Reg income no cap gains

[hopefultxn]

Everything that I have researched, read and been told by tax people completely contradicts this post. That is is stated in clear terms in publication 525 page 33, that profits from a physical currency transaction exceeding $200 due to changes in exchange rate are reported as capital gains.

Link to IRS publication 525 (2010) (http://www.irs.gov/pub/irs-pdf/p525.pdf)

[hopefultxn]

Most people seem to have a need to classify this as something that would fall under IRC section 988... However, as I have been informed, as well as read for myself, this section is stated for things like future contracts, options, debts, etc. Not for when people are holding an actual physical currency and reap benefits from a change in exchange rate.

What it comes down to really is that we don't know if there will be any profit made from this speculation. It's a little premature to worry about imprisonment, fines or penalties on something that hasn't made anyone a significant amount of money.

[studdgage]

Most people seem to have a need to classify this as something that would fall under IRC section 988... However, as I have been informed, as well as read for myself, this section is stated for things like future contracts, options, debts, etc. Not for when people are holding an actual physical currency and reap benefits from a change in exchange rate.

What it comes down to really is that we don't know if there will be any profit made from this speculation. It's a little premature to worry about imprisonment, fines or penalties on something that hasn't made anyone a significant amount of money.
Agreed my tax professional told me capital gains then we got to talkin about come to find out she had gotten alot of dinar a few years ago lol. Im goin with her advice besides if she is wrong she is liable for it lol!!!!