Turkish Coin
Turkish Coin
U.S. Government tax on foreign currency exchange?
To begin, I have been collecting paper and coin currency's since a child. My wife was going through all of my currency to see how much they are worth because we want and vehicle and had quite the surprise.
We found that I own a $250,000 Turkish Lira that when converted into American currency equals approximately $167,000. What I want to know is if I will be taxed on this, and if I will, how to avoid it.
Regards,
Jeff (asking for a friend)
The old Turkish Liras' were coins, not bills. The current exchange rate via IRS website for Turkish Lira to USD is approximately .67 USD per Lira.
There is an example of the old coins and the new bills here. If you want to see the 250,000 bill you'll have to scroll down.
http://newlira.com/2004/11/new-turkish-lira-note-and-coin-designs.html
It is the new turkish lira, and I already own the item, so it doesnt really make sense for it to be taxed. The old Turkish Lira is in the form of a coin, the one that I own is paper currency.
Sorry, friend, but if you have a 250,000 lira note, it's OLD lira, not new lira. The largest New lira note is 200 lira. There are NO 250k New lira notes.
The 250k lira note was issued between about 1990 and 2005. It was the 2nd smallest denomination. The smallest was 100k and the largest was 20 million.
Old lira came in notes and coins both, just as New lira do.
The 250,000 old lira note might buy you a stick of gum in Istanbul but not much else. Old lira notes (250k and larger) are exchangeable at branches of the Central Bank of the Republic of Turkey through the end of 2015, at an exchange rate of 1,000,000 to 1. So your 250k note is worth .25 New lira, or about 16 cents US.
If you have any gain on it, the IRS probably won't be interested. Most likely you have a loss though as the Turkish lira took a major beating in the 1980s and 1990s.
Scroll Down To Find Turkish Coin On eBay Below:
![TURKISH OTTOMAN } SILVER COIN 1909 1327 Hicri ] 20 KURUS AU](http://www.net-coins.com/images/e/190636350062_0.jpg)
 TURKISH COIN SILVER 1 LIRA 1937 XF US $39.95 
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 ANTIQUE TURKISH OTTOMAN ISLAMIC AH 1223 COIN x US $105.00
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 TURKISH ANTIQUE OTTOMAN ISLAMIC AH 1223 COIN x US $61.00
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 OTTOMAN EMPIRE TURKISH SMALL PARA COIN AH 1255 US $36.00
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