Thread: Iraq/Dinar News. 09/05 to 01/14/07

Originally Posted by celilo

Not quite. Capital gains are taxed when recognized, which, in the case of the dinar, means when you convert the dinar into anything else. It may be possible to do a like-kind exchange for another foreign currency (not dollars), which would delay recognizing the gain while moving to a more stable currency; however, I have not explored this option.

thats what i meant kinda. i want to revert mine into euro and i wont be taxed by the usa until i change it into usd.

Is it still possible that the reval can occur at anytime even if the FIL is not signed until 10/12. Reval first, then FIL a week later???? Just wondering if there is still a shot for a reval this week.

Originally Posted by MC Dig

I believe you are exempt from capital gains if you shift money directly into another investment of "like kind". So, if you sell a house and use the proceeds to immediately buy another, or sell your dinar and buy Euro's or Yen. You still have to pay when you cash out into dollars though. I am in no way an expert on this, just what I have heard talking to people.

yeah thats what i was understanding.

Originally Posted by Vipor

Might just be semantics. Perhaps what we call a "bill" here in the states they may be calling a "draft".

THANKS VIPOR. OOOHHHH I HOPE YOU'RE RIGHT!

Originally Posted by CharmedPiper

Is it still possible that the reval can occur at anytime even if the FIL is not signed until 10/12. Reval first, then FIL a week later???? Just wondering if there is still a shot for a reval this week.

Just a few hundred posts ago that is what everyone was saying......reval first then the fil. Is this still the consensus? I'll give a yeah if it will hurry it up.

Originally Posted by shotgunsusie

"A draft investment law was planned to encourage foreign investment into the country for local investment was already organized by a law"
WAS ALREADY ORGANIZED BY A LAW!

DINAR LAW (replaces Murphy's Law) states that whatever CAN delay the reval WILL delay the reval. This law has been read every weekend since August and is due to be replaced by the INVESTOR LAW which states the LAST person to HIT the cookie at the reval party HAS to EAT the cookie

Originally Posted by readytogo

THE WORD I'M NOT LIKING HERE IS DRAFT! Is this like a rough draft to feel everyone out? And not the real deal? Someone help me out here!

I think a better translation of 'draft' would be 'bill'; then it's a law after the 2 readings and vote are completed.

Originally Posted by ozizoz

DINAR LAW (replaces Murphy's Law) states that whatever CAN delay the reval WILL delay the reval. This law has been read every weekend since August and is due to be replaced by the INVESTOR LAW which states the LAST person to HIT the cookie at the reval party HAS to EAT the cookie

chocolate chip or oatmeal?

Originally Posted by readytogo

Just a few hundred posts ago that is what everyone was saying......reval first then the fil. Is this still the consensus? I'll give a yeah if it will hurry it up.

Thanks...my brain is dinar-fried at this point...I can't keep track of what was passed, what needs passed, what might have been passed behind closed doors, oh geez Iraq reval now....I don't think I have another week of brain cells left.....

Regarding capital gains:

Publications and Notices

In the window of publications, choose Pub 550 and download it.

Enjoy some action-packed reading courtesy the IRS!

Here's from the IRS website:

IRS TAX TIP 2006-34

Almost everything you own and use for personal purposes, pleasure or investment is a capital asset. When you sell a capital asset, the difference between the amounts you sell it for and your basis, which is usually what you paid for it, is a capital gain or a capital loss. While you must report all capital gains, you may deduct only capital losses on investment property, not personal property.

Here are a few tax facts about capital gains and losses:

• Capital gains and losses are reported on Schedule D, Capital Gains and Losses, and then transferred to line 13 of Form 1040.

• Capital gains and losses are classified as long-term or short-term, depending on how long you hold the property before you sell it. If you hold it more than one year, your capital gain or loss is long-term. If you hold it one year or less, your capital gain or loss is short-term.

• Net capital gain is the amount by which your net long-term capital gain is more than your net short-term capital loss.

• The tax rates that apply to net capital gains are generally lower than the tax rates that apply to other income and are called the maximum capital gains rates. For 2005, the maximum capital gains rates are 5, 15, 25 or 28 percent.

• If your capital losses exceed your capital gains, the excess is subtracted from other income on your tax return, up to an annual limit of $3,000 ($1,500 if you are married filing separately).

For more information about reporting capital gains and losses, get Publication 17, Your Federal Income Tax and Publication 550, Investment Income and Expenses, available on the IRS Web site at IRS.gov or by calling 1-800-TAX-FORM (1-800-829-3676).


Links:

Publication 544, Sales and Other Dispositions of Assets (PDF 321K)
Publication 505, Tax Withholding and Estimated Tax (PDF 367K)
Publication 550, Investment Income and Expenses (PDF 516K)
Publication 564, Mutual Fund Distributions (PDF 178K)
Publication 547, Casualties, Disasters, and Thefts (PDF 133K)
Publication 527, Residential Rental Property (Including Rental of Vacation Homes) (PDF 187K)
Publication 536, Net Operating Losses (NOLs) for Individuals, Estates and Trusts (PDF 213K)