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

Originally Posted by Dinar-Excited

Hey cigarman,

I don't know why you are trying to prove me wrong I am only informing you of information that I received. I am not telling you to use it I am telling you to seek advice from a very good Tax Attorney. I have also called several times and been put through to a lot of agents and this is what I got. Who knows who is right. I am just saying check before you pay the Government they do not send refund checks. If Taxes are due pay them.

Dinar-Excited

Hey Dinar-Excited,
I was not trying to prove you wrong either. Just trying my redneck best to figure all this new stuff too.

Originally Posted by ronbo

Hey Dinar-Excited,
I was not trying to prove you wrong either. Just trying my redneck best to figure all this new stuff too.

I really miss wrote what I meant. I really do not think anyone is trying to be nasty. I am sorry for wording it wrong.

Hey this is a forum where we discuss all the ideas and come up with the best solution. The only time you would be wrong is not to share valuable information with everyone that could be relevant. There is no stupid question only stupid answers and all I can see on this forum is a bunch of very nice and wonderful helpful members.

I am happy to be part of this team!!!!!

Dinar-Excited

Hey guys, it has been a loooong day, and I will try to remember what my tax lady said when I called her today. I realize there are 1000s of opinions and agreements and disagreements, and she may be wrong also, but here it goes. She said that as long as I stay under $8000.00 , wait 3 days and on the 4th day do it again, etc. Also, I can cash in at many banks the same day as long as they are not affiliated with each other, and use the same process. She said I fall under the 15% Federal and 7% State, so keep back 25% and I would be fine. She said I may end up not having to pay in anything, but I didn't tell her HOW MUCH I planned on cashing in over a short time period!! Anyway, I'll investigate furher with a tax accountant also.

Found this on another site posted by paganiniraq


IRS Ruling Re:Foreign currency reconverted into U.S. dollars

--------------------------------------------------------------------------------

I found this elsewhere...useful as a guideline.



Direct from IRS ruling...Code Secs. 1031, 1221



<<FULL TEXT>>

26 CFR 1.1031(a)-1: Property held for productive use in trade or business
or for investments.
(Also Section 1221; 1.1221-1.)

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.


REV. RUL. 74-7 <<ENDNOTE 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.


<<ENDNOTES>>

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

<<END RULING>>

sorry if this is already posted, i didn't go back and reread everything to see if it was, if it is please delete it, I myself don't know the rules but I intend to definatly find out, wouldn't like to get rich and then spend time in prison for tax evasion
then i wouldn't get to enjoy all my wealth,
Just joking but anyway maybe this can help us all
OH yea by the way this was posted by paganiniraq on iif



IRS Ruling Re:Foreign currency reconverted into U.S. dollars

--------------------------------------------------------------------------------

I found this elsewhere...useful as a guideline.



Direct from IRS ruling...Code Secs. 1031, 1221



<<FULL TEXT>>

26 CFR 1.1031(a)-1: Property held for productive use in trade or business
or for investments.
(Also Section 1221; 1.1221-1.)

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.


REV. RUL. 74-7 <<ENDNOTE 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.


<<ENDNOTES>>

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

<<END RULING>>

Originally Posted by Cdn Scrooge

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.

Hi Cdn Scrooge,

Thank you, nice piece of info especially, for Canadians. I am from Canada too and was wondering how I could reach you besides this forum. The PMs are not allowed by the admin. My contact is [email protected]

This thread is wonderful education on tax matters. Best wishes to all.

Originally Posted by celilo

Here's the code if you're brave enough to try to make sense of it.

US CODE: Title 26,988. Treatment of certain foreign currency transactions

Thanks for this link. It can be useful, as soon as I find someone to who can tell me if I have made any sense of it. I think the reval is happening soon. I have that nervous feeling in my stomach. Thanks again to you and to all. Nidya

For Newbies....

For Newbies....

Good idea,

No doubt the questions will arise again with so many newbies coming over, so it is good to have answers to tax questions easy to read.

Good luck to all, Mike