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

Originally Posted by Cyberkhan

Right now that is still up for debate. What I have been able to locate is that this will be treated as a capital gain. Meaning that if you hold this investment for under a year it is considered a short term capital gain and you are required to report all gains as ordinary income for tax purposes. Meaning that anything over 300k (and change) is subject to a 35% federal tax. If you have held the investment for over a year (with proper documentation) you are subject to a long term capital gain which is 15%. BIG difference.

Depending on your state of residence you state tax can be anywhere from 0% to almost 9%.

Hope this helps. And remember that the only stupid question is the one you don't ask.

This route in red, also will fall into the Income Tax Bracket you were in from the previous year.

Originally Posted by neno

This route in red, also will fall into the Income Tax Bracket you were in from the previous year.

Neno,

I am not quite sure what you mean by that. On the STCG all gains are included with your current income for the year claimed as ordinary income.

Originally Posted by Cyberkhan

Neno,

I am not quite sure what you mean by that. On the STCG all gains are included with your current income for the year claimed as ordinary income.

Good point,

To better understand, you can read back over this thread as it is a confusing subject. Simply put, there are short term and long term capital gains, and they are taxed at different rates. Long term gains are at lessor rate depending on the year you report, short term, less than a year are taxed at what ever your income tax rate is for that reporting year, so it depends on your other income as well as your short term capital gains. Even more reason to hold out on excahnge for at least a year, so give that some thought before cashing out all that you may hold. Most of us have been holding for longer already, so we will not be subject to the highest current rate.

Happy Holiday Season to all, Mike

I am a new buyer to a dinar notes. My question is whether I am obliged to pay taxes just to purchased the dinar?. In other words,when do I start to pay my taxes, is it during the purchase of the dinar or after selling of the dinar or after the exchange to dollars?Please I need a detailed explanation......Thanks

Originally Posted by Offshore-Wealth.com

Hi Tiff,

Yes, it is a complicated system as we know, so with everyone in a unique situation, based on accumulating dinar a little at a time, different incomes, different needs, etc. I have some dinar that I have had for two years plus, so I will exchange those first, if I remember which ones they were. LOL

The one year rule is to encourage long term investments, so a penalty is levied for investments that are less than a year old, so the easiest way to calculate your taxes is to use this capital gains calculator. Have fun, after all, paying taxes is fun, right? LOL

Good luck to all, Mike
Capital Gains Tax Rate Calculator

Originally Posted by jbc62

I am a new buyer to a dinar notes. My question is whether I am obliged to pay taxes just to purchased the dinar?. In other words,when do I start to pay my taxes, is it during the purchase of the dinar or after selling of the dinar or after the exchange to dollars?Please I need a detailed explanation......Thanks

I recall reading that tax is applicable at the time that the IQD is converted into USD. The taxes themselves are to be paid along with your personal income tax for that year. Someone please correct me if I am mistaken. This is just what I have read on others' posts.

Originally Posted by jbc62

I am a new buyer to a dinar notes. My question is whether I am obliged to pay taxes just to purchased the dinar?. In other words,when do I start to pay my taxes, is it during the purchase of the dinar or after selling of the dinar or after the exchange to dollars?Please I need a detailed explanation......Thanks

Vipor is correct,

There is no tax when you acquire dinar, only when you exchange it and then realize a capital gain, so it will depend on when you exchange it, and how long you held it before exchanging it which determines tax rate.

Happy Holiday Season to all, Mike

NEW 2006 TAX LAWS

Higher AMT Exemptions.

The Alternative Minimum Tax income exemption amounts are raised to $62,550 for married joint filers and $42,500 for singles in 2006.

LOWER CAPITAL GAIN and DIVIDEND RATES EXTENDED.
The soon to expire reduced tax rates of 5% and 15% for capital gains and dividends are extended through 2010.

This is from my latest IRS news letter.

Thanks,maryann70

Originally Posted by maryann70

NEW 2006 TAX LAWS

Higher AMT Exemptions.

The Alternative Minimum Tax income exemption amounts are raised to $62,550 for married joint filers and $42,500 for singles in 2006.

LOWER CAPITAL GAIN and DIVIDEND RATES EXTENDED.
The soon to expire reduced tax rates of 5% and 15% for capital gains and dividends are extended through 2010.

This is from my latest IRS news letter.

Thanks,maryann70

Thank you,

This is good news as most of us will be in long term group, so we enjoy the lower tax rate of 5%, and that is not to difficult to handle. (g)

Happy Holiday Season to all, Mike

I have been recently purchasing Dinar from Scotia Bank. I also have a bussiness account with them and talk frequently with the Bussiness Manager. After reading all the posts pertaining to both U.S and Canadian taxes, I had a talk with my manager. After explaining to her the amounts and the possible return, She informed me that there is a HUGE grey area in regards to capital gains through currency exchanes. To be safe she advised me to do one of two things. 1.cash in my dinars slowly over the course of several months opening different savings accounts, keeping the amounts low so as not to cause attention. 2. deposit everything and transfer money imediatly to a investment company like Investor's Group. Now she informed me that this was only if I was REALLY worried about paying taxes, she firmly believes that a straight currency exchange can be done in ANY amount with Scotia bank and deposit directly into an existing account or for a $6 fee a casher's check/money order can be given. She also informed me to keep all my bank reciepts from Dinar purchases in case for ANY reason the police investigate you, it might look like an illegal activity eg: drugs or other illegal sales. I hope that this is informative to my fellow Candadians. Lets cross our fingers for a great 07

Originally Posted by jer6925

I have been recently purchasing Dinar from Scotia Bank. I also have a bussiness account with them and talk frequently with the Bussiness Manager. After reading all the posts pertaining to both U.S and Canadian taxes, I had a talk with my manager. After explaining to her the amounts and the possible return, She informed me that there is a HUGE grey area in regards to capital gains through currency exchanes. To be safe she advised me to do one of two things. 1.cash in my dinars slowly over the course of several months opening different savings accounts, keeping the amounts low so as not to cause attention. 2. deposit everything and transfer money imediatly to a investment company like Investor's Group. Now she informed me that this was only if I was REALLY worried about paying taxes, she firmly believes that a straight currency exchange can be done in ANY amount with Scotia bank and deposit directly into an existing account or for a $6 fee a casher's check/money order can be given. She also informed me to keep all my bank reciepts from Dinar purchases in case for ANY reason the police investigate you, it might look like an illegal activity eg: drugs or other illegal sales. I hope that this is informative to my fellow Candadians. Lets cross our fingers for a great 07

In Canada gains from currency speculation are capital gains for tax purposes just as any other commodity. If you do the procedure of cashing it in in small amounts over a period of time and do not report it on your tax return then you are guilty of tax evasion and, if caught, could be subject to fines, and imprisonment (unlikely, but possible). There is a separate thread in here somewhere for Canadian Taxes and if you read through it, you will see a discussion and quotes from relevant CRA bulletins. Depending on individual circumstances, there are ways of reducing the tax burden legally. Personally, I will report the entire amount, pay the relevant taxes, and enjoy the rest of my life without having to look over my shoulder for the tax authorities.
In any event I would recommend you discuss this with a qualified tax accountant (and I mean a CA or CGA or CMA and NOT a simple tax preparation service such as H&R Block) Good luck.