIS IS CONFIRMED and is the current Tax Law. Also, Obama is currently working on increasing the Capital Gains tax VERY SOON (Increased Tax rate unknown at this time).

The IRS doesn't care what any other "financial professionals" are stating, they are following the Federal Tax Laws. The IRS considers Foreign Currency Purchases an "investment" that will be subject to Capital Gains Tax Laws.

I hope this helps. If you are still unsure, you can call the IRS yourself.

GR

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INFO DIRECTLY FROM THE IRS:

My sister is a 25 year employee at the IRS and she states the Ferderal Tax Laws that are currently in place state that investment earnings under 1 will be subject to a 35% Capital Gains Tax. Investment earnings over 1 year will be subject to 15% Capital Gains Tax. *THIS IS CONFIRMED and is the current Tax Law. Also, Obama is currently working on increasing the Capital Gains tax VERY SOON (Increased Tax rate unknown at this time).

The IRS doesn't care what any other "financial professionals" are stating, they are following the Federal Tax Laws. The IRS considers Foreign Currency Purchases an "investment" that will be subject to Capital Gains Tax Laws.

I hope this helps. If you are still unsure, you can call the IRS yourself.

GR

Yes that would be true IF this was considered an investment. I really do not believe it is... Ask your sister about Publication 550, page 40, paragraph titled “Foreign Currency Contract” and please get back with me. I am not being sarcastic. I really am interested in what she has to say about it.

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Yes that would be true IF this was considered an investment. I really do not believe it is... Ask your sister about Publication 550, page 40, paragraph titled “Foreign Currency Contract” and please get back with me. I am not being sarcastic. I really am interested in what she has to say about it.

Again, what I have stated in my post IS frome the IRS and they have the last and final say in this. I don't like it either, but this IS fact on how the IRS is going to tax our investment.

This Has been confirmed with her superiors, this is NOT my sisters opinion this IS what the IRS is stating! You can call them and check it out for yourself.

On a personal note/opinion, I also believe Obama will get everything he can out of this investment

GR

Edited by Ghost Rider
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Again, what I have stated in my post IS frome the IRS and they have the last and final say in this. I don't like it either, but this IS fact on how the IRS is going to tax our investment.

GR

you are not reading my post... your numbers are correct on INVESTMENTS. what is in question is will the IRS consider possessing a currency that just so happened to go up in value is considered an investment or not. Please ask you sister about Publication 550, page 40, paragraph titled “Foreign Currency Contract” and get back with me.

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INFO DIRECTLY FROM THE IRS:

My sister is a 25 year employee at the IRS and she states the Ferderal Tax Laws that are currently in place state that investment earnings under 1 will be subject to a 35% Capital Gains Tax. Investment earnings over 1 year will be subject to 15% Capital Gains Tax. *THIS IS CONFIRMED and is the current Tax Law. Also, Obama is currently working on increasing the Capital Gains tax VERY SOON (Increased Tax rate unknown at this time).

The IRS doesn't care what any other "financial professionals" are stating, they are following the Federal Tax Laws. The IRS considers Foreign Currency Purchases an "investment" that will be subject to Capital Gains Tax Laws.

I hope this helps. If you are still unsure, you can call the IRS yourself.

GR

I am going with your sister on this one. Just pay your 35% when you cash in and figure it out later. Better to be safe than sorry ( Or run and be an ex-pat!)

INFO DIRECTLY FROM THE IRS:

My sister is a 25 year employee at the IRS and she states the Ferderal Tax Laws that are currently in place state that investment earnings under 1 will be subject to a 35% Capital Gains Tax. Investment earnings over 1 year will be subject to 15% Capital Gains Tax. *THIS IS CONFIRMED and is the current Tax Law. Also, Obama is currently working on increasing the Capital Gains tax VERY SOON (Increased Tax rate unknown at this time).

The IRS doesn't care what any other "financial professionals" are stating, they are following the Federal Tax Laws. The IRS considers Foreign Currency Purchases an "investment" that will be subject to Capital Gains Tax Laws.

