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

Originally Posted by krissy72

Is that true about long term capital gains tax next year being 5%, is there anywhere official this is stated, can someone point me in the right direction on where to find this as this is first time i've heard of this.

thanks
krissy

Here's some good news: For those of you looking down the horizon, the new 5% capital gains rate will be reduced to 0% (that's right -- nada, nothing, zilch!) in 2008.

But don't get too excited. All these new tax provisions sunset after 2008. Unless these changes are made permanent before then, the tax law will revert back to the way it was before the passage of the 2003 Tax Act. We still have a few years before the sunset provisions kick in, but remember that those provisions are out there.



Here ya go Krissy!

Fool.com: New Capital Gains Tax Rates [Tax Q&A] June 13, 2003

Originally Posted by crave681

Ok, a lil help please. I bought my nid in iraq from a bank, that our interpreter went into for me. Therefore no receipt.... what now? i guess just visit a tax lawyer, or an investment accountant?

I think you have to have proof that you were over there not sure though?.........If not you have to pay short term tax.

Originally Posted by Dinar-Excited

Hi Everyone,

As we are getting close I just called the IRS and after a very long wait I talked with someone at the IRS.

I asked what taxes would you have to pay if you exchanged USD into foreign currency and back to US Dollars. The guy told me that there was NO TAXES owed if it was cash for cash exchange for USD. Only if you were investing in foreign currency through a broker on the stock exchange where you would show a capital gain. I asked several times cash for cash with an increase in exchange rate is not taxable and NO LIMIT!!!!

What we have to be aware of is the Banks report to the IRS when you deposit more than $10,000 at a time I think. So keep receipts and good records.

Still check with the IRS and a Tax Attorney for yourself.

But this is information today 10-10-2006 from the US IRS Direct.

Dinar-Excited

Since the IRS says there are no taxes due on this, then I would think there would also not be state taxes applied? It is not a capitol gain and it is not earned income, so what would they tax us on. there has to be taxes somewhere - after all, this is the US!

Have you all read Dinar-Excited's thread about good news from the IRS?
Any thoughts to this and how, it it works this way, it will how much state tax we pay if any?
Thanks

Originally Posted by Dinar-Excited

Hi Everyone,

As we are getting close I just called the IRS and after a very long wait I talked with someone at the IRS.

I asked what taxes would you have to pay if you exchanged USD into foreign currency and back to US Dollars. The guy told me that there was NO TAXES owed if it was cash for cash exchange for USD. Only if you were investing in foreign currency through a broker on the stock exchange where you would show a capital gain. I asked several times cash for cash with an increase in exchange rate is not taxable and NO LIMIT!!!!

What we have to be aware of is the Banks report to the IRS when you deposit more than $10,000 at a time I think. So keep receipts and good records.

Still check with the IRS and a Tax Attorney for yourself.

But this is information today 10-10-2006 from the US IRS Direct.

Dinar-Excited

Way back in one of the Tax threads I mentioned this and most got worried. So I just left it at that for then. I am glad you brought this here. Thanks.

BTW, SafeDinar is not a Brooker. They are a Licenced Exchanger.

Originally Posted by ronbo

Since the IRS says there are no taxes due on this, then I would think there would also not be state taxes applied? It is not a capitol gain and it is not earned income, so what would they tax us on. there has to be taxes somewhere - after all, this is the US!

When you spend it. Or when you earn Dividend from it after Investments.

If no taxes are due then why does the bank have to fill out the form 104? I seriuosly think this is wrong and capitol gains will be applied.

Sorry to inform you, but studies have shown that 50% of the time, the IRS hotline provides the wrong answer. I believe that the tax code is ambiguous with regard to this transaction, but the IRS guidlines clearly indicate that more than $200 of value change is taxable; that does not mean that they are correctly interpreting the code either. Unless you have a ruling letter signed by the IRS indicating that this type of currency exchange is not taxable, be careful. Telling the IRS auditor that they told me on the IRS Hotline that I owed no tax on this trasaction will not help you one bit!

Originally Posted by cigarman

If no taxes are due then why does the bank have to fill out the form 104? I seriuosly think this is wrong and capitol gains will be applied.

It is a 8100 Forum that they fill out. It is the Law in the US to keep track of Drug Dealers, Money Laundering, and Terriost Finacing. But Good records is a must. If you dont feel good about it, then by all means consult in who you must.

I know we have gotten alkinds of reponses to this. But My CPA for many years even explained this to me after she had to get the information from the know. She had never had this before her before. I know that others have said what their CPA's have said.

I remember when the family and I went to Mexico for a vacation years ago that we exchanged for the Peso. We got back and still had plenty left cause in Mexico where we were the USD was wanted too. It just makes since to me that this is right.

But again do what makes you comfortable aways.

The currency tranaction reporting has noting to do with the taxability of the income. It is used to identify money laundering and fraud only.