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

Yes! Paying taxes is FINE if it's at the 5% rate! lol! So how do 'they' know if you've had the dinar for more or less than a year?

That is a GREAT little calculator! Thanks Mike! :-)

I am thinking totally different. Lets say you are in Mexico on vacation and you have to change your currency in for theirs to be able to make purchases. Then before you leave are when you get back home you exchange it back.

There are no Taxes for that. So if I exchanged $100.00 for lets say 100,000NID, this is a exchange of currency. So when I switch it back and the value raised this is called Captial Gains? Why? The Way I see it is you just switched to another currency again. Help?

Originally Posted by neno

I am thinking totally different. Lets say you are in Mexico on vacation and you have to change your currency in for theirs to be able to make purchases. Then before you leave are when you get back home you exchange it back.

There are no Taxes for that. So if I exchanged $100.00 for lets say 100,000NID, this is a exchange of currency. So when I switch it back and the value raised this is called Captial Gains? Why? The Way I see it is you just switched to another currency again. Help?

Hi Neno,

I have the same thoughts. It's been awhile but as I recall when I switched to different currency for Rio, Italy and Denmark some years ago I did not pay any tax on it when I switched it back over to US currency, regardless of the exchange rate.

I really wish I had such worries as turning-over hundreds of thousands of Dinar to be so upset about it. LOL Missed that boat.

Kozmar

hey MIKE....how about if i would form a corporation....would my taxes b less then the capital gains tax???..just wondered.....Pat

Originally Posted by kozmar

Hi Neno,

I have the same thoughts. It's been awhile but as I recall when I switched to different currency for Rio, Italy and Denmark some years ago I did not pay any tax on it when I switched it back over to US currency, regardless of the exchange rate.

I really wish I had such worries as turning-over hundreds of thousands of Dinar to be so upset about it. LOL Missed that boat.

Kozmar

I dont know if you missed the Boat or Not. But if you get a order in before 5pm est today (which is one hour & 15 minutes from now) from safe.dinar the guy I talked to yesterday says you will have it by tuesday guaranteed no matter if it does peg over the week-end. Its COD. so it really doesn't matter. Raditz has another guy thru pay-pal too. I didnt use him but Raditz has several times.

I have a question and I will ask it in an hypothetical scenario. All of my NID are in 25K notes. Therefore, exchanging them in a little at a time to remain under the $10K US rule is not possible at 1:1. I purchased my 10M NID in three orders over several months, the earliest being OCT 05. Since the NID has been around since '03, couldn't we say we purchased from military personnel we know over in Iraq, therefore we do not have receipts and only responsible for the 15% long term capital gains? People in the US must remember that the 15% is for Federal tax. If you live in a state that has state income tax, you are responsible for that also. I live in South Carolina and our state tax is 7%. So my Long Term Capital Gains would total 22%. I know there are smarter people on here than I, let's figure out a way to pay Uncle Sam as little as possible in taxes. I hate the thought of myself assuming all of the risk, and Uncle Sam getting some of the reward.

Johnny

Originally Posted by spinedaddy

I have a question and I will ask it in an hypothetical scenario. All of my NID are in 25K notes. Therefore, exchanging them in a little at a time to remain under the $10K US rule is not possible at 1:1. I purchased my 10M NID in three orders over several months, the earliest being OCT 05. Since the NID has been around since '03, couldn't we say we purchased from military personnel we know over in Iraq, therefore we do not have receipts and only responsible for the 15% long term capital gains? People in the US must remember that the 15% is for Federal tax. If you live in a state that has state income tax, you are responsible for that also. I live in South Carolina and our state tax is 7%. So my Long Term Capital Gains would total 22%. I know there are smarter people on here than I, let's figure out a way to pay Uncle Sam as little as possible in taxes. I hate the thought of myself assuming all of the risk, and Uncle Sam getting some of the reward.

Johnny

Greetings Johnny,

To clear up this issue, the $10K rule, whereby you have to complete a 8300 report is only if you exchange for cash, not if you have your bank deposit your exchange amount into your account or take the proceeds in the form of a bank check, as example, it is only for cash exchanges.

As to tax issue, it is always up to the individual to repot what they earn which is not reported to IRS on 1099's, so you can say you bought it whenever you want. I have bought dinar for over two and a half years, but personally, I don't remember which notes I purchased last week verses the ones I bought two and a half years ago. (g)

Good luck to all, Mike

Hmmmm...now that I think about it...neither do I!

Would one be asked for a receipt, if they stated that they purchased on ebay? (proof of purchase?)

Originally Posted by tiffany

Hmmmm...now that I think about it...neither do I!

Would one be asked for a receipt, if they stated that they purchased on ebay? (proof of purchase?)

If you were audited, they will probably ask for receipt, its the risk you take, unless you have a tax person who is willing to represent you if you should be audited. But I am sure there are ways around it, but I am no expert.

Originally Posted by tiffany

Hi Mike!

More or less? I mean, I have had mine for less than a year.....would my tax percentage be higher than someone that has had them for longer? PLUS I didn't claim anything on last years tax forms that I had purchased any...like a loss(?)

Learning a bunch about these things as we go along!

Tiff

Hi Tiff,

This is the real problem. If you exchange less than one year after purchase, then at best it will be short term capital gain, which is treated exactly the same as ordinary income in current IRS regs. I have been fighting with spreadsheets for days now trying to decide what I would do and have changed my mind dozens of times.

This has a big impact on the question of hold vs. sell too of course. But truly, I have a lot of sympathy with your tax lady's opinion on that dileama, even if she might need to check up on the catpital gain question. I don't think we can ignore that the situation over there is risky, especially with the Iran factor.

It's a tough set of choices but, like Mike says, not a bad situation rght?

p.s. also as an individual, the purchase itself is not an event that would be reported at all. it will only be used as the basis when you report the capital gain.