What tax do I need to pay after cashing in foreign currency? 1 Answers as of June 14, 2011I bought Iraq Dinar when it RV's and I cash it in for USD currency what will the tax's be on short term/long term? I heard it is a flat tax's of 15% across the board.I belive this is Capital Gains taxs would you know the Tax's amount? Thank you
Dorot Law, PA | Datan Zvi Dorot
While more facts are necessary in order to provide a complete answer to your question, in general gains from the sale of a foreign currency are subject capital gains rate tax, which currently is at a 15% rate. Note that this is applicable to "long-term" capital gains, which are defined as gains derived from qualifying assets which were held for over a year. The above response is a general explanation of the taxation of foreign currency and may not be applicable to your situation depending on the specific facts. I strongly advise that you seek counsel to assure that your gains qualify.
Answer Applies to: Florida