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rakhi.v, Tax Attorney
Category: Tax
Satisfied Customers: 4542
Experience:  Have graduated in Law with specialization & emphasis in Financial Laws and has working experience of over a decade.
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If holding 7,000,000 Dinar and want to give 2,000,000 to

Customer Question

If holding 7,000,000 Dinar and want to give 2,000,000 to friends and family when it revalues. I have held the Dinar over one year. With each friend or family not being over the 35% tax bracket, Would IRC 988 still take effect that they would only pay 15% in taxes if they were above the 15% tax bracket? And what about California state taxes?
Submitted: 1 year ago.
Category: Tax
Customer: replied 1 year ago.
I am aware of say 5% or so currency conversion of Dinar to dollars.
Expert:  rakhi.v replied 1 year ago.

Dear Friend,

Hello and welcome. Thank you for providing an opportunity to assist you.

I believe, you are holding Dinar in Forward Contracts. You CANNOT give Open Forward Contracts to anyone. You will have to close down those contracts, liquidate and convert them into USD and then give away the amount.

From what I understand from your situation, IRC would be applicable to you as it essentially deals with gains from forex contracts, etc. Whatever amount you then give would be treated as a "gift" from you to them.

Please correct me if I have not got your question / situation properly.

I am sure this would help. I wish you good luck.

You may please leave a positive rating if this helps as this is the only way we are compensated for assisting you. Alternatively, you may revert back with a reply if you need further assistance or if I have missed out on any aspect of your question.

Warm Regards

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