BobTheTaxMan

The IQD is considered to be “ORDINARY INCOME”…the taxes due will be calculated by your personal tax bracket and marital status at the time you exchange your IQD for USD.  This becomes a taxable event…the maximum taxation of the IQD exchange would range from 37% federal only, up to a possible 13% [additional] depending on your state of residence. (13% is calculated on California).  There can be other taxes applied if you exchange more that $1 million in any given year…there’s an additional 3% tax they want to impose…You’re going to want to have a conversation with your tax professional and make sure you prepare for this appropriately. This is important.