dumb question

[joseroque]

Income is always income. Whether you trade in for $1000.00 or $10,000, taxes are still due. You have to count all of your income (from work, interests, pensions, etc.) to figure what you owe. You can hold on to the higher dinar bills but you will still have to pay taxes at some point and based on how you do it, it could 15% to 35%. You can check with a CPA or tax attorney to set you straight on this.

[speculatorsRIDE]

Its not about our rights following us, its about what is on paper that protects funds in the CBIs banks, and the laws that give us the same rights as any citizen of Iraq.....If its written and on paper, you are liable for your statements.....we do have the same protection with banks under the CBI as does every Iraqi...at least there are laws set up that way....

You could probly get away with a few exchanges under 10k and not have to be reported, but the fact is that multiple exchanges/deposits for those amounts WILL get your account red flagged and you will draw attention to yourself so you probly wont get very far.

Wow! You must not have been out of the country lately. If you think that you can visit another country and you have the same rights as their citizens then you are mistaken. You are a foreigner. I suppose all the foreigners that come to our country have the same rights as a US citizen then, right? Wrong. It is no different when you visit a foreign country. When in Iraq the only place you would have your rights would be the American Embassy.

As far as the multiple exchanges of dinar for less then 10k......I wouldn't exchange them through my bank or my account. Post RV, I plan on traveling our great country. There are currency exchanges in every state as well as banks. I have exchanged foreign currency in the past and never once did I show my ID. Give me a little credit Keep.

Income is always income. Whether you trade in for $1000.00 or $10,000, taxes are still due. You have to count all of your income (from work, interests, pensions, etc.) to figure what you owe. You can hold on to the higher dinar bills but you will still have to pay taxes at some point and based on how you do it, it could 15% to 35%. You can check with a CPA or tax attorney to set you straight on this.

When did exchanging a foreign currency become income? Someone needs to do a little more research and consult a reputable CPA.

Edited December 6, 2011 by speculatorsRIDE

[few24u]

Wow. How rude.

................. a rude donkey.

[Matt330]

Wow! You must not have been out of the country lately. If you think that you can visit another country and you have the same rights as their citizens then you are mistaken. You are a foreigner. I suppose all the foreigners that come to our country have the same rights as a US citizen then, right? Wrong. It is no different when you visit a foreign country. When in Iraq the only place you would have your rights would be the American Embassy.

As far as the multiple exchanges of dinar for less then 10k......I wouldn't exchange them through my bank or my account. Post RV, I plan on traveling our great country. There are currency exchanges in every state as well as banks. I have exchanged foreign currency in the past and never once did I show my ID. Give me a little credit Keep.

When did exchanging a foreign currency become income? Someone needs to do a little more research and consult a reputable CPA.

And how much of a profit did you make when you've exchanged foreign currency in the past?

Doesn't matter if you do it a little bit at a time, it's still tax fraud, and if the IRS sees you with assets that your income doesn't support, you will likely get audited, and if you don't pay up, you'll likely be in jail.

[Jaxinjersey]

And how much of a profit did you make when you've exchanged foreign currency in the past?

Doesn't matter if you do it a little bit at a time, it's still tax fraud, and if the IRS sees you with assets that your income doesn't support, you will likely get audited, and if you don't pay up, you'll likely be in jail.

I agree... it's still tax evasion/fraud, regardless of the amount. Am I missing something here?

[keepmwlknfny]

Wow! You must not have been out of the country lately. If you think that you can visit another country and you have the same rights as their citizens then you are mistaken. You are a foreigner. I suppose all the foreigners that come to our country have the same rights as a US citizen then, right? Wrong. It is no different when you visit a foreign country. When in Iraq the only place you would have your rights would be the American Embassy.

As far as the multiple exchanges of dinar for less then 10k......I wouldn't exchange them through my bank or my account. Post RV, I plan on traveling our great country. There are currency exchanges in every state as well as banks. I have exchanged foreign currency in the past and never once did I show my ID. Give me a little credit Keep.

