(Dinar Recaps Note: This post is for informational purposes only. It is not legal, tax or investment advice. Dinar Recaps advises that everyone should do their own due diligence and seek local Professional tax, legal and/or investment advisers.)
[.~SpecialAgentGibbs] A little helpful information about donating to charities and churches (tithing). I am well aware that there is much noise on the net about this CE event being "non taxable" The truth is, no one really knows if it will or will not be. In the event that it IS a taxable event, here's a tidbit that help reduce your tax liabilities.
Whatever you have decided to donate or tithe, set aside the equivalent amount (based on exchange rate), in DINAR. YOU are not exchanging that dinar and therefore, are not liable for any taxes placed upon it. The charity or church is tax exempt and will not pay taxes on what they exchange.
ALL legitimate charities and churches should issue the donar an IRS form 8283 as receipt for your donation AND, under IRS regulations, your dinar donation MUST be valued in USD, at it's CURRENT MARKET VALUE. Say you donate 1 million dinar and the post CE rate is $3.00 YOU do NOT pay ANY tax on that 1 million dinar BECAUSE, YOU did not exchange it.
BUT, based upon it's new market value (rate), YOU get a receipt for a tax deductible donation of... $3,000,000 You let the charity or church do the exchange (guide them to the process if need be). They are tax exempt so, no taxes are due from them. Not only do you NOT pay any tax on that 1 million dinar but you now also have a $3,000,000 tax writeoff credit!
HOW SWEET IT IS! IF this event turns out to be NON taxable, you lose nothing. No matter what happens, by donating dinar, you will exchange less and you potential tax liability will be reduced dramatically. The numbers I used above are for example ONLY and in NO WAY infer an actual exchange rate.
BE SURE TO CHECK INTO ANY CHARITY YOU INTEND TO DONATE TO AND VERIFY THAT THEY ARE INDEED A REGISTERED 501C3 ORGANIZATION! IF said charity or church you donate to does not automatically offer you the IRS form 8283, ASK FOR IT!