Dinar Observer Daily

Kaperoni – Dinar Guru    So as we enter March there still is no RV or RI …Why?  Because there will never be a an overnight event.  Monetary policy does not work that way.  This is a process and as investment comes into Iraq the dinar will rise gradually via a float.  It could take 6 months to a year or more to rise to a level we all are looking for.

MilitiaMan – Dinar Guru   Internationalism…Can’t hide it now… The Cat is out of the bag… Even the Governors of the Provinces and the Religious Authority is calling for distribution of the Iraqi wealth and now we see Citi Bank able to do similar distribution of timely payments through a chunky credit facility. These latest actions from the Governors meeting this last week on 2019 Budget allocations to be disbursed for re construction projects and Qasim al-Tai religious authority telling PM Mahdi to distribute the wealth to the citizens in a fair and equitable manner all around the same time frame of the passing of key laws this week.  My bet on this is the Citizens are squawking even louder now that the Tariffs are being enforced.  They signed this credit facility on Thursday of last week!!! Same day the Governors were meeting on disbursements to the provinces. See the the progress in play now? I sure do.. Man it looks good too! imo.

BobTheTaxMan  if you show a huge amount of charitable contributions that actually exceed your income it’s going to get audited.  You can plan on it…good tax planning always has good records.  As long as you are compliant with the rules and regulations imposed by the IRS you do not have to fear it…I think it’s absolutely phenomenally marvelous the changes that have got on for 18 to 19 which makes this investment we are all involved in, wow, it’s just a huge huge blessing.  It’s going to be great!  But you need to look at the other side of the coin.  This is what the IRS is going to be looking for.  Be prepared.  Play the game.  And you will win.  [Post 8 of 8]

BobTheTaxMan …If you made over a certain amount of money you did not get to use Schedule A.  Period.  That got taken out for 2018.  There are no limits…Now charitable contributions: have been in the 30% to 50% allowable depending on your income.  Now that’s changed.  In 2019 it went from 50% to 60%.  This means a whole massive amount of tax liability that would have occurred because of having this money you can write off as charitable contributions.  Wow!  That is freaking awesome!  But you also need to remember… [Post 7 of… ]

Randy Koonce – Dinar Guru    Based on the information I have been able to get, we could see it as soon as this weekend, but hopefully no later than the 3rd week in March. That is our latest, and hopefully the last window. For some of you the tax consequences will be significant. Pay your taxes, but also be wise in the speed and manner in which you exchange…Take your time. Be deliberate and intentional. Be smarter than you’ve ever been in your life. There will never be another opportunity of this magnitude in our lifetimes. …ALSO this is very political so as I am very confident something can come up and delay. So do not quick breathing…We are close.. Every large bank will exchange… RELAX the RV is coming…Breathe…Check…CBI…every day to see if it has changed...   [post 2 of 2]

Randy Koonce – Dinar Guru   Ladies and Gentlemen of Dinar-Land. Please put your tray tables in the upright position, and make sure your seat belts are fastened. It truly looks like we are on the final approach and that our very long ride is about to come to an end. I hope you have given much thought to, and made very wise plans as you exit the ride.  As you all are aware of, this Iraqi dinar revaluation has taken many unexpected and unplanned twists and turns. Barring another new unforeseen bump, we are looking at March to be our final month of waiting for this to happen.   [post 1 of 2]

BobTheTaxMan  …And is it really worth cashing in all this dinar and ending up with this huge amount of capital and finding yourself under the gun scope of the IRS.  If you have an exorbitant amount of income that show up, I mean a great big chunk, you can justify it, that’s not the problem at all, but I promise you if they audit you and you have not paid your taxes on it they are going to hit you with penalties and interests.  And it’s going to be huge.  Just be aware.  If you take a lot out and your tax returns jump way up high you might set yourself up for an audit.  Plan on it.  It’s going to happen.  THREE:  One of the amazing blessing that’s come from 2018 to 2019 taxes is the simple fact that in the past Schedule A  which is where you put your itemized deductions and report your charitable contributions had limitations on it. [Post 6 of… ]

BobTheTaxMan  2.  …tax planning is absolutely critical…if you run out and cash in all this dinar three things are going to happen.  ONE:  You have to make dang sure when you cash in that dinar that you pay your taxes on it.  Don’t let it get away from you.  Calculate it.  Pay it up front.  Pay it quarterly.  Pay it monthly.  When you go get money out of the bank, pay taxes.  Just do it.  That way you don’t have to worry about it.  TWO: Realize if you pull a lot more money and show on your tax return than what you ordinarily would have, you have lined yourself up for an audit. Part of the tax planning is…where do you draw the line?  How much do you really need?  What tax bracket do you want to live in?  [Post 5 of…]

Adam Montana – Dinar Guru   We can certainly have an RV without the HCL, but doesn’t it make sense that a written agreement that guarantees a portion of the spoils to a major part of the Iraqi (bicracky) population would grease the wheels?  I think so. …Over the years, I’ve given more than a few deeper looks into my reasonings for the importance of the HCL but I hope I’ve also expressed that it’s not a “requirement”.   The Iraqi dinar will increase in value with or without an official HCL. Personally I think the rate will be stronger with the HCL. Also personally, I’d be happy with a lower rate without an official HCL.   [post 2 of 2]

