Iraqi Dinar !!!

[b-dub_sr]

Interested to see how many of the .org family know about the Iraqi Dinar and what it could potentially be worth.

 

[lil charlie]

heres what Forbes has to say
Welcome to Forbes

 

[lil charlie]

lets try that again

Is The Iraqi Dinar Worthless Paper Or Maker Of Millionaires? - Forbes

 

[nabusa]

I think I have like 50 dinar left. I kept it as a souvenir when I left.

 

[Sous]

I have some, but only for souvenirs. I had a chance to buy a lot when I was there, but turned it down because my financial state at the time would not allow it.

 

[kuntreeboy]

I didnt even get any while I was over there!! Wish I would have but we were a little busy around that time! Damn the luck!

 

[Blanca BusaLess]

Interesting?

Somewhere I have one or two one dinars with Saddams pic on them. Not sure of the denomination?
You could and still can buy them in bulk on ebay.
http://shop.mobileweb.ebay.com/searchresults?kw=Iraqi+dinar&x=0&y=0&cmd=SKW

 

[b-dub_sr]

Yea, I have a few million and when I bought it was only $400 per Milliion.... Now its like $900 per Million, so I have already made my money back. The way I see it, is that its a investment. If thier money never revalues, my kids have some souvenirs from daddy's life...... If it does revalue in my favor...Im set!!

With everything that is going on with them and the middle east, this year would be a good time as any for it to do so..... Just Saying

 

[b-dub_sr]

Interesting?

Somewhere I have one or two one dinars with Saddams pic on them. Not sure of the denomination?
You could and still can buy them in bulk on ebay.
http://shop.mobileweb.ebay.com/searchresults?kw=Iraqi+dinar&x=0&y=0&cmd=SKW

The ones with Saddams pics are just souvenirs. They changed their currency many years ago.

 

[Blanca BusaLess]

If your hoping for an Iraqi dinar to be worth close to an American dollar don't hold your breath.

 

[b-dub_sr]

If your hoping for an Iraqi dinar to be worth close to an American dollar don't hold your breath.

Im not, havn't really thought about it to much since I bought it. I bought it as a long term investment and have already made my money back so... either way I come out ahead.

But there are some pretty interesting things happening right now tho:

1. Nuri Kamal al-Maliki (Prime Minister of Iraq) is here in Kuwait, doing business and signing needed paperwork to get them out of Chapter 7

2. The Arab summit is coming up the end of this month, which will more than likely, be held in Baghdad this year. In order to have a seat at the Arab summit, their currency has to be on the world market and there hasn't been a Summit since Iraq's currency was on the market. Which was worth more than the dollar the last time it was on the market.

3. Beginning of this year is supposedly phase 1 of economic recovery per an aggreement from Bush.

Im not at all saying that anyone will get rich from it but something is going to happen.... for better or for worse...

Im leaning towards the better.........lease:

 

[C6amar9O]

I had the chance to buy a bunch when I was there, I've got a few friends that loaded up on a few million.

 

[MC MUSTANG]

I suppose that the revaluation could be a huge gainer for some if it reverts to pre war value; but I think the government would tax it heavily as regular gains since it is physical currency.

 

[b-dub_sr]

I suppose that the revaluation could be a huge gainer for some if it reverts to pre war value; but I think the government would tax it heavily as regular gains since it is physical currency.

You are probably right, but if it came even close to the dollar. The gains would heavily outway the taxes.

 

[kromdom]

last rumor I heard, more internal strife in Iraq's future

 

[Blanca BusaLess]

I suppose that the revaluation could be a huge gainer for some if it reverts to pre war value; but I think the government would tax it heavily as regular gains since it is physical currency.

Mc there was one very intelligent response in the link he gave us that I read.
The poster said he was a tax atty for some big firm. Anyway he said attys and judges not only look at law but the theory around it as well. In his post he quoted the law where it says 'would be deductible' and theorize that it could be and not always would be. From what I remember?

 

[Blanca BusaLess]

Here it is:

I am the tax attorney at Green & Company, Bob Green’s CPA firm. We have blogged about Section 988 and forex in general. See our forex discussions at FOREX TAX TREATMENT

Execconsult commented that it’s not clear whether an individual who holds dinars for investment is subject to Section 988 or capital gains rules. The issue that Execconsult is referring to is how to apply Section 988(e), which provides that “personal transactions” are not subject to 988. Section 988(e)(3) defines a “personal transaction” to mean any transaction entered into by an individual, “except that such term shall not include any transaction to the extent that expenses properly allocable to such transaction meet the requirements of” Section 162 (business expenses) or Section 212 (expenses for the production of income). What is unclear is whether (1) the taxpayer must actually have such expenses, or (2) is it enough that if the taxpayer had such expenses, they would qualify for 162 or 212?

Tax attorneys look not only to the language of the Internal Revenue Code but also to the theory behind the Code. It is clear from the Congressional Reports issued at the time that this rule was adopted that option #2 is correct.

The legislative history (Committee Reports to ’86 TRA, , PL 99-514) states:
“Section 988 applies to transactions entered into by an individual only to the extent that expenses attributable to such transactions would be deductible under section 162 (as a trade or business expense) or section 212 (as an expense of producing income, other than expenses incurred in connection with the determination, collection or refund of taxes). Thus, for example, section 988 is inapplicable to exchange gain or loss recognized by a U.S. individual resident abroad upon repayment of a foreign currency denominated mortgage on the individual’s principal residence. The principles of current law would continue to apply to such transaction.”

“Would be deductible”—-not “are deductible”. It is enough that theoretically, if such expenses were incurred, they would be deductible.

This also makes sense from the point of view of tax theory. The point of this rule is not to create an arbitrary link to deductions, but to say that if the taxpayer is involved in Section 162 or 212 types of activities, this is not a personal transaction but a business transaction.

 

[b-dub_sr]

last rumor I heard, more internal strife in Iraq's future

I heard rumor of this also kromdom....

 

[Chris79761TX]

they will change the currency again. And all the dinar will be worthless just souveniors like the ones I have. Iraq is a bottomless money pit. I really don't see the dinar being worth anything. I know alot of guys while I was there buying lots of it. But like I said before the money market really takes off they will change the currency again

 

[b-dub_sr]

they will change the currency again. And all the dinar will be worthless just souveniors like the ones I have. Iraq is a bottomless money pit. I really don't see the dinar being worth anything. I know alot of guys while I was there buying lots of it. But like I said before the money market really takes off they will change the currency again

There was talk a little while back that they was going to get rid of all of the big dollar bills, knock some zeros off and let you exchange it for the new stuff at the rate of 1000:1....

This is expected to be happening in September...