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

Originally Posted by Cdn Scrooge

I do strongly suggest you contact an accountant prior to cashing in for some tax planning. If you don't know a good one, ask your bank manager to recommend one. Usually bank managers deal with many different accountants in connection with their corporate customers and would know the good ones.

Okay, pardon my ignorance, but sometimes I need things spelled out for me. Do we need an accountant, or a good tax professional? To me, they are two different things, and I want to be sure exactly who I need to talk to.

This is only confusion for me, because when I think of accountant, I think of someone who tracks an individual's, or corporation's, money, and makes sure people get paid, and all expenses are paid, etc. And when I think of a good tax professional, I think of someone who is going to look at your situation, and say, "Okay, I think we can file your taxes with form X, and we'll use Form Y to save you a little bit here, and there", etc., etc.

I realize that it's possible that I answered my own question, but I just wanted to be clear. Are we to find an accountant, or a tax professional? And if the answer comes back as "Accountant", why? Thanks for putting up with my thick skull this morning.

I called the IRS

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After being on hold for 1 hour I finally got the answer.lol. If you hold it for more than 1 year the profit will be taxed capital gains at 15%. If you hold it for less than 1 year, you will pay earned income taxes at what rate it puts you in for that year ( although the tax will be put on schedule D). That is straight from the IRS.

Originally Posted by cigarman

I called the IRS

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After being on hold for 1 hour I finally got the answer.lol. If you hold it for more than 1 year the profit will be taxed capital gains at 15%. If you hold it for less than 1 year, you will pay earned income taxes at what rate it puts you in for that year ( although the tax will be put on schedule D). That is straight from the IRS.

Hey my info was straight from the IRS also.

I am not trying to avoid taxes!!!

I just called them to find out what this investment falls under. As this looks like it could happen soon. I just had been told by someone that long term capital gains was 18 month and not 1 year 1 day. I wanted to check as I do not want to cash them in and realize that I needed to wait a couple more months.

This is just what the IRS agent told me I will not be taking his word as Gospel but I thought it would be something good to ask your tax Attorney. I never would have thought to ask if I had to pay taxes or not just how much do I have to pay.

This is a forum to share information. But you should always do your own research. IRS phone #1800-829-1040

But if taxes are due and probably some are who knows PAY THEM!!!!

PLEASE TAKE THIS AS JUST INFORMATION TO CHECK OUT THAT IS WHAT I AM DOING. I WILL STILL BE CHECKING THIS INFO TO SEE IF IT IS CORRECT BEFORE I CASH OUT!!!!!

Dinar-Excited

Originally Posted by WebGuy75903

Okay, pardon my ignorance, but sometimes I need things spelled out for me. Do we need an accountant, or a good tax professional? To me, they are two different things, and I want to be sure exactly who I need to talk to.

This is only confusion for me, because when I think of accountant, I think of someone who tracks an individual's, or corporation's, money, and makes sure people get paid, and all expenses are paid, etc. And when I think of a good tax professional, I think of someone who is going to look at your situation, and say, "Okay, I think we can file your taxes with form X, and we'll use Form Y to save you a little bit here, and there", etc., etc.

I realize that it's possible that I answered my own question, but I just wanted to be clear. Are we to find an accountant, or a tax professional? And if the answer comes back as "Accountant", why? Thanks for putting up with my thick skull this morning.

Ok, I think this again is the difference between Canada and the US. I have seen people (US citizens) referring to having their tax returns prepared by a "tax attorney". Here in Canada tax attorneys are few and primarily involved in matters involving large corporations and tax audits, and do not usually get involved in personal tax return preparation. Personal income tax returns are prepared by public accounting firms (CA's, CGA's and CMA's). There are the large accounting firms, of course, but there are also thousands of practitioners in small firms or operating as a sole practitioner. The type of accountant you are referring to above is not a public accountant. They are employees of corporations and if they are involved in tax preparation it is a part time thing usually for friends and family.

I guess it's a matter of terminoligy, but whatever you call them, the person you want to speak to is someone who is a professional tax preparer with much more knowledge and experience than you find at H&R Block. H&R Block is fine for the simple returns, but dealing with capital gains, etc is not a simple return.