When did exchanging a foreign currency become income? Someone needs to do a little more research and consult a reputable CPA.

Sorry I cant find the info right now that stated we have the same rights as an Iraqi citizen investing in Iraq.....Ill keep looking for you but I know I read it somewhere.....and my point being is that if it is written, they are liable for it....I know we cant expect to be treated like normal citizens when visiting other countries....thats a no brainer....but I do remember reading somewhere about us having the same rights IN IRAQ as any other citizen when investing in their economy.....

Section 988 of the IRS seems to state that foreign currency gains or loses should be treated as normal taxable income.....

IRC Sec. 988 reads, in part:<br style="color: rgb(39, 61, 73); font-family: arial; "><br style="color: rgb(39, 61, 73); font-family: arial; ">"Notwithstanding any other provision of this chapter—<br style="color: rgb(39, 61, 73); font-family: arial; ">(1) Treatment as ordinary income or loss<br style="color: rgb(39, 61, 73); font-family: arial; ">(A) In general<br style="color: rgb(39, 61, 73); font-family: arial; ">Except as otherwise provided in this section, any foreign currency<br style="color: rgb(39, 61, 73); font-family: arial; ">gain or loss attributable to a section 988 transaction shall be<br style="color: rgb(39, 61, 73); font-family: arial; ">computed separately and treated as ordinary income or loss (as the<br style="color: rgb(39, 61, 73); font-family: arial; ">case may be)."

Ive read this is many different places so I dont think its too far off from the truth there buddy......there is a 60/40 tax split availible for your normal registered forex (non-cash) traders, but we dont fit that category.....been told that from many different sources....even ones you recommend people listen to.....

[fsmith403]

Ya, stop listening to Breitling. He's full of it with this lower denom BS. Just buy the big notes and save your money!

A dinar is a dinar is a dinar!

Makes sense to me!

[Blu Collar Guru]

Wow! You must not have been out of the country lately. If you think that you can visit another country and you have the same rights as their citizens then you are mistaken. You are a foreigner. I suppose all the foreigners that come to our country have the same rights as a US citizen then, right? Wrong. It is no different when you visit a foreign country. When in Iraq the only place you would have your rights would be the American Embassy.

As far as the multiple exchanges of dinar for less then 10k......I wouldn't exchange them through my bank or my account. Post RV, I plan on traveling our great country. There are currency exchanges in every state as well as banks. I have exchanged foreign currency in the past and never once did I show my ID. Give me a little credit Keep.

When did exchanging a foreign currency become income? Someone needs to do a little more research and consult a reputable CPA.

IT BECAME INCOME THE SECOND YOU PURCHASED IT AS AN INVESTMENT !

[rulesforrebels]

I didn't create the system. I just am playing by the rules as they are established. The law says no taxes are owed on exchange of currencies under $10,000. It would be no different then exchanging any left over foreign currency from my last vacation out of country.

Sorry, but I am not one to place my money in a bank in a foreign country like Iraq. No FDIC in Warka. In fact no guarantee of any kind in Warka. This speculation is risky enough as it is.

This is the dumbest thing I have ever heard, not only are you planning on dodging taxes but your posting that you plan to dodge taxes on the internet.

I have no illusions of the dinar being 1:1 with the dollar or an rv happening I'm holding hoping value slowly goes up over time. That said if you do think an RV will happen and at 1:1 why risk going to prison for tax evasion when your going to be filthy rich whether you pay taxes or not?

Also as to your comparison to turning in your leftover caribbean dollars after your cruise turning in $50 or $100 worth of eastern caribbean dollars is hardly the same thing as cashing in dinar for thousands.

Another thing, banks have super computers and can tell if they are making money off you, if they aren't making money off you, exactly how much they make off of you so I assume they can tell other patterns as well. If your turning in dinar slowly over time they will realize your trying to avoid reporting and fill out some paperwork and notify the irs or wahtever other people govern money about you.

Stay on the up and up, pay your taxes, if you truly think this is going to make you a millionaire you'd be an idiot to try to save yourself a few bucks and wind up with huge finds and or jail time.