QUESTION
What tax do I need to pay after cashing in foreign currency?
Asked on Jun 11th, 2011 on Taxation - Florida
More details to this question:
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
1 ANSWER
Estate Planning Attorney serving Aventura, FL
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Dorot & Bensimon PL
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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.
Answered on Jun 14th, 2011 at 9:37 AM