I hope this helps. If you are still unsure, you can call the IRS yourself.

GR

am going with your sister on this one. Just pay your 35% when you cash in and figure it out later. Better to be safe than sorry ( Or run and be an ex-pat!) +1.

Edited by Brudog
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you are not reading my post... your numbers are correct on INVESTMENTS. what is in question is will the IRS consider possessing a currency that just so happened to go up in value is considered an investment or not. Please ask you sister about Publication 550, page 40, paragraph titled “Foreign Currency Contract” and get back with me.

I AM READING YOUR POST.

I have read what you have read!!!! That is why I got the inside scoop as to how the IRS is going to tax our invetment. I cannot chage the way the IRS is going to look at this and neither can my sister. I just wanted to post the FACT as to not mislead anyone and get them in trouble by accepting the wrong advise. Again, call the IRS for youself and ask for a MANAGER and get the info for yourself if you doubt the validity of what I am saying.

GR

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why do you keep avoiding my question about Publication 550, page 40, paragraph titled “Foreign Currency Contract”

and my info came from the IRS as well that it will be taxed as income

Because it doesn't matter. Why discuss something if the IRS is looking at this differently, it's not going to change a thing. I catually agree with your first assessment as I felt the same way, BUT, the IRS is NOT looking at our DINAR purchases, holdings and revalues other than an investment period. I'm not sure with whom you spoke with but you were not given the correct standing that the Federal Government has on subject. I would highly suggest you dig into this a lot deeper than just talking to the first person that answers the phone at the IRS. I'm really trying to do my best here. I do not have any more input here.

Respectfully,

GR

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ok I will call the IRS again and ask to speak with a manager and ask them this question.. I came into possession of some currency that I believe will soon revalue to a high rate than it is currently, which will end up getting me more money than i originality paid for it. is this "profit" considered an investment or normal income and I will see what they say

the manager I spoke with Mr. graham said he is looking into and that he doesnt know if that is even something they can address for me.. currently on hold while he checks into it

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Yes that would be true IF this was considered an investment. I really do not believe it is... Ask your sister about Publication 550, page 40, paragraph titled “Foreign Currency Contract” and please get back with me. I am not being sarcastic. I really am interested in what she has to say about it.

It is purely an investment. We aren't using the currency to go to Iraq and have a great old time. We're purely investing in the currency. Income tax is a tax on the money you earn for working.

As always the tax laws are confusing but in my opinion it should be capital gains. I'm going to get it in writing before I do my taxes.

Of course I'll worry about it after they actually do whatever they plan on doing to the currency.

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so far he said all he can see is that it has to be converted back into USD before its reported on tax return and that is issue is to complex to give me a firm answer. He advised me to consult a tax professional on the matter. he offered to look one more place for me, on hold again currently

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well he could not do anything except refer me to Publication 550, page 40, paragraph titled “Foreign Currency Contract”

and to take that to a tax attorney and he will tell you how to report it Although from reading it myself I found this so far

Special rules apply to certain foreign currency transactions. These transactions may

result in ordinary gain or loss treatment.

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well he could not do anything except refer me to Publication 550, page 40, paragraph titled “Foreign Currency Contract”

and to take that to a tax attorney and he will tell you how to report it Although from reading it myself I found this so far

Special rules apply to certain foreign currency transactions. These transactions may

result in ordinary gain or loss treatment.

The Federal Government and the contractor "IRS" has final say will dictate what we pay in taxes not any attorney, CPA or otherwise. I stand by what my sister has stated as a case investigator with the IRS. She has always been correct regarding the tax related answers she has given me regarding Federal Tax questions. You do what you feel you need to do.

GR

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I say. I'll go with tech guy on taxes! all you others go a head and send irs 40% of your money they need it, to give away to some more dead beats or let some body steal it. dont worry about it anyway the biggest tax cheat in U.S. is sec. of treasury. if you get caught just use his excuse and pay later! GO RV!!!

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