convert Dinar to US dollars

When you convert Dinar to US dollars, you are not selling anything that brings taxable capital gain. You aren’t selling a house, or stock, or any of the normal capital-increasing gains. The IRS read-out below states this, and it makes sense.

Suppose that you never cash in your Dinar. You could simply fly to Iraq and spend the Dinar there to buy cars, boats, TVs, and lots of cell phones (for example).

At cash-in time, (after the RV) you are merely converting one currency to another – Dinar converts into US dollars. Assuming the RV has occurred, the dollars you get when you convert them have the same value as the Dinar. You won’t get anymore or less than exactly the newly assigned value of the Dinar.

Therefore the IRS states below that no capital gains tax is due when you cash-in Dinar. Read carefully the IRS findings shown below and verify them for yourself.

Beware - if you put your US dollars into an interest bearing bank account (for even one day), you will gain interest and you will owe tax on the interest gained for that one day. It’s best to deposit your dollars into a non-interest-bearing bank or credit union account.
Examine this IRS opinion regarding form 8938.
The form was designed to identify people with off-shore
bank accounts or LLCs, or Corporations and get them
to reliably report their holdings.
Fortunately, none of the hype [about form 8938] applies to private citizens who happen to be holding foreign currency such as the Dinar or Vietnam Dong.
IRS statements regarding Dinar follow:
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I, [xxx,yyy], took the time to call the IRS [Special Accounts Division]. I spoke to a supervisor named Ms. Theresa Klier (Employee# 1000349035). She informed me that this form 8938 has been in existence since June of this year [2011], following attempts by speculators in recent months to shield themselves from federal levies.

This obligation to report income that people derive from foreign currency accounts [bank accounts in other countries that hold non-US currencies] didn’t suddenly become law last week. [Reporting on your offshore accounts has been an IRS requirement for a long time.]

She said that the IRS is targeting a specific group of individuals who, until now, have been hiding assets with the specific intent of avoiding taxation by the Treasury Department. Per Ms. Klier, the federal government requires individuals to complete Form 8938 only under the following circumstances:

1) If you hold stock issued by a foreign corporation [because stocks eventually may generate capital gains when they are sold and US tax will be due.]

2) If you earn capital or have accrued interest from profits earned through a foreign partnership

3) If you hold notes, bonds, debentures or other debt instruments issued by a foreign entity
[ because notes and bonds produce capital gain sooner or later – for which you will owe US tax.]

4) If you’ve earned interest in a foreign trust or a foreign estate [tax on interest will be due – even in a US bank account.]

5) If you hold options or other derivative instruments with respect to any of the forgoing examples or with respect to any currency or commodity that’s entered into with a foreign counter-party or issuer.
[For example Forex Traders who use a computer to buy and sell currencies, are not converting [Francs] from one currency to another. Forex traders can buy 1000 Swiss Francs (a real purchase) and then sell them back ten minutes later, hoping to have made a profit. Tax will be due on that profit. In contrast, Dinar holders aren’t selling anything when they convert Dinar to US dollars. The US dollars will be exactly equal to the value of the Dinar – assuming the RV has been announced.]

***I made a point of asking [IRS Klier] if currency secured through a licensed currency trader [like Dinar Banker] would bring a private citizen under the purview of the laws that Form 8938 is designed to enforce and she said “NO”.

Other than the conditions referenced above, Dinar holders are only obliged to turn in Form 8938 if they purchased the currency directly from a foreign agent or a foreign bank or agent operating outside of our borders***
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Since various phone calls to the IRS have in the past produced a variety of answers, please seek local verification of the interpretations above.

Tax for capital gains produced in 2012 are not fully due until April of 2013, but quarterly payments are demanded throughout the year, and late penalties for missing the quarterly payments are very real.

Some people will probably choose to simply pay a flat 15% to the IRS as a safe action. (fine)

Why? Given rumors that:
- many banks can and do close for reasons of illiquidity or bankruptcy, and
- the FDIC did not recover client funds when MF Global bank went down in December 2011, and
- martial law may possibly be declared in 2012, and
- the dollar is going down in value (faster and faster), and
- high tax increases are coming as healthcare hollows out savings, and
- the price of gasoline may double, and
- ATM machines would stop working if a dreaded bank holiday is ordered, and
- gas pumps cannot accept credit cards when banks fail (requiring US dollar cash only), and
- banks or government edicts may ration your access to your funds (as in France), and
- wealthy people may be forced to pay much extra so that it can be distributed to pay the free health care that illegal aliens are to be given, and
- government committees will have direct access to all bank accounts to withdraw whatever they think you are able to pay to support welfare programs, (the wealthy should pay more, we hear), and
- A new gold or metals-backed US currency of unknown value may replace current greenback dollars.

Therefore some people may decide to over-pay, known or unknown taxes, up front while their funds are still liquid with US dollars in the bank (soon after the Dinar RV.)

newgoldbill2

We don’t know – you may pay $200 greenback dollars to get one of the (expected) gold-backed bills above, instantly cutting your savings in half. Let’s hope the new bills won’t cost $1000 dollars to get one gold-backed new $100 bill.

If 2012 goes smoothly, any excess paid into the IRS will come back to you in 2013, or will be sitting there in your IRS account as a credit against future taxes in future years.

Seek verification in writing that the five points above are trustworthy.

Two separate people on two separate occasions obtained the points above. Blue brackets above are my clarifying inserts.