Thread: Iraq/Dinar News until 5/23/07 Midnight CST

Originally Posted by shotgunsusie

actually, in order to be a member they must have a convertible currency which presently they do not. so, the revalue would need to occur previous to the ascension i believe.

Hey SGS or anyone else who knows this, I have a question: Iraq's currency is not a convertible currency at this time, but does there have to be an RV in order to make it fully convertible? Put another way, can it be convertible at the artificially low rate that it's at presently? Sorry to ask the question but I'm still working on a learning curve here!

This is a IRS TAX RULING that that was made in 1974. It is still on the books for all currency. We fall under Section 1221 of the code. What it says in a nutshell is - If you keep this investment for 366 days or longer you pay Capital Gains of only 15%.

Let's not forget our 3 precious tax-advantage years ahead of us!!! Those of us like me who fall into the 10%-15% tax brackets this year will pay 0% capital gains tax in 2008-2010!!!

All others will only pay 10%!!

Tax Rates on Dividends and Capital Gains - Tax Law Changes - Qualified Retirement Plans - IRA - Phoenix Wealth Management

Planning for the 2008–2010 Zero-Percent Adjusted Net Capital Gain Rate

Originally Posted by readytogo

Is that what article 140 will take care of? Will it make it a convertible currency?

I think article 140 has to do with Kirkuk - either determining which region it belongs to, and somehow resolving the forced displacement of Kurds from the city and Saddam-era incentives that enticed Iraqi-Arabs to move in. It's sitting on a bunch of oil, of course, just to sweeten the pot. The Iraqi Arabs want it for the oil, and because they have a significant population now. The Kurds want it for the oil, and because it historically was more Kurdish in population. Big Oil doesn't care, as long as someone signs a contract. Paris Hilton doesn't want it for the oil, she just doesn't want to go to jail. The local Turkomen are the most likely to get caught in the crossfire, and Turkey doesn't want the Kurds to have more oil wealth as it might give them some crazy idea to start their own country, which in turn might give the Kurds in southern Turkey the same crazy idea.

Seems to me if they distribute oil wealth by a per capita method, it shouldn't matter who it belongs to. Big Oil is going to get theirs inevitibly. Paris is going to jail, at least for a day. Turkey needs to mind its own business, and if the Kurds are so successful that they break away, Turkey can send all their Kurds to a happy, peaceful, oil-rich Kurdistan and Turkey can continue trying to get its corrupt inefficient govt and faltering economy to meet EU membership standards.

Originally Posted by PAn8tv

Is the VND fully convetable? If not how did Vietnam gain entry?

member, non-market status.

Just wondering is there an article or something that tell's us what Iraq is trying to become with WTO is it: Number 1 or 2

1. article 8 free-market status

2. member, non-market status.

Is sure hope it is Number 1
Thanks
LIT

Originally Posted by Spoiledred

Good question. Would like to know how the Dong is going to RV or increase in Value. What are the speculations there? Maybe these questions need to be in the other thread.

i believe there is an article over in that thread indicating them becoming full market status.

Originally Posted by big Jim

Revenue Ruling


This is a IRS TAX RULING that that was made in 1974. It is still on the books for all currency. We fall under Section 1221 of the code. What it says in a nutshell is - If you keep this investment for 366 days or longer you pay Capital Gains of only 15%.

Rev. Rul. 74-7

1974-1 C.B. 198

Sec. 1031
Sec. 1221

IRS Headnote

Foreign currency reconverted into U.S. dollars. The reconversion of a foreign country's currency into U.S. dollars after a visit to that country by a U.S. citizen, not a dealer in foreign currency or engaged in a trade or business in that country, is not a like kind exchange under section 1031(a) of the Code. The foreign currency is a capital asset and any gain or loss realized on the reconversion is a capital gain or loss. I.T. 3810 superseded.

Full Text

Rev. Rul. 74-7 /1/

The purpose of this Revenue Ruling is to update and restate, under the current statute and regulations, the position set forth in I.T. 3810, 1946-2 C.B. 55.

The question presented is whether, after the conversion of United States dollars into foreign currency by a United States citizen traveling in the foreign country, the reconversion of the foreign currency into dollars may be treated as an exchange of property held for productive use in trade or business or for investment for property of a like kind to be held for productive use in trade or business or for investment, under section 1031 of the Internal Revenue Code of 1954. If not, the further question presented is whether the gain or loss realized on such a transaction by a taxpayer, who is not a dealer in foreign currency, constitutes capital gain or loss under section 1221 of the Code.

