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

crave681, Your passport is stamped, that might be considered proof. As vipor pointed out.

This would be considered a Sec. 988 transaction. The following is the tax liability in a nutshell:

(e) Application to individuals
(1) In general
The preceding provisions of this section shall not apply to any section 988 transaction entered into by an individual which is a personal transaction.
(2) Exclusion for certain personal transactions
If—
(A) nonfunctional currency is disposed of by an individual in any transaction, and
(B) such transaction is a personal transaction,
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.

The bottom line is that if the gain exceeds $200 the gain is reported as ordinary income as interest earned and becomes taxable at the individuals tax rate.

RWS

That's strange. I never filled out a form, nor did my bank. I also ordered quite a few off of ebay. So who's tracking that money?

i think starting a family trust to deposit the dinars should be able to save
taxes. the family members would then be employed by the trust with
benefits, medical, life and maybe a car etc. the family trust would invest in
apprecating assets to keep the trust going long after i am gone (no death taxes). REMEMBER THE TROOPS.

Oliverp here, Just by an extra mil forthe gov,easy.

I wish I only had to pay 33%, Capital Gains in the UK is 40% !

Good evening! Here is something I got from Bank of America in a credit card offer:"Foreign Transactions"---Transaction fee for ANY transaction made in a foreign currency: 3% of the U.S. Dollar amount of each such transaction. This fee will be in addition to any other applicable fee." I probably got this credit card offer cause I purchased dinars at Chase and some came from the Bank of America. Hope this is useful to those of you that didn't know. Like me! Chase says their is no fee if you have an acct. with Chase. Nidya

In the past most credit cards did not charge for international purchases. Recently (with in the last year) most credit card companies have changed their policy to include the 3% charge for purchases in foriegn countries. I hope this helps you.

Originally Posted by Nidya

Good evening! Here is something I got from Bank of America in a credit card offer:"Foreign Transactions"---Transaction fee for ANY transaction made in a foreign currency: 3% of the U.S. Dollar amount of each such transaction. This fee will be in addition to any other applicable fee." I probably got this credit card offer cause I purchased dinars at Chase and some came from the Bank of America. Hope this is useful to those of you that didn't know. Like me! Chase says their is no fee if you have an acct. with Chase. Nidya

Interesting,

Most credit cards convert to whatever currency is used in country you are making a purchase in, so this sounds like a rip off to me, 3% is way more than the conversion fee I am paying which is only .50 each transaction.

I also find it distrubing to think your purchase with Chase of dinar would be shared with BoA for targeted marketing purposes. Just another example of how our private personal data is being sold to others for profit without our knowledge.

Good luck to all, Mike

My husband just called a Tax Manager. When he told her about our investment in the NID; she immediately said "you must be a finance major, or have a terrific financial advisor". LOL

She also said that even though we live in TX (no state tax) we pay 35% right off the top. It will be due April 15.

She said that if we would have held on to it for over a year, we would only have to pay 15%. My question is how does the IRS know when/how we purchased our dinar?