Thread: "Taxes", Anything Related To It In Here

Originally Posted by celilo

Sorry to inform you, but studies have shown that 50% of the time, the IRS hotline provides the wrong answer. I believe that the tax code is ambiguous with regard to this transaction, but the IRS guidlines clearly indicate that more than $200 of value change is taxable; that does not mean that they are correctly interpreting the code either. Unless you have a ruling letter signed by the IRS indicating that this type of currency exchange is not taxable, be careful. Telling the IRS auditor that they told me on the IRS Hotline that I owed no tax on this trasaction will not help you one bit!

Yes, You must have your stuff together. If you feel better, again just do what makes you feel best.

Originally Posted by Dinar-Excited

Hi Everyone,

As we are getting close I just called the IRS and after a very long wait I talked with someone at the IRS.

I asked what taxes would you have to pay if you exchanged USD into foreign currency and back to US Dollars. The guy told me that there was NO TAXES owed if it was cash for cash exchange for USD. Only if you were investing in foreign currency through a broker on the stock exchange where you would show a capital gain. I asked several times cash for cash with an increase in exchange rate is not taxable and NO LIMIT!!!!

What we have to be aware of is the Banks report to the IRS when you deposit more than $10,000 at a time I think. So keep receipts and good records.

Still check with the IRS and a Tax Attorney for yourself.

But this is information today 10-10-2006 from the US IRS Direct.

Dinar-Excited

NOW THIS IS SOME REALLY GREAT NEWS!!! I'M SO EXCITED ABOUT THIS CAUSE THAT'S QUITE A SUBSTANTIAL AMOUNT OF SAVINGS! THANK YOU SO MUCH!!!! LISA

Originally Posted by celilo

The currency tranaction reporting has noting to do with the taxability of the income. It is used to identify money laundering and fraud only.

Sorry, I reread (deleted my last post) what you are saying. You are very correct from my info I have recieved.

Originally Posted by neno

Sorry but I Agree to Disagree on this. It will and has contributed in the US to Drug Dealers and Terriost Finacing also. I guess I could go with them both considered as Money Laundering.

I agree with you. I was including US to Drug Dealers and Terrorist Financing in money laundering. Currency Transaction Reoprting (CTR) was initially put in place to track drug money.

What I'm saying is that having a CTR filed on a tranaction of say $100,000 does not indicate that you have taxable income of $100,000. It only means that you were part of a high dollar transaction that might come under scrutiny since illegal activites often inlcude high dollar transaction. If your transaction is legal, no impact on you!

neno: deleted his original post because he misunderstood my prior post, but I'll leave tis here since many are confused about what CTR is intended to accomplish

Originally Posted by celilo

I agree with you. I was including US to Drug Dealers and Terrorist Financing in money laundering. Currency Transaction Reoprting (CTR) was initially put in place to track drug money.

What I'm saying is that having a CTR filed on a tranaction of say $100,000 does not indicate that you have taxable income of $100,000. It only means that you were part of a high dollar transaction that might come under scrutiny since illegal activites often inlcude high dollar transaction. If your transaction is legal, no impact on you!

I reposted above. I was distarcted are somsthing as I read that. And this is exactlly what I have been told by my CPA of 15 plus years. Now I will double check when it becomes realevent with another and another. But I do feel good where you and I stand.

The form I have in my possession is the FINCEN 104 which states Currency Transaction Report (formerly form 4789) which the bank fills out. I will personally call the IRS tomorrow to find out. I sure hope that your right but I see capital gains tax being applied.

Originally Posted by Vipor

From what I've read, dated military orders or dated contractor airline tickets proving you were in country would suffice. Heck, your passport itself has a date stamped on it. Basically, as long as you can prove you were in country. From what I've read that is.

Perhaps there are special allotments for people working in Iraq, but I think you would still need to show that the transaction actually took place during the time in question. JMO.......

I do not care either way! Cause I am moving to the Northpole! To help Santa Claus! They will never find me! In my snow cave!!!!!!!!!!!!!!!

man.....can't Santa live on an island someplace warm?!?!?

Hi Everyone,

I am definitely not saying to avoid tax but to make sure you owe tax. I called them once before but did not get through to the right department. But what the person did ask was did I buy the currency with taxed money and of course I did because all money we make at work is taxed. But I called today and after about 2 hours of being on hold to get to the right department I was told that it was not taxable unless you were using a broker and not holding the actual cash.

Always double and triple check you do not want to get in trouble. I understand that the IRS tax agent could be wrong but he could have been right also. I also thought it strange that there would be no tax but this is a once in a life time opportunity. Usually if you are trading currency you are doing it through a broker and not holding actual cash. Also I was think that most of the Republicans are probably holding a lot of Dinar so it maybe in there interest not to tax as this really has not happened before. But I am sure if it is not taxed they will change the law in case this happens again.

But please check for yourselves with the IRS and Tax Attorney. I am going to check again before I trade my money in.

I just wanted to pass on this information.

Dinar-Excited