Warka and Taxes

[M.A.S.]

I took some good advice and opened up a Warka account. My plan is to let the Dinar in my Warka account just sit there for awhile, post RV. Just sort of forget about it and watch the value rise until I need it one day. Once there is a RV the value of that Dinar in USD greatly increases.My question is: what are my tax ramifications and or reporting obligations to the IRS regarding my Warka IQD once there is a Revalue?

Do I need to report anything at all if I simply let the Dinar in the account sit there, post RV?

Do I need to inform the IRS post RV that I am now in possession of a lot more valuable DInar than I had 2 months ago?

Am I correct in assuming that the taxable event only happens once I exchange that DInar to US dollars? And that at that time, once there is an exchange of currency, then I am responsible for paying tax on it? As long as I don't exchange the DInar to anything else, post RV, there is no taxable event, right?

thank you, anyone for the input and advice

I appreciate it very much.

M.A.S.

[mqchau]

very good question.

anyone? I would like to know also.

[chara55]

IMO You won't have to worry about U.S. taxes untill the exchanged Dinar into U.S. dollars hit's U.S. soil, as far as Iraqs taxes go I have no clue.

God Bless

Goooo Rvvvvvvvv

[HawaiianGal]

I'm no expert. This is not advice, however, I remember reading some tax forms (as I do research on this) where you put down how much you have in other currencies and equivalent amount in US dollars I think. You are also supposed to put down what you have in gold and silver as well (although I don't think the average person does.)

[kosman]

I took some good advice and opened up a Warka account. My plan is to let the Dinar in my Warka account just sit there for awhile, post RV. Just sort of forget about it and watch the value rise until I need it one day. Once there is a RV the value of that Dinar in USD greatly increases.My question is: what are my tax ramifications and or reporting obligations to the IRS regarding my Warka IQD once there is a Revalue?

Do I need to report anything at all if I simply let the Dinar in the account sit there, post RV?

Do I need to inform the IRS post RV that I am now in possession of a lot more valuable DInar than I had 2 months ago?

Am I correct in assuming that the taxable event only happens once I exchange that DInar to US dollars? And that at that time, once there is an exchange of currency, then I am responsible for paying tax on it? As long as I don't exchange the DInar to anything else, post RV, there is no taxable event, right?

thank you, anyone for the input and advice

I appreciate it very much.

M.A.S.

Just my opinion maybe someone else will have better thoughts. I think the magic number is 10,000 USD or its equivelent in foreign currency. If you have a Warka account that has more than 10,000USD, it is requried that you report the ownership of the account. That is where the RV comes in. Your account may be worth less than 10K today but worth considerably more tomorrow. I plan to leave most of my dinar in Warka post RV for a while, but I will have to report the interest made at its USD equivelent. Not much of a liability at 1170 dinar to dollar, but considerable at 1:1 and even higher rates. I will gladly pay the taxes and be thankful for having such problems.

As an example....say you have 1 million dinar in the bank. Today that is worth about 850 USD. That does not even ruffle an IRS feather. But say it revalues at $3.10, about its post sanction rate. Now your bank account is worth $3,100,000 USD. Severe penalties for not reportinging the ownership let alone not paying your taxes due on it. Penalties could include fines, interest, penalties, seizure of assets or jail time. While the taxes due can vary from expert to expert and you will never get the same answer twice. The best thing you can do is be able to show due dilligence in taking care of your obligations. Does anyone have an opinion on Tax Free Municipal Bonds Post RV?

Just my opinion based on personal experience and I hope someone will either correct or confirm the validity.

Mostly today my thoughts are not on the dinar for a change. Today is September 11th. Ironically, it is that horrible day which leads us to the potential fortune we may soon receive. I watched the sun rise over the moutains separating Pakistan and Afghanistan. I forgot all my personal problems and discomforts and remembered why we are still here. I firmly believe it is the right thing to do and we should not pull out of anywhere until there is no doubt that area is no longer a threat to the USA. If there is any question about it, we should err on the side of safety for the USA. If anyone does not think we should be here, just tell the bad guys to knock it off and we can go home. We are one nation under God no matter what some people say. God Bless America and God Bless all of you and your families. And God Bless our enemies that they may see the true meaning of their holy book and end their violent ways.

Edited September 11, 2011 by kosman

[82Corp.]

M.A.S. to answer your question, YES! You have to compete and submit prior to June 30 every year ORS Form TD F 90-22.1, REPORT OF FOREIGN BANK AND FINANCIAL ACCOUNTS. If you research the IRS web or have a Knowledgeable accountant it's most helpful. Best RV wishes.

[Ridewithme38]

say you have 1 million dinar in the bank. Today that is worth about 850 USD. That does not even ruffle an IRS feather. But say it revalues at $3.10, about its post sanction rate. Now your bank account is worth $3,100,000 USD.

I love Warka, finding a high interest US accounting is becoming harder and harder....I personally don't believe in a RV, but i'm going to use your numbers...Right now Warka is giving 7% interest on its basic savings accounts and 10.5% on 12 month CD's...they pay interest every 6 months...that 3,100,000 is $46,600, every 6 months at 7%...if you continue to live a modest life after a RV, you can live off the interest of what was originally $850...

[sugga10]

You will have to disclose and pay taxes if it reaches $10K+ in US equivlant value. check the IRS website.

[ExecConsult]

Sorry this is so late in coming. You can find a fairly simple article on the matter here:

http://taxes.about.com/od/preparingyourtaxes/a/TDF90221.htm

Then you can find the actual forma and instructions from the IRS here:

http://www.irs.gov/pub/irs-pdf/f90221.pdf

These two links should be able to answer any questions that have not already been answered.

Summary breaking it down - you need to report all foreign accounts which have an asset value in excess of $10,000 any time during the year. You will report any income on those accounts on your 1040 based on the nature of the income. Interest income is reported on Schedule B.

Best of Blessings,

Mark

[Ridewithme38]

Summary breaking it down - you need to report all foreign accounts which have an asset value in excess of $10,000 any time during the year. You will report any income on those accounts on your 1040 based on the nature of the income. Interest income is reported on Schedule B.

Best of Blessings,

Mark

My understanding of this was that it's not actually considered income till its been converted Wired from Warka to a US bank account and converted to USD...Do you think this is accurate

[War Eagle]

I am NOT a tax attorney,but my guess that it would be treated just like a reval in the US.If held over a year-long term capital gain; under a year short term.If you have over $10,000 dollars in Warka.you must report it to the US gov. Fine is 1/2 half of your assets PLUS 5 YEARS in prison if judge deems it's on purpose.Warka HAS signed The Patriot Act,and I would almost guarantee everything IS reported to Homeland Security,and then to the IRS.