Adam Montana – Dinar Guru   […why must they pass the HCL law before there can be a revaluation of the dinar?]     HCL is indeed merely a profit sharing agreement, and until there’s a decent agreement in place regarding profit sharing, we have a difficult road to travel for an RV, which is all about profit. The profits little people like us will see from a change in the exchange rate of the Iraqi dinar are small compared to what larger institutions will realize. This is something that happens every day, and that’s not particularly important. What IS important is this;   [post 1 of 2]

BobTheTaxMan   …But my suggestion would be don’t mess with it.  take the conservative side.  File it as ordinary income.  Pay your taxes that’s on it.  And keep your ear to the ground.  Any kind of new changes that are going to come out in this particular arena the dinar crowd is going to pick it up and run like crazy with it.  But most importantly if you have a half decent attorney or CPA who’s familiar with Forex they’re going to say “Guess, what?!”  and then you go back and amend the return.  So if you amend the return.  You’ll get back the amount of money you didn’t have to pay taxes on PLUS you’ll get interest from the federal government and if your state…has an income tax they have to pay you interest as well.  Hmmm…sounds like a good plan to me.  The thing I like about it is that I don’t want to have to walk around downtown looking over my shoulder worrying about the IRS getting on my case….My invitation is to realize that if you elect to file capital gains you’re walking the line.  That line could turn and snap you.  If it does snap you it’s going to cost you more money.  If you take the line and be more conservative and pay it as ordinary income whatever initial taxes you paid you have three years to recover.  And within three years they’ll be some sort of an answer that will be well known…let it go.  I assure you you’ll be a lot happier…  [Post 4 of…]

Currency365 – Dinar Guru   WE ARE OFFICIALLY IN GREEN LIGHT HIGH ALERT.

Adam Montana – Dinar Guru   I’d say things are still pointed the right direction.  OIL took a tiny step backwards, but still tracking for a win if my target of $60 is correct. In addition to what I’m hearing from the other side of the pond, and what my own experience and insights conclude, I still believe that $60 mark is where we want to be headed. Hitting that price, on the current trajectory, is solid evidence of stability in the markets and will be reassuring to the CBI so they can take some bold steps. There is a low rumble off in the distance that sounds like an HCL thunderstorm,so we’ll keep an eye on that.

BobTheTaxMan   It does not qualify [reference post 2] …I’m going to make it real simple for you.  My research has shown this…It’s going to be treated as ordinary income and that’s that.  Now, what would happen if you elected to do it as capital gains and file your return?  Here’s what will happen…if you are incorrect and it comes back it will take two years before you hear from them.  The amount of penalties and interest that is going to be accumulated over that two year time frame is…going to be big.  So you have a choice.  On my side I tell people treat it as ordinary income.  Yeah you’re going to pay more taxes.  That’s true you’re going to pay more taxes on it but I do know this much, within 3 years, because you have three years to amend that return to get money back, within three years somewhere along the line someone is going to get a Letter of Definition from the IRS that definitively says this is how we’re taxing it…and/or there might be rule changes in the IRS that converts this from ordinary income to capital gains.  That might happen.  I’ve seen it before. [Post 3… ]

BobTheTaxMan    1.  I have had a lot of people send me email saying, “ This person is saying this is going to be capital gains and NOT be ordinary income.”  I’ve even been sent long convoluted processes someone has created for being able to move money in different ways so that the categorization was redone.  I’ll tell you from my own studies, one of the things when I got into this thing over a decade ago…I spent a lot of time researching it.  I contacted Several of my financial advisors who worked with their tax attorneys.  I got the leading CPA of the east coast who deals in Foex currency exchanges and his research came up with the exact same thing that the attorneys came up with.  And that is there are two ways that people might misconstrue that this is supposed to be taxed as capital gains. I can tell you right now from the research they did and my own research the dinar does NOT qualify.  [Post 2 of… ]

BobTheTaxMan   For those of us who have been riding this cotton picking train of the dinar for so long you couldn’t get a better tax opportunity than we have now.  It’s just absolutely freaking amazing what we have.  The new rules brought in under the Trump Administration give us so much leeway and so much opportunity to be able to save on taxes, to share this with everyone we love, less consequences. The whole tax planning game has changed immensely because of the changes in 2018  and 2019…As Paul Harvey used to say, “Here’s the rest of the story.”  There are some things about the IRS, particularly those who come into a lot of money in a hurry that have certain triggering points.  I’ve got three of those I want to talk to you about.  [Post 1 of… ]

Delta – Dinar Guru NOTHING MAKES SENSE WITH IRAQ…LOL… BUT IMO IT’S COMING…

MilitiaMan – Dinar Guru   Article:  “Report: More than one million people visited the Baghdad International Fair”  If one were to have watched Trump talking to the Farmer on Friday, one may want to smile. Trade. Fair Trade…

