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

Originally Posted by readytogo

Would Chase bank be considered a broker?

They are a Financial Institute, called a Bank.

Also you do not have to feel out a forum.

Originally Posted by neno

They are a Financial Institue, called a Bank.

I would have put all those little guys rolling on the floor laughing here, but I don't know where to get them. Ot those neat dancing bannanas!

no gain shall be recognized for purposes of this subtitle by reason of changes in exchange rates after such currency was acquired by such individual and before such disposition. The preceding sentence shall not apply if the gain which would otherwise be recognized on the transaction exceeds $200.

This sounds like any exchange over $200 is considered taxable to me.

Originally Posted by readytogo

Would Chase bank be considered a broker?

Oh man oh man! This dose sound like a BIG tax loop hole!

When the IRS guy says, If you are holding actual cash! No TAX!

Now, as for the people in the ISX and with those Warka bank accounts!

I'm sorry, but it sounds like they are all SOL!!!!!!!!!!!

That would be my WAG..............................................

Originally Posted by cigarman

no gain shall be recognized for purposes of this subtitle by reason of changes in exchange rates after such currency was acquired by such individual and before such disposition. The preceding sentence shall not apply if the gain which would otherwise be recognized on the transaction exceeds $200.

This sounds like any exchange over $200 is considered taxable to me.

Soooo, does that mean we will have to pay taxes on the amount we get when we cash in - what we paid for it - $200?

I would say, if you just purchased dinars through Chase than no!

Always consult with a professional first!!!!!!!!

Then ever take financial advise from a guy named goldraker!

Unless I want to sell you something!

Originally Posted by Pimpmaximus

Congress is actually considering extending the benefit until 2010. I'm sure the rate won't be absolutely zero for threee years running, but its still good news.......

Better do it before the Noember elections, or it's not likely to happen. The Deocrats are against this policy.

I dont really think the Eternal Revenue Service will let you off scott free....

remember, the Lotto is a cash for cash transaction...isn't it ?

if it sounds too good to be true.,,,,well, you know the rest

Originally Posted by ronbo

Soooo, does that mean we will have to pay taxes on the amount we get when we cash in - what we paid for it - $200?

Close...You pay tax on the gain defined as "the amount we get when we cash in - what we paid for it" if that gain is more than $200.

Originally Posted by cigarman

no gain shall be recognized for purposes of this subtitle by reason of changes in exchange rates after such currency was acquired by such individual and before such disposition. The preceding sentence shall not apply if the gain which would otherwise be recognized on the transaction exceeds $200.

This sounds like any exchange over $200 is considered taxable to me.

You folks are discussing US tax law and I am not familiar with it. However, I am an accountant and have been preparing personal and corporate tax returns for 45 years here in Canada.

If I were to buy some foreign currency (cash transaction) for the purpose of expenses while travelling to that country and had some left over when I returned any gain or loss would not be taxable. That is based on the presumption that the amount would be relatively small and the intent of the transaction was to cover expenses and not make a profit.

However, Canada tax laws are quite specific in that if you purchase items such as foreign currency theough a broker, bank, or any source with the INTENT of making a profit, then any profit is considered a "taxable capital gain" and must be included on your tax return.

We don't have special rules regarding short or long term gains. A gain is a gain is a gain whether the item is held for one day or 10 years. The taxable portion of the gain is 50%. The other 50% is tax-free, so we get a break that way. Also, the gain is taxable in the year in which it is realized. (ie. cashed in). Since we are close to the end of the calendar year I may cash in 1/2 in 2006 and the rest in 2007. I will do some projections once I know the rate and determine which way will yield the lowest tax bill. It is only a concern if the taxable amount is high enough to push me into a higher bracket if I cash it all in this year. By deferring some to next year, it may keep the entire amount in a middle bracket.

I do strongly suggest you contact an accountant prior to cashing in for some tax planning. If you don't know a good one, ask your bank manager to recommend one. Usually bank managers deal with many different accountants in connection with their corporate customers and would know the good ones.