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The IRS position is found in IRS publication 525 - www.irs.gov/pub/irs-pdf/p525.pdf
See page 30 - middle column - Foreign currency transactions. If you have a gain on a personal foreign currency transaction because of changes in exchange rates, you do not have to include that gain in your income unless it is more than $200. If the gain is more than $200, report it as a capital gain.
However if that is you held Iragi Dinars for investment or business use, Section 988 (foreign currency transaction) tax rules apply. Section 988 is ordinary gain or loss tax treatment.
Iraqi dinars that you own - is your capital asset. The gain will be calculated when you convert Iragi Dinars back to US dollars. As long as you keep Iragi Dinars - there is no gain or loss recognized.
Do you know the exchange on $60,000 Iragi dinars to US dollars and what bank would exchange?
As I know - Iragi dinars are not convertible currency. So you need to find an actual buyer for your currency.You may check the rate here - https://www.ibuydinar.com/
Also - Iragi dinars are sold on ebay - http://www.ebay.com/sch/i.html?_trksid=p2050601.m570.l1313.TR8.TRC1.A0.Xdinars&_nkw=dinars&_sacat=0&_from=R40You may check actual prices for Completed listings.
Are you sure.... I thought Chase and Wells fargo would exchange....
Unfortunately - no - none of banks would exchange Iraqi Dinars because that is not a convertible currency.
At least not yet...