Don961 – Dinar Guru  Article:  “Iran : The busy days of ATMs / new banknotes began”    imo … this may be a sample of the type of article we may witness concerning Iraq’s currency in ATMs in the future …freely speaking about new banknotes being distributed … plain language … no guessing … no cryptic language or meanings … just business as usual …

Kaperoni – Dinar Guru  Some still want to believe in an overnight event such as a RV or RI.  But it is physically impossible for the CBI do such a thing.  To much money in circulation, could never afford it, nor does it make any scientific/logical sense.  What does make sense is for Iraq to raise the value gradually.  Such an event would allow for the reduction of dinar, allow for the CBI to profit from the appreciation and reduce inflation as investors/investment comes into Iraq.

EHankins – Dinar Guru   “REPORT: IRAQ ANNOUNCES THE DISMANTLING OF THE LARGEST FUNDING NETWORK FOR “DAHESH”  Quote:  “A recent report said that the State of Iraq announced the dismantling of the largest funding network of the group “Daash” terrorist.”  …stopping the thievery and future potential corruption obviously is a very wise move of opportunity just imagine the possibilities of what the bad guys could have would have done with the stronger dinar when the RI happened … It is extremely encouraging seeing them stopped…

Delta – Dinar Guru   “REPORT: IRAQ ANNOUNCES THE DISMANTLING OF THE LARGEST FUNDING NETWORK FOR “DAHESH”  Quote:  “A recent report said that the State of Iraq announced the dismantling of the largest funding network of the group “Daash” terrorist.”   …IMO THAT IS WHY THE CBI DID NOT RI YET… BUT NOW IT’S CLEAR TO GO…THIS IS HUGE…ALSO THEY WERE USING THE CBI AUCTIONS FOR FUNDING…THAT’S WHY IMO THEY HAVE TO STOP THE AUCTIONS ASAP..

Kaperoni – Dinar Guru   …the IMF cannot force CBI to do anything…that being said the CBI is a member in the IMF and agreed to the conditions of that membership and one of the conditions stated says member countries have to strive for Article VIII as soon as possible.  So I do not think the CBI will drag their feet to meet move from Article XIV to VIII much longer when that is the intent in the plan.

EHankins – Dinar Guru  Article:  “Signing a commercial economic agreement between Iraq and Kuwait”  Quote:  “the Iraqi-Kuwaiti agreement is a first step in the right direction to activate economic and trade relations and overcome the problems of the previous phase.”   [This is a significant piece to understanding where we are in the MR…we are at the doorstep to our reward.  Just ask yourself, why was this done now and so quickly.] I couldn’t agree more …. in my opinion this screams we indeed are on the other side …. both feet planted firmly because we have been prepared in advance.

Chattels – Dinar Guru   Article:  “Iraq strengthens its reserves of gold to 96 tons”  Countries such as Iraq, India, China and Kazakhstan were among the top gold buyers in 2018. According to data, Iraq increased its reserves last year by 6.45 tons, bringing its total gold holdings to 96.3 tons.

Adam Montana – Dinar Guru    I spend hours every day researching and communicating with my people on the Iraqi Dinar, international business, asset protection, etc…There are people I work with who know how important it is to get me my information by Tuesday, and are extremely dedicated to their roles…  Today is short and sweet. There is nothing negative to report – Parliament is working, OIL is still going the right way, and my gut tells me they are just kicking a few last details around.   If something counter productive were to happen right now, I’d take a harder look at things… but that’s not the case.  Everything is lining up!  Parliament: still working, and working effectively. OIL: still moving towards $60, and doing it steadily.  The only thing we can ask for right now is that BOOM! HCL news.  Keep your heads on straight! This really feels like the home stretch.

Chattels – Dinar Guru   Article:   “Tuesday, February 19, 2019  Security In Iraq Feb 8-14, 2019”   There was another week with few security incidents in Iraq. For almost four months now the country has averaged 20-30 security events each week and the second week of February was no different.

Kaperoni – Dinar Guru   If and when the CBI begins to float the dinar it could take 6 months to 2 years to delete the zeros (raise the value enough where the zeros are gone).  Remember if the CBI is going to do this event it will be in conjunction with investment capital coming to Iraq.  The more capital the greater the inflationary pressure meaning the faster it could rise.  The 2012 IMF Article IV Consultation with Iraq described the process and event as the Balassa-Samuelson effect.

Kaperoni – Dinar Guru    Things have been pretty uneventful…the last few weeks or so because Parliament has been on recess. Look for things to pick up in March…

Mountain Goat – Dinar Guru   I want to make one other point here too and that is the connection of the RV to the Iranian influence and militias. So how can they stop the auctions and launch the lower denoms and thus raise the rate if the militias are going to cause trouble and spread counterfeit currency only causing a disaster in the dinar rate anyhow. So like I have been saying all along, they must get rid of the Iranian influence if they are ever going to RV.  [post 2 of 2]