My question involves estate planning in the state of: WA
Unable to locate a more appropriate topic, I post here.
Ultimately, this is a question for a tax attorney. Still, I bet someone understands some general principles asked about here.
Example: A person spends $5,000 purchasing a foreign currency which he takes delivery of and holds. Two months later, it is valued at $25,000. They cash it in realizing a $20,000 profit.
How is this looked at and taxed by the IRS? Short term capital gain? Ordinary income?
Is it, like the hard assets gold and silver, considered a 'collectible' and taxed at a 28% rate? If so, is that tax in addition to (or in lieu of) income tax on the remaining amount?
I'd love to see some informed reflections on this.
TIA
drcarl

