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

What if we formed a Dinars investment club company, and then gatherd our dinars in to this company. And after the reval our company would "loan" us money. Wouldnt that minimize our taxes?

some examples;

Back in our world, just try calling your persnickety neighborhood banker and asking for a loan with a wildly discounted interest rate, or one, like those given to many executives, completely interest free. WorldCom, for instance, is charging Ebbers just 2.3 percent on the $408 million he owes. Before going under, Global Crossing made low interest loans of $8 million to its then-CEO Tom Casey and $1.8 million to its president, David Walsh. And Enron's "Kenny Boy" Lay was given a $7.5 million line of credit, which he could then repay with company stock he'd been given or allowed to buy at a greatly reduced price.

I found this article so please share some more thoughts regarding this. Because i am not that familiar with this.

http://www.alternet.org/columnists/story/13208/

Interesting,

No doubt about it, there are many legal ways to defer and minimize taxes, and with the quality of people we have here, it would be worth looking into. There are several ways we can put this together, and the loan concept is not new, so loans are a strategy to defer which is what most will want to do. Some countries are worse than others on taxes, so I can see why this is a concern, so lets play it by ear and once peg is made, we can get serious on tax strategies.

Good luck to all, Mike

Hey Mike, I like the idea of a club to help those of us sitting on Dinars and waiting patiently for the peg.

Taxes have always been a mystery to me as i'm a Brit on the PAYE system where I work and get paid from my employer.

I don't have a clue about accountants, forms and taxes in general so a system where we could share information would help a lot of us i'm sure.

This was all discussed around Pips, once upon a time...Everyone was trying to get setup with LLC's (limited liability corporations). You end up paying taxes at a corporate rate on your "holdings" but pay yourself a salary. I suppose with this setup you could also give yourself "no interest" loans. Maybe someone with some greater knowledge of these could give us a quick and dirty lesson in LLC's...

Everwiser

As far I as am concern this is the best Tax free Investment their is. You can do this Tax free just get educated and have patients when it pegs. Dont run down to just one bank and cash in.

Some budies and I are going to go on long Harley Davidson ride and hitting a bank on every town until it is all cashed in. hehe maybe. With over a million now, that's alot of towns plus would need big saddle bags and a gunn. No problem with that.

When it pegs we will leave from Dallas Texas and go in what direction. ?????

Originally Posted by neno

As far I as am concern this is the best Tax free Investment their is. You can do this Tax free just get educated and have patients when it pegs. Dont run down to just one bank and cash in.

Some budies and I are going to go on long Harley Davidson ride and hitting a bank on every town until it is all cashed in. hehe maybe. With over a million now, that's alot of towns plus would need big saddle bags and a gunn. No problem with that.

When it pegs we will leave from Dallas Texas and go in what direction. ?????

I guess thats one way of doing things!

Originally Posted by Offshore-Wealth.com

Interesting,

No doubt about it, there are many legal ways to defer and minimize taxes, and with the quality of people we have here, it would be worth looking into. There are several ways we can put this together, and the loan concept is not new, so loans are a strategy to defer which is what most will want to do. Some countries are worse than others on taxes, so I can see why this is a concern, so lets play it by ear and once peg is made, we can get serious on tax strategies.

Good luck to all, Mike

I feel it might be the time to wake up this thread and see if there are any other Ideals or plans when this Baby revalues about the the tax base.

Has anyone made the calls? I am still waitng for some answers from my CPA , who has went upstairs to her Tax Attorney freinds.

Copied and pasted...

Correct U.S. Taxation on Dinar

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I have been a tax accountant for 29 years and also a financial planner. I own a substantial amount of Iraqi Dinar. Here is how it will be taxed the the IRS. This investment is not tax as regular capital gains are taxed. Foreign Currency is considered a "commodity" by the IRS and is taxed thusly: 60% is taxed at long term capital gain rates of 15%. The other 40% is taxed at ordinary income tax rates. This is all spelled out in Section 988 of the IRS Tax Code.
Combined the rates total 23%.
If you had one million Dinar and they were valued at one million dollars. You exchanged them in for the dollars and the amount you owe Uncle Sam is $230,000. You keep the $730,000 of that million dollars.

But, in order to do this, you must make an election at the time you exchange it and fill out the paperwork. Places that exchange currency know how to handle this. Go to Manchesterfx.com to see how it is explained there. If you don't make this election, then you'll be taxed at the highest current rate of 35%.

The one big advantage of this being classified as a "commodity" is that there is no specified holding period, as there is with long term capital gains. You can hold it one day, one week, one month, etc and it's still taxed at the 23%. If you exchange in a very small amount, then that tax rate would be lower, based on your ordinary tax rate.

Hope this clears up all the tax quesitons on our fortunes to be.

I knew this was a good ideal. Some of my buddys have found out this same info of the long and short term tax. Now this commodity part is very cool. I would never suggest Tax Avation which is a crime. But Tax Avoiding is a educated way of lower your tax with leagal loops. So this is a great post Jetsa1, Thank You.

Good advice,

Like any investor, you have to know how to protect your investment gains from overpaying on taxes, and given we in US know this will be considered a commodity and the tax liability ratios are 60/40 at 15% on 60% and 40% at individual income rate based on total income for year, this is why I advised not to cash out all your dinar at once.

There are many other strategies we can employ to lower these taxes, so don't be hasty and exchange out all your dinar unless you really need it now. Everybody has different situation, but the best strategy is to pay off all your debt as your first priority. Hold off on new homes and cars as such, for these are going to be falling as the economy falls, so be ready to secure your dreams when the drop in prices starts later this year or next.

Just knowing you have a reserve should provide enough of a natural high as you need initially, and being out of debt is one of lifes best scenarios to experience. (g) We also must look at investing, and many such investments can be made using your dinar, so this will not be taxed, and depending on how we structure our investments, via mutual club which we can incorporate, then we can defer taxes even further just like the rich people have been doing for years. Take a page out of Redstone's book where he just saved about $64,000,000. in personal taxes with a simple business to business transfer of stocks from one company to another. (g)

Good luck to all, Mike