The Iraqi Dinar Increases in Value "What Do You Do?" Tax Scenario

It's Sunday and you are thinking of sleeping in.

It's been a long week, and the world appears to be going bananas.

So far you have remained calm. You watch the weekly videos on the Iraqi Dinars, and you feel that you are on top of things.

You don't believe the IQD will revalue anytime soon.

It is 18 months from now and Iraq is doing what they always do.

Two steps forward, one step backward. However, they have managed to continue work on the Development Road project. There is a lot of interest from different investors, because they can smell the money.

You roll over and look at your phone.

Ten different messages: Iraqi Dinar Increases in Value. Over and over from different sources.

You jump to your feet as you head to the bathroom while scrolling your phone.

OMG the rate went up to 36 US cents to one Iraqi Dinar, almost overnight. We know you are looking for more but stay with me - this story must be believable.

You have five million Iraqi Dinars.

You quickly do the math as you clean your body and prepare to be wealthy.

.36 X 5,000,000 = 1.8 million USD

You finally get a handle on your emotions as you look for where and how you can cash in a percentage of your dinars. You want to keep two or three million because the rate could go up higher, or not.

You quickly realize that the currency is only worth 36 US cents in Iraq and maybe Jordan and Egypt.

You immediately get your passport as you scroll through Orbitz.com to find the cheapest flight departing to Cairo Egypt from New York City. You live in South Carolina and will take a flight from South Carolina to JFK in New York.

You call your job and tell them you have a family emergency.

You call a family member and explain the lie.

Your sister wants to fly to Egypt with you, but she doesn't have the money. You can put the airfare on your credit card, and you need someone to help you navigate a foreign country.

So, you are off to Egypt to exchange your Iraqi Dinar for US Dollars.

PROBLEM NUMBER ONE:

You can fly with two million Iraqi Dinar, but you will need to claim it AND once you claim it, the IRS will be notified.

You make the decision to be honest with the IRS so traveling with the IQD is no problem. You want to be sure that they do not take the currency from you once you land in Egypt.

Your sister says you can fly into Erbil, Northern Iraq, Kurdistan Region. She says Europeans go to Erbil all the time and there are frequent flights in and out of Erbil all the time.

You will need to make a decision at this point. Because the US State Department says: "Do Not Travel to Iraq" Reason: Kidnapping, etc. You decide to travel to Egypt and hope for the best.

You explain to your sister that once the plane lands in Iraq, your passports would say United States, while the other tourist passports would say European.  That is the difference that can make a difference. 

Let's say that you are able to exchange the currency in Egypt for 32 US cents for one dinar.

Let's say that you use a bank wire to send the money to your bank in the United States. This is doable and possible. The Egyptian Bank is used to doing business with international travelers and charges you an enormous amount for the bank wire, but the money is safe.

In total you wire back $630,000 USD to your bank.

Your bank fees in Egypt cost you around 5,000 USD for the exchange, bank fees and the wire transfer, and you keep 5,000USD for travel expenses.  Your sister wants to go shopping in Egypt. 

PROBLEM NUMBER TWO:

Your bank knows the money came from Egypt. The first thing they will do is notify the IRS and ask you a lot of question to make sure the monies are legal. The third thing they will do is hold up to 30% of the 630,000 USD for Federal Taxes.

The next thing your bank will do is put a hold on the monies for maybe ten business days. It depends on your bank's policies.

Your most pressing issue is how are you going to get the 189,000 USD back from the IRS?

This is when you join the channel's membership component and learn how to lower your taxes and get some of your 189,000 USD back from the IRS.

PROBLEM NUMBER THREE:

You remember in the back of your head that Sandy kept saying if you spend one dollar of your exotic currency profits on your cost of living, outside of health insurance, you are on your way to going broke.

You do NOT want to go broke, but you can't remember what Sandy recommended that you do!

Join the Channel's Membership to find out. The token fee is $2.99 a month.