Just a reminder about donating:
If you plan to donate to a charity, church, etc. listen up please.
Decide how much you wish to donate in US Dollar then, set aside the equivalent amount in Dinar.
Wait for it to revalue, so that its value goes up (very important).
DO NOT exchange THAT Dinar set aside for the donation!
Donate the Dinar directly to the charity or church of your choosing.
Provide them with instructions of how to exchange the donated Dinar to US Dollar.
Because YOU are not exchanging that Dinar, you are not liable for taxes on that amount.
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The charity or church is not liable because they are tax exempt (check to be sure they are a legitimate 501c3).
The charity, church, etc. will provide you with a tax deductible credit for the FAIR MARKET VALUE of your donation, based on US Dollar! (IRS Publication 561).
Example: You donate 1 million IQD (cost app. $1100).
Let’s say the rate is $3.00 (just for example), the charity, church, etc. exchanges that dinar and has a $3,000,000 donation.
YOU get a tax deduction credit for the fair market value, $3,000,000, in this case.
What did it cost you? The original purchase price of app. $1100.
You are also NOT paying the tax on that $3,000,000 that you would have, if you had exchanged it yourself.
It is a win, win, win situation!
Now, some say this will be a “non-taxable” event.
The truth is, we really do not know until the dust settles.
Either way, you do NOT lose by donating in Dinar.
If it is taxable, you just saved paying taxes on the donated amount, AND got a real nice tax deduction for the donation.
If it’s not taxable, you lose NOTHING!
Forget about long term/short term capital gains taxes on the donation.
It doesn’t matter how long you had the Dinar.
Because YOU are not the one exchanging it, YOU are not creating any capital gain!
The charity, church, etc. is creating the capital gain BUT, they are tax exempt.