Yes!! there will be taxes owed and there is a specific statute that covers this type of investment. IRS title 26 Section 988, gains/losses from currency exchanges. This will be handled as ordinary income but make no mistake, we will be required to pay taxes, not when we exchange but either by paying estimated taxes when we generate the gain, or at the end of the year when we file our tax returns. Having worked in a federal task force I can tell you that the IRS will certainly be aware of our windfall and documents will be generated from the bank where we exchange our dinar to notify the IRS. Consult your tax professional for advice. :K-Dog
