What tax do I need to pay after cashing in foreign currency?
I bought Iraq Dinar when it RV's and I cash it in for USD currency what will the tax's be on short term/long term? I heard it is a flat tax's of 15% across the board.I belive this is Capital Gains taxs would you know the Tax's amount? Thank you
Answered By: Dorot Law, PA
While more facts are necessary in order to provide a complete answer to your question, in general gains from the sale of a foreign currency are subject capital gains rate tax, which currently is at a 15% rate. Note that this is applicable to "long-term" capital gains, which are defined as gains derived from qualifying assets which were held for over a year. The above response is a general explanation of the taxation of foreign currency and may not be applicable to your situation depending on the specific facts. I strongly advise that you seek counsel to assure that your gains qualify.
Answer Applies to: Florida
Replied: 6/13/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answer Applies to: Florida
Replied: 6/13/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
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