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

Is that true about long term capital gains tax next year being 5%, is there anywhere official this is stated, can someone point me in the right direction on where to find this as this is first time i've heard of this.

thanks
krissy

Originally Posted by Pimpmaximus

With the example you provided, you are assuming short term capital gains tax no? I get a rate of about 35% from your example............

No reason to cash in under that kind of circumstance. Wait a years time (or slightly less depending on your exact purchase date...), lower your burden to 5% (the 2007 rate). If an hefty reval of 1:1 comes down the pipe you can bet the value wil go up in the short term as people flock to it.......

ALWAYS SAVE YOUR RECIEPTS....... it's the only documentation you have as to the date of purchase. If you want to qualify for long term capital gains rates in the future, you will need documentation of this sort.

Good luck alll........

Yes Pimp, I was using STCG as an exagerated example to convey my point of what would encourage someone to relocate. I, myself, plan on what you suggested. I will only cash-in enough to carry me for the immediate time while I wait for LTCG or even wait out until 2008 or 2010.

Originally Posted by krissy72

Is that true about long term capital gains tax next year being 5%, is there anywhere official this is stated, can someone point me in the right direction on where to find this as this is first time i've heard of this.

thanks
krissy

You can look it up under the Tax Relief or Tax Reconciliation Act of 2003. I'm not sure of the exact verbiage on the name....... also, the rate is either 10% or 5% next year for folks in the 10-15% brackets, I always get it mixed up. Its 15% this year I think for folks in higher tax brackets.

The fact that its dependent on your tax bracket makes this a bit more confusing.......

It didn't seem like a big deal at the time, but the timing of this act has more than grabbed my attention. The rate was due to reset to 20% and 10% long term in 2009, but Congress has extended its benefits until 2010.

Thats not to say that taxes will be zero in 2009 or 2010 as well, but they will be lower than the traditional amount of 20% and 10%

Originally Posted by Offshore-Wealth.com

...One more thing to understand. If you have $2M in your local bank, FDIC only covers $100K, so you would be at risk of losing $1.9M if economy collapses in US, which I believe it will. We all have heard about the run on banks in the last melt down, so don't think it won't happen again, as history has already proven everything repeats itself.

If the dollar does crash, don't expect the FDIC to even cover the $100k. Where would the funds come from? The FDIC is not like an insurance company that has a reserve requirement, but a guarantee by the Federal government. If the dollar crashes, the feds will not have money to pay you because it to is carrying a huge debt that will become more expensive to carry under a devalued dollar. More importantly, the governments source of funds, you and me, will have dried up. FDIC is intended to cover the failure of a bank and not an economy.

Originally Posted by celilo

If the dollar does crash, don't expect the FDIC to even cover the $100k. Where would the funds come from? The FDIC is not like an insurance company that has a reserve requirement, but a guarantee by the Federal government. If the dollar crashes, the feds will not have money to pay you because it to is carrying a huge debt that will become more expensive to carry under a devalued dollar. More importantly, the governments source of funds, you and me, will have dried up. FDIC is intended to cover the failure of a bank and not an economy.

Interesting,

Yes, sadly the FDIC can only cover 10% of all insured deposti funds, so it is no more valuable than the dollar which also cannot be covered with anything of value. When the economy tanks, so will FDIC with bank failures happening every day. We got a small picture of this when hundreds of savings banks went under a couple decades ago, so it is only a matter of time to see repeat performance.

Good luck to all, Mike

Originally Posted by tiffany

Hi Clueless

The way I'm thinking at the moment is I would like to exchange like, $2mil...If I stick it in a savings account, where it is 'safe and sound', it can earn interest to the tune of @ $120 thousand...still not sure how to go about the whole capital gain thing...I am rather leary of phoning a random accountant and having to explain myself....

Hello...I have foreign currency that I have the opportunity to exchange...in doing so, I will receive a substantial amount of U.S. Dollars which I will deposit into a bank account and perhaps purchase another house. Could you tell me how I would go about doing this both LEGALLY and ECONOMICALLY?


AND How do I know who is a reputable accountant in my area....

Yes, these are nice dilemmas to have...but I don't really care to have to go through the auditing process...big pain in the rear, my friend was audited and it was rediculous!

Right now, I'm honestly hoping that it pegs $.99 to the USD so that I can stay under the $10,000 mark on my $10k Dinars!

( OR if it MUST...It could peg at the $1.19 mark that was tossed around in the other thread...wouldn't break my heart!)

Tiff

Offshore-Wealth hit the nail on the head......

I too believe that the dollar is about to tank. I've always had a plan which includes a lot of foreign currency in the mix. I won't be exchanging all of my Dinar for dollars, that is a bad move IMO.....

Putting more than 100k in any one spot regardless of circumstance is a bad idea as well.

Sounds as if you would need the services of a wealth adviser. Note that this is distinctly different from a financial planner...... choose carefully, talk to many people to find out who the best option is in your area.....

Last of all Tiff, please don't go for the "cash in for less than 10k each time" scheme. Its a sure fire way to get burned down the road. Trust me, the IRS and Feds will be tracking transactions for a long time to come if this Dinar thing pans out. I wouldn't want to have to answer questions 5 years from now regarding exactly how I came to possess 10 million USD or so without having paid proportionately higher taxes........

Be prepared for an audit regardless. The IRS will want to know exactly how you managed to join the millionaires club so quickly without a lottery ticket.........

As I say: Just pay, then play...........

Thanks! I've never met such a helpful pimp! Just jokin'....seriously though, I realized shortly after starting this thread that the 'less than $10 grand method' was NOT going to work...too risky and dishonest too, (IMO) therefore I will cash in what I need to be completely out of debt and buy a couple 'fun' things and then wait for my 1 year anniversaries of my purchases to take advantage of the LONG TERM capital gains. I'm too much of a chicken to do anything else...contrary to my "Bad Girl" persona here! lol! BAWK!! BAWK!!

Originally Posted by Vipor

Yes Pimp, I was using STCG as an exagerated example to convey my point of what would encourage someone to relocate. I, myself, plan on what you suggested. I will only cash-in enough to carry me for the immediate time while I wait for LTCG or even wait out until 2008 or 2010.

Ok, a lil help please. I bought my nid in iraq from a bank, that our interpreter went into for me. Therefore no receipt.... what now? i guess just visit a tax lawyer, or an investment accountant?

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

Originally Posted by crave681

Ok, a lil help please. I bought my nid in iraq from a bank, that our interpreter went into for me. Therefore no receipt.... what now? i guess just visit a tax lawyer, or an investment accountant?

From what I've read, dated military orders or dated contractor airline tickets proving you were in country would suffice. Heck, your passport itself has a date stamped on it. Basically, as long as you can prove you were in country. From what I've read that is.