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

Originally Posted by tiffany

O.k. friends...

I, personally am a bit irked at the mo...but I just got off of the phone with my tax woman, who has offices throughout the US...EG Tax...her name is Esther and she is the owner and has done my taxes for 15 years.

I explained that I had acquired foreign currency and may have the opportunity to trade it in for USD soon and wanted her advice on how to go about it for tax purposes.

She said flat out that it was not a Capital Gain that it would be a REGULAR income tax at 33% !!!!!

I asked her like 5 times...are you sure??? Are you positive??? She said that she wished the answer was different. She told me that if I traded in $4mil, I would have to pay $1mil in taxes!!! Talk about a kick in the gut!!!


My smile ain't so big right now...what are we to do here in the US?
Tiff

I've quoted my initial post in this thread just to update...

I went to my SAME tax lady this year to file my tax return papers in January. She looked at me over her desk and asked me "How is that foreign money working for you?....Iraqi, wasn't it?" I can read people pretty well, and I could tell that she TOTALLY KNEW that it was Iraqi currency, and I just told her that with all of the postitives coming out of Iraq, it looks like it won't be long at all. THEN I asked her about the tax situation again....she now switched her story to "Yes, of course hun! It would be either short or long term Capital Gains Tax." So, just maybe she did a little research and got some herself? I told her she should last year! We'll see!

Originally Posted by tiffany

I've quoted my initial post in this thread just to update...

I went to my SAME tax lady this year to file my tax return papers in January. She looked at me over her desk and asked me "How is that foreign money working for you?....Iraqi, wasn't it?" I can read people pretty well, and I could tell that she TOTALLY KNEW that it was Iraqi currency, and I just told her that with all of the postitives coming out of Iraq, it looks like it won't be long at all. THEN I asked her about the tax situation again....she now switched her story to "Yes, of course hun! It would be either short or long term Capital Gains Tax." So, just maybe she did a little research and got some herself? I told her she should last year! We'll see!

I talked to our tax accountant about it this year, (have to have an accountant as hubby has his own business) and he confirmed that it would be long term or short term capital gains depending on how long you have held it!

Originally Posted by choochie

I talked to our tax accountant about it this year, (have to have an accountant as hubby has his own business) and he confirmed that it would be long term or short term capital gains depending on how long you have held it!

I do our own taxes even though my husband is self-employed. It's a nice challenge...headache, but I am a stay-at-home (HA!) mom, and enjoy the challenge...
Here's my question this year. Are we supposed to report to the tax people that we own dinar?? I mean, all of a sudden one year we are gonna be like "Hey, I bought this foreign currency, and now it's worth.., and I have all of these capital gains now as a result?!!" Shouldn't there be a place for reporting this ahead of time?

Originally Posted by cooldolphins

I do our own taxes even though my husband is self-employed. It's a nice challenge...headache, but I am a stay-at-home (HA!) mom, and enjoy the challenge...
Here's my question this year. Are we supposed to report to the tax people that we own dinar?? I mean, all of a sudden one year we are gonna be like "Hey, I bought this foreign currency, and now it's worth.., and I have all of these capital gains now as a result?!!" Shouldn't there be a place for reporting this ahead of time?

No, not unless you realise a gain. It will be either short term or long term, depending on how long you've had them. The idea is not much different from buying stock in a new company that's really low, and then it goes way up.

Thanks! I just didn't know where or IF I needed to show the dinar this year as a purchase on my taxes. This is our only "investment" so it's new territory to me! Next year, Capital gains for short term will be 0% for the people who fall in the 10-15% tax bracket (don't know if they go by your prior year) and 10% for those in any above brackets!! I have posted a link to this somewhere. Off to work....(I substitute~!)

What is the time difference between long term and short term?

Kozmar

Originally Posted by kozmar

What is the time difference between long term and short term?

Kozmar

Anything less than a year is short term. A year or longer is long term.

Originally Posted by choochie

Anything less than a year is short term. A year or longer is long term.

I have never really gotten an answer on this question. I made my first purchases with someone who never gave a receipt. And even though I still have my western union receipts, they were made out to the persons name and don't have any thing on them that say the payments sent were for Dinar. What can I do, as I am sure the burden of proof will be on us to be able to prove long term over a year..
Thanks, barmurphy

Originally Posted by barmurphy

I have never really gotten an answer on this question. I made my first purchases with someone who never gave a receipt. And even though I still have my western union receipts, they were made out to the persons name and don't have any thing on them that say the payments sent were for Dinar. What can I do, as I am sure the burden of proof will be on us to be able to prove long term over a year..
Thanks, barmurphy

From what i understand yes .... you will need to prove you have held it for more than a year. I do not what tax bracket you fall in but some fall in less than 15% bracket. so check into that also.

In any bracket 10% - 20% is way better than unearned income tax of about 33%. I can live with that being as mine will fall under the short term untill next year.