Examples of exotic currencies include the Thai baht, the Uruguay peso, the Viet Nam DNG, and the Iraqi dinar. These are usually paired with other major currencies to make up the basket, (overall value), of a currency.
Treated as ordinary income.
Calculated on your personal income tax bracket and filing status.
The foreign exchange (also known as forex or FX) market is a global marketplace for exchanging national currencies.
Treated with special tax application of 60% long term capital gains with 40% short term, no matter the holding period.
Cryptocurrency, sometimes called crypto-currency or crypto, is any form of currency that exists digitally or virtually and uses cryptography to secure transactions.
Treated as a capital asset.
Long term capital gains if held more than a year, short term, (same as ordinary income), if held less than a year.
There isn't a right or wrong answer when it comes to planning for Windfall Gains.
There is only a preference in a chosen path. For some this opportunity looms like climbing Mount Everest, while others take it in stride and add it to their already established financial/tax planning.
Determining a financial/tax plan for the anticipated revaluation of the IQD depends on several things:
The main purpose in even looking at financial/tax planning is to HAVE PEACE WITH IT ALL!
Living in fear and uncertainty, isn't really living at all. It's a source of pain and it doesn't really need to be. You just have to decide for yourself what works, and what doesn't.
The following pages are intended to give you OPTIONS to ease the stress associated with NOT KNOWING WHAT TO DO. For some it will be doing ABSOLUTELY NOTHING AT ALL while others will want to prepare for many options and fulfill their long term plans for their financial future.
So let's get started:
No matter how much windfall gain you have, paying the, "FREEDOM TAX", will be one of the steps you will take. The FREEDOM TAX is the ordinary gains calculated on your tax returns and based on your adjusted gross income. Each tax bracket is applicable based on your marital status and other sources of income. You could potentially give up HALF of your investment gains in taxes if this is your only plan, but it will also be a required step in ANY PLAN.
Most windfall gain investors will want to cash in SOME of their investment to:
REMEMBER: Every time you cash in your investment for USD you are creating a taxable event. I would encourage you to seek professional help before just spending it all in a rush and then finding yourself in a common position lottery winners do; lots of fun until the IRS shows up at the door.
All information and discussions presented are for educational purposes only, are general in nature, and are not intended as investment, legal or tax advice. Each person’s personal and financial situation is unique and different, and the information provided may not apply to or work effectively for you. By signing up for, and attending or participating in any presentations, you agree that MaxPlans for Life, Inc., and all affiliate companies, representatives, associates, or employees (“Information Providers”) are hereby held harmless from all liability and loss associated with the information and discussion provided, and as to any action or strategy you may choose to implement with regard to the same. In all events, we encourage you to consult with qualified and independent legal, tax and investment advisors of your choosing as to any idea, strategy, or concept presented herein.
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