Thread: New Info....for anything here. Taxes, Chit-Chat, Whatever.

DOREL ---Who ever told you --"Someone told me it only matters what previous years income was. --was correct.

Originally Posted by dorrel

Explorehot, thanks and I agree. The % difference with time does not justify the earnings potential, moving forward promptly.

The thing I was trying to asertain, was how does anyone ever use the lower tax bracket if the dinar jams you into the top bracket. Someone told me it only matters what previous years income was only. I dono.

Just dont cash it in till it is the rate that you are happy with, as long as it is before the Bush tax cut expires or the Dems take it away. If it means reduce your income in 2008 or 2009 to get in the lower tax braket before you cash in in 2010,do that , depending on how much dinar you have you will make up for the paycut with the 0% tax rate when cashing in your Millions of Dinars.

Originally Posted by Ialdoboath

So if I (as a Canadain) change it to USD I could then use the USD. Same for Americans... change it to CDN and you can spend the Canadian money. No change to your own currency. Is this a loophole?


What if I bought a Rolls Royce with IQD, had it shipped in and sold it here?
Are the profits taxable?

Ioldobath for us Canadians It's not just a matter of converting to Cdn or non-Cdn currency. If you are converting one denomination of NID (25,000) to other denominations of NID (50,100,etc) then you are merely exchanging NID for NID and there is no gain realized. However, if you change the NID into any other currency then our Cdn tax laws consider that you have effectively sold the NID and purchased a new investment in another currency. You must then calculate your gain on the sale of the NID by establishing the Cdn equivalent of the proceeds received and subtracting the Cdn equivalent of you original cost of the NID.

If you have converted to Cdn funds then the calculation of the proceeds is simple. If you have converted to USD or Euros then you must calculate the Cdn equivalent of whatever that currency is at the time of the transaction.

If you have converted to USD or Euros then you have started a new investment in a foreign currency and your cost is whatever the Cdn equivalent is and at some time in the future if and when you convert the foreign currency to Cdn funds or some other asset you will have a new transaction to calculate the taxable capital gain on.

Your regards to your example of buying a Rolls with NID you have again for tax purposes sold your NID for the CDN equivalent of the cost of the Rolls. You will then calculate your gain on the sale and pay tax on the taxable portion. You will now have an investment in a personal asset which has no future tax considerations unless you end up selling it for more than you paid for it. Not likely unless you store it for about 20 years and then sell it as classic. If you take a look at Schedule 3 in your tax return (capital gains schedule) you will see a section for Personal Use Property and another for Listed Personal Use Property. This is where you report gains on sales of things like classic cars, stamp or coin collections, art, antiquities, etc etc.

There is a thread in the main dinar section about Cdn tax laws. You may have to scroll way down or it may even be on page 2 or 3. Hasn't been a posting in there for some time, but there is some interesting info specifically for Cdns. Our tax laws are different from the US in this capital gains area.

Hey Team,
How will the dinar be taxed if you declare it when bringing it into the states? I don't plan to do this but many of my friends here ask me this all the time. I personally have several accounts here in kuwait. Will the U.S. gov have visability of these accounts? How will they be taxed if so?[/SIZE]

My guess is not to bring it in! I would look at setting up offshore accounts with Nordic 1 or pick one of the offshore accounts in the Carribean!

Originally Posted by bigred52

DOREL ---Who ever told you --"Someone told me it only matters what previous years income was. --was correct.

Exactly, that's why I laugh when I hear the libs spouting off about tax cuts for the rich. Those juicy tax benefits go to lower income people who probably can't take advantage of them anyway. It really is a joke.

Originally Posted by Original Spiderman

Hey Team,
How will the dinar be taxed if you declare it when bringing it into the states? I don't plan to do this but many of my friends here ask me this all the time. I personally have several accounts here in kuwait. Will the U.S. gov have visability of these accounts? How will they be taxed if so?

They should consult a good Attorney that specializes in Tax Law and an accountant that can help manage their money. There are several Tax Laws that are in effect for “Over Seas” income. I have NOT read the Tax Laws in this area for a long time, but as I remember the time over seas had an effect on the Tax Rate.

The best thing to do is make sure that they have this information BEFORE they plan their return trip to the U.S. If they plan on transporting their funds in cash, they need to declare it on the Customs Declaration Form. However, remember that large sums of cash coming out of Iraq, Afghanistan, and the Middle East will be subject to seizure/investigation into trafficking in drug/terrors activity. Make sure that they have a GOOD paper trail of their income!

Bank transfers would be the best way IMHO.

DesertWolf

Originally Posted by Original Spiderman

Hey Team,
How will the dinar be taxed if you declare it when bringing it into the states? I don't plan to do this but many of my friends here ask me this all the time. I personally have several accounts here in kuwait. Will the U.S. gov have visability of these accounts? How will they be taxed if so?[/size]

If you are a US citizen, you must list your foreign bank accounts on Schedule B Part III "Foreign Accounts and Trusts" to be in compliance with the law. You can't hide from the taxman.

Should all this 'Tax' talk not be in the 'Tax thread'?

Originally Posted by Seaview

Should all this 'Tax' talk not be in the 'Tax thread'?

Now that is a good point. However, the question was asked here and I think some good advice given with directions to further investigate for answers.

DesertWolf