The taxpayer, a United States citizen, while traveling in a foreign country deposited United States dollars in a bank in that country. At his request, the bank converted these dollars to that country's currency for the taxpayer's personal use. The taxpayer was not a dealer in foreign currency and was not engaged in trade or business in the foreign country. During his travels there were no transactions in the foreign bank account. At the conclusion of his stay, the taxpayer requested the bank to reconvert the foreign currency to dollars and close his account. The value of the foreign currency, measured in terms of dollars, differed at the time the account was closed from the value when the account was opened.

Section 1031(a) of the Code provides, in part, that no gain or loss shall be recognized if property held for productive use in trade or business or for investment is exchanged solely for property of a like kind to be held either for productive use in trade or business or for investment.

In the instant case, the foreign currency does not constitute property held for productive use in trade or business or for investment, and therefore the reconversion is not a like kind exchange under section 1031(a) of the Code.

Section 1221 of the Code provides, in part, that the term "capital asset" means property held by the taxpayer, but does not include certain specified property. Section 1.1221-1(a) of the Income Tax Regulations provides, in part, that the term "capital assets" includes all classes of property not specifically excluded by section 1221.

In the instant case, the foreign currency is not excluded from the definition of capital assets contained in section 1221 of the Code.
Accordingly, the foreign currency is a capital asset and any gain or loss realized on the reconversion by the taxpayer is a capital gain or capital loss.

I.T. 3810 is hereby superseded, since the position stated therein is restated under the current law in this Revenue Ruling.

/1/ Prepared pursuant to Rev. Proc. 67-6, 1967-1 C.B. 576.

that was previous to bush signing legislation to lower the long term capitol gains tax by 5% per year for two consecutive years lowering it from 15% to 10% this year to 5% next year.

Originally Posted by shotgunsusie

that was previous to bush signing legislation to lower the long term capitol gains tax by 5% per year for two consecutive years lowering it from 15% to 10% this year to 5% next year.

Planning for the 2008–2010 Zero-Percent Adjusted Net Capital Gain Rate

DECEMBER 2006 - The current ordinary income tax rates for individuals are 10%, 15%, 25%, 28%, 33%, and 35%. Certain capital gains and qualified dividends (i.e., adjusted net capital gains) are taxed at 15%, or 5% for taxpayers in the 15% or 10% tax brackets. Pursuant to the Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA) and extended by the Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA), the 5% rate drops to 0% from 2008 to 2010. In 2011, these rates will sunset and revert to the pre-2001 rates of 15%, 28%, 31%, 36%, and 39.6%. Qualified dividend income (i.e., dividends from most domestic corporations and certain qualified foreign corporations) will lose its favorable status, and capital gains rates will revert to pre-2003 rates, generally 20% (10% for gains in the 15% bracket) and the special five-year holding period rules. Some commentators speculate that, under certain circumstances, the favorable rates may be rescinded after 2008, which is a presidential election year.

Planning for the 2008–2010 Zero-Percent Adjusted Net Capital Gain Rate

Originally Posted by chadm

found this somewhere else im not sure if it has been posted here or not but wanted to post ithere just incase ,by the way this interview is a year old


''AC Question:
I know for over a year that Iraq Govt. CBI and Iraqi customs have been attempting to put a stop to the smuggling of Iraq Dinar out of the country. Do you think the smuggling has increased or decreased as the new Iraq government is almost completed? What is your feeling on the Iraq Dinar speculators that are holding the Iraq Dinar outside of Iraq?


CEO Al-Bunnia:
It has always been the case since many decades ago that Iraqi currency is not allowed to be exchanged or exported outside Iraq. The law is still on now. Nothing deters the Iraqi businessman(smuggler ) from looking at an opportunity and grasping it which will generate him huge profits. Even with sadam stringent fist and control could not stop the smuggling of the Iraqi dinar before the invasion of Kuwait (as after wards there was no value to the Iraqi dinar).My advise to those Iraqi dinar speculators is that they are taking the risk of by buying Iraqi dinar because I really do believe that the currency will be changed in the near future once the government is stabilized and settled and also there is a large number of fraudulent currency moving in the economy in which it will be difficult to control. The reason for that falls in two points. The first point is that the central bank of Iraq is putting an RFP to the supply of printing money machines. The second point, there is no signature of the governor of the central bank of Iraq on these notes which by law is not acceptable. ''
__________________________________________________ _________

IMHO it doesn't hold any facts, considering that BofA and Chase have both been selling Dinars to the general public, not to mention all the other reputable banks around our fair world.

Originally Posted by readytogo

Is that what article 140 will take care of? Will it make it a convertible currency?

140 is kirkuk. that had to be ironed out before the hcl was finalized.