Hope that helps.

Originally Posted by cigarman

I called the IRS

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After being on hold for 1 hour I finally got the answer.lol. If you hold it for more than 1 year the profit will be taxed capital gains at 15%. If you hold it for less than 1 year, you will pay earned income taxes at what rate it puts you in for that year ( although the tax will be put on schedule D). That is straight from the IRS.

Thanks for proving my point. Two calls to the IRS in two days, with two different answers to the same qeuestion.

I would trust what the IRS told cigarman based on a bunch of research on this topic.

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

Very smart Lady........Very valuable post I'll double check but thank you.

Originally Posted by wciappetta

Very smart Lady........Very valuable post I'll double check but thank you.

Hi wciappetta,

Nice to see you on here. definitely double and triple check and get a good Tax Attorney. But here is the info on who I talked to.

IRS Phone #1800-829-1040
Agent Name: James McCreel
Agent #: 9510632

Talked to him 10-10-2006

Dinar-Excited

Ask for a signed ruling and see what he says.

(I tacked this message here because it deals with IRS cash reporting)

There has been some talk about people cashing in some dinars at Las Vegas casinos.

LasVegasAdvisor.com has a different "Question of the Day" and todays question pertains to the casino's reporting of "cash transactions".

Las Vegas Advisor -Anthony Curtis - Questions of the Day

Q:
So what's the deal with Reg 6A expiring? Aren't the feds worried about the casinos laundering money anymore?



A:

Regulation 6A has been in effect in Nevada since 1985. State regulations have stipulated that casinos with annual gross gambling revenues of more than $10 million track cash transactions of more than $3,000, which are reported to the Gaming Control Board if they're "suspicious"; any cash transaction of more than $10,000 is automatically reported. The state has shared the reports with the U.S. Treasury, primarily the Internal Revenue Service. Regulation 6A was considered even more stringent, in some ways, than Title 31 of the federal Bank Secrecy Act; thus, Nevada casinos were exempt from Title 31, whereas casinos in all other states weren't.
Since 2001, the federal government has tried to crack down on money laundering linked to terrorists. The feds consider the so-called USA Patriot Act to be tougher than Reg. 6A and have been wanting to take over the regulation of cash transactions in Nevada. Nevada and Washington have been "negotiating" over the cash regulations for several years, but not surprisingly, the feds have prevailed.

The main difference between Reg. 6A and Title 31 is that the latter classifies casinos as financial institutions that are required to report cash transactions directly to FINCEN, the Treasury Department's Financial Crimes Enforcement Network; effective June 30, 2007, all casinos with $1 million in annual gross gambling revenues will be subject to federal reporting requirements, not just casinos with $10 million or more, as required by Nevada's Regulation 6A. This raises the number of Nevada casinos required to track cash transactions of $3,000 or more from 115 to 260.

Nothing else changes, except that the casinos now report directly to the U.S. Treasury Department (mainly FINCEN and the IRS), instead of to the state Gaming Control Board.

In fact, compliance life gets a little easier for the big casinos. Many of them already comply with Title 31 in other states. Also, federal law, unlike state law, doesn't prohibit certain transactions, such as changing $3,000 or more in smaller bills for larger bills, as Reg. 6A does.

And Gaming Control gets to free up agents' time from monitoring cash transactions to, for example, more frequent tax audits.

Finally, casinos with more than $1 million and less than $10 million in gross gambling revenues are mostly small slot operations, including bars and convenience stores, which see few if any cash transactions big enough to require reporting to the government.

So all in all, it's a net gain for Nevada. Nothing much changes for casinos, large or small. Nothing at all changes for gamblers. And state regulators have less responsibility.

(Note, the link above is only good for today (Wednesday), they switch the question every day)

Good Luck to All
Dinarstars

Originally Posted by cigarman

no gain shall be recognized for purposes of this subtitle by reason of changes in exchange rates after such currency was acquired by such individual and before such disposition. The preceding sentence shall not apply if the gain which would otherwise be recognized on the transaction exceeds $200.

This sounds like any exchange over $200 is considered taxable to me.

The Irs agent read me the law that Celilo had posted and said any funds over $200 profit had to be claimed. GOOD work Celilo