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

Originally Posted by readytogo

chocolate chip or oatmeal?

...don't forget "fortune" (cookie).

Originally Posted by Vipor

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

technically, every thing in government here and abroad is a draft until voted on and agreed upon. take for example, they like 90% of the investment law but not the last 10% this would require some changes. If they like 100% of FIL on 12th then they will pass it, turning the draft into law.

Looks like notes are excluded from like kind exchanges, and that likely includes foreign currency.

US CODE: Title 26,1031. Exchange of property held for productive use or investment
Summary Below:

TITLE 26, Subtitle A, CHAPTER 1, Subchapter O, PART III, Sec. 1031.
STATUTE

(a) Nonrecognition of gain or loss from exchanges solely in kind

(1) In general
No gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment if such property is exchanged solely for property of like kind which is to be held either for productive use in a trade or business or for investment.
(2) Exception
This subsection shall not apply to any exchange of -

(A) stock in trade or other property held primarily for sale,
(B) stocks, bonds, or notes,
(C) other securities or evidences of indebtedness or interest,
(D) interests in a partnership,
(E) certificates of trust or beneficial interests, or
(F) choses in action. For purposes of this section, an interest in a partnership which has in effect a valid election under section 761(a) to be excluded from the application of all of subchapter K shall be treated as an interest in each of the assets of such partnership and not as an interest in a partnership.

Hey Susie,
Thanks for all the research. That goes for others as well. I can barely find time to read it all let alone search for the stuff.

Besides your excellent research that indicates that things are on the move, are you hearing any info from your Kurd friends. No need to post specifics. It would be nice to know if those on the ground are still believers despite the delays.

Thanks

Originally Posted by celilo

Looks like notes are excluded from like kind exchanges, and that likely includes foreign currency.

US CODE: Title 26,1031. Exchange of property held for productive use or investment
Summary Below:

TITLE 26, Subtitle A, CHAPTER 1, Subchapter O, PART III, Sec. 1031.
STATUTE

(a) Nonrecognition of gain or loss from exchanges solely in kind

(1) In general
No gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment if such property is exchanged solely for property of like kind which is to be held either for productive use in a trade or business or for investment.
(2) Exception
This subsection shall not apply to any exchange of -

(A) stock in trade or other property held primarily for sale,
(B) stocks, bonds, or notes,
(C) other securities or evidences of indebtedness or interest,
(D) interests in a partnership,
(E) certificates of trust or beneficial interests, or
(F) choses in action. For purposes of this section, an interest in a partnership which has in effect a valid election under section 761(a) to be excluded from the application of all of subchapter K shall be treated as an interest in each of the assets of such partnership and not as an interest in a partnership.

This is why you want to have a tax attorney. I would have interpreted 'notes' as instruments such as promissory notes. But that's just me guessing.

Originally Posted by celilo

Looks like notes are excluded from like kind exchanges, and that likely includes foreign currency.

US CODE: Title 26,1031. Exchange of property held for productive use or investment
Summary Below:

TITLE 26, Subtitle A, CHAPTER 1, Subchapter O, PART III, Sec. 1031.
STATUTE

(a) Nonrecognition of gain or loss from exchanges solely in kind

(1) In general
No gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment if such property is exchanged solely for property of like kind which is to be held either for productive use in a trade or business or for investment.
(2) Exception
This subsection shall not apply to any exchange of -

(A) stock in trade or other property held primarily for sale,
(B) stocks, bonds, or notes,
(C) other securities or evidences of indebtedness or interest,
(D) interests in a partnership,
(E) certificates of trust or beneficial interests, or
(F) choses in action. For purposes of this section, an interest in a partnership which has in effect a valid election under section 761(a) to be excluded from the application of all of subchapter K shall be treated as an interest in each of the assets of such partnership and not as an interest in a partnership.

Thanks celilo,

Key here is to find the irs' definition of notes. If currency is not considered a note, then I would definitely say that usd is like iqd, exchanging currency for currency. No?

The U.S. State Dept. says not taxes on currency exchange. I was not sure if it was talking about in Iraq or U.S. I will post it and see what all you genuises say.

CURRENCY CONVERSION AND TRANSFER POLICIES

The currency of Iraq is the Dinar (ID - sometimes referred to as the New Iraqi Dinar). Iraq's current exchange system is characterized as a free foreign exchange system, with no restrictions on purchases or sales of foreign currencies. The Iraqi currency is fully convertible and can be exchanged freely with any other currency. In addition, there is free movement of capital without restrictions on capital inflows and outflows. Iraq's foreign exchange regime is also a multi-currency system in which foreign currencies circulate in the market and are accessible to everyone.

The exchange rate is generally determined on the basis of supply and demand conditions in the foreign exchange market. Banks may engage in spot transactions in any currency, but are not allowed to engage in forward transactions in Iraqi Dinar for speculative purposes. The Central Bank of Iraq (CBI) also can intervene, when necessary, in order to maintain stability in the foreign exchange market. In addition, there are no taxes or subsidies on purchases or sales of foreign exchange.

The Government of Iraq's monetary policy since 2003 has focused on maintaining price stability and a stable exchange rate. In addition, the Central Bank of Iraq conducts daily foreign exchange auctions to limit the impact on base money growth of the sale of the government's oil export earnings.

Iraq

I don't know anything about taxes!I would like to ask anyone on the forum if now would be a good time to really start focusing on the taxes we will have to pay.Should we talk with a tax attorney now or after the reval?.We certainly need all the advise we can get!

thanks, sarah!!!GO DINAR GO!!!!

I was just thinking to myself. With the investment law being voted on Oct 12th and the artical about 1 or 2 weeks ago saying that the Iraqi banks were teaching their tellers to work with foreign currency and how to check for money laundering for terrorist etc in the first part of October, I think that we are looking at about a 1 week window before the reval goes into effect. What else do they have left? The law will be past and the banks are prepared. All that is left is the large suitcases for the cash deposits.

Originally Posted by Vipor

...don't forget "fortune" (cookie).

Ahhh, yes. I love fortune cookies. They always say that I am destined for great fortune and they are correct!

(It would be great if we are in the final final fianl stages of the __________!)
During a reception dignitaries and Sadr City. Al-Maliki : We are in the final stages of confronting the security challenge
Sotaliraq.com
(Voice of Iraq) - 05-10-2006
Baghdad / commoners hailed
Prime Minister Nuri al-Maliki that the era of coups Crown Achermarhlh We in the face of the security challenge and will move beyond the current conditions in the next two or three years.

This came during his meeting yesterday with his office and the official delegation of tribal elders and dignitaries in Sadr City.

He added : Maliki We must get this city to its proper place in the area of services and the distribution of land to the city's population of the events relaxation of population and this requires measures to convert agricultural land to residential and ask companies to build housing complexes and this does not apply to Sadr City, but according to all Iraqi cities that suffer from the problem of Els Be affirming that every Iraqi will have a house to live in it.
For their part, the Senate and the dignitaries of Sadr City for their support of the government.