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

Originally Posted by wciappetta

Publication 525 - Main Contents

Publication 525 (2006), Taxable and Nontaxable Income

Foreign currency transactions. If you have a gain on a personal foreign currency transaction because of changes in exchange rates, you do not have to include that gain in your income unless it is more than $200. If the gain is more than $200, report it as a capital gain.

Thanks but I am having trouble finding something on my situation. Help would be appreciated in leading me to the right IRS Doc.

Jan 12, 2007 - As a B-day Present My mother gives me large amount of Dinar. With it a notorized letter as to the date, amount of Dinar and value (under the 12,000.00 limit) of the gift at time of gift giving.

Question 1: Since value at time of gifting was under the 12,000.00 limit, does she have to pay a gift tax if it is valued over the 12,0000 limit at the time I exchange it?


Question 2: Since the person receiving the gift does not pay a gift tax, I take It I will just have to pay Capitol gains, or can I avoid that because it was a gift?

Thanks for helping me learn to fish
JD

question 1 : no : value at time of gift was under limit.
question 2 : yes : if you hold it under 1 yr--short term--regular income
over 1 yr (366 days )--long term depends on which income
bracket you are in. lowest income 5 % If you are in this
bracket if you cashed in on jan 14th 2008 you would pay no tax.
AS OF CURRENT TAX LAW --- pm if needed

Originally Posted by bigred52

question 1 : no : value at time of gift was under limit.
question 2 : yes : if you hold it under 1 yr--short term--regular income
over 1 yr (366 days )--long term depends on which income
bracket you are in. lowest income 5 % If you are in this
bracket if you cashed in on jan 14th 2008 you would pay no tax.
AS OF CURRENT TAX LAW --- pm if needed

Thanks Bigred,
Only question left then is this, when people say "Depends on what tax bracket you are in" is the tax bracket figured by your regular income or what it would be with the added value from the Dinar?

Example: If I made 20,000 per year on my 2007 tax filing and the Dinar added 1 million to that, would the capitol gains be in the bracket for 20,000.00 per year or 1,020,000?

Yes, I know - I already have a CPA in mind
But cant afford to talk to him until after the Dinar RV's

Originally Posted by bigred52

question 1 : no : value at time of gift was under limit.
question 2 : yes : if you hold it under 1 yr--short term--regular income
over 1 yr (366 days )--long term depends on which income
bracket you are in. lowest income 5 % If you are in this
bracket if you cashed in on jan 14th 2008 you would pay no tax.
AS OF CURRENT TAX LAW --- pm if needed

A question on Jan.14th 2008, lets say you cash in 1 Million Dinar= to $1,000,000. and your tax bracket was until that transaction at the lowest income, wouldn't this put you at the highest income, and if so what would be the long term rate you would have to pay?? Also is there no city tax involved in this kind of transaction. I'm in New York City.
Thanks, Barmurphy

To draft138 ---you would be taxed in the bracket for 20,000. income (taxable)
barmurphy----same answer to draft. Most states will tax your capital gains as ordinary income subject to the state income taxes rates.
NY city taxes would be as usual (unless there is a special exemption).
It may be wise to move to a state with no tax and establish residency
before cashing in.

for the record I am NOT a cpa or attorney

Is you are a US Citizen, you can go here to find out the rate for long term capital gain tax in your state.

State Individual Income Taxes

the federal rate is 15%

state ranges from 0% to as high as 12% if you live in North Dakota.

glad I don't

so if you live in a state that has 5.75% then you pay a total of 20.75% LT capital gain tax

cool, then this means some members of the forum wont be worried about the revalue until end of april and constantly making negative comments. YAYYYY!!!!!!

i hope! who knows how many negative remarks get deleted on a daily basis.... only the mods do

i think the only way we will see an end to that is with the rv

the only thing anyone should be complaining about is the gross amount of taxes we will have to pay

Originally Posted by The_Mad_Scot

i hope! who knows how many negative remarks get deleted on a daily basis.... only the mods do

i think the only way we will see an end to that is with the rv

the only thing anyone should be complaining about is the gross amount of taxes we will have to pay

And what may those taxes Be? I won't try to avoid them. It is the safest way to avoid prosecution. Pay the dues of your country. LOL and help the US pay for the WAR.

15% Long Term Capitol Gains Tax is not a gross amount. I'm lucky to be living in a no income tax state, so that is not an issue. But the interest and dividends earned on accounts is still a burden. But I can live with that.

Originally Posted by bob1940

And what may those taxes Be? I won't try to avoid them. It is the safest way to avoid prosecution. Pay the dues of your country. LOL and help the US pay for the WAR.

Agreed...and besides, 5% to 15% long term capital gains tax is peanuts.