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OP could also buy a POS cheap house that he can probably put very little down on. Get a small mortgage and pay a contractor cash to bring it up to snuff.
I really hate to see all the nasty and hateful responses that were posted to my simple question. First off even if my parents did work of the books they have never used any of foodstamps or medicaid. Unlike all the lazy bums on LI they get up every morning at 4am and drive a taxi cabs until 8 or 9pm to make a nice life for their children. Let's not pretend that all these blue color Irish Italians who live on LI pay all their taxes and do everything by the book. We have met plenty of construction, plumers, electricials who were begging us to pay them partially or fully in cash, so lets not get all bent out of shape.
Getting back to my question, all I gather from your responses is that there is no way for me to legally purchase a house.
Yes, there are plenty of ways for you to legally buy the house with that money. The question is, how many problems do you wish to start for your family who earned the cash off the books and didn't claim it?
I really hate to see all the nasty and hateful responses that were posted to my simple question. First off even if my parents did work of the books they have never used any of foodstamps or medicaid. Unlike all the lazy bums on LI they get up every morning at 4am and drive a taxi cabs until 8 or 9pm to make a nice life for their children. Let's not pretend that all these blue color Irish Italians who live on LI pay all their taxes and do everything by the book. We have met plenty of construction, plumers, electricials who were begging us to pay them partially or fully in cash, so lets not get all bent out of shape.
Getting back to my question, all I gather from your responses is that there is no way for me to legally purchase a house.
You may want to check with an accountant and/or attorney as opposed to basing any decision off of the the "collective wisdom" of this crowd.
I'm late onto this thread, but if the newlyweds deposit the $400K into an account, the parents are working off the books and sign an affidavit stating the large amount was a gift, won't it trigger any red flags with the IRS?
Thats a very good question. I am not a tax attorney so I do not know the ramifications or how they would go about this. My guess is that if OP chooses to apply for a Mortgage loan - they will want to see bank statements going back 6 months or maybe 1-3 years (depending on the bank) showing the $400K cash is already there. If the Parents gift the son $400K and sign an Affidavit attesting to same, I do not see why Underwriting should push for more information by implicating the IRS. The IRS may choose to investigate based on the CRT report of a suspiciously large deposit. How they would go about investigating the parents specifically is anyone's guess. The bank/underwriting dept will want to close the loan because the $400K is already sitting there in the account. My initial hunch (dont quote me) is that the bank isn't going to care.
If the OP decides just to stick the cash into an account - let it sit there for at least 2 or more statement cycles, and brings it to the closing table - why would the title company care? I guess I am not seeing how the IRS would be tipped off here..I dont really know but now I want to do some outside research on this particular scenario to find out.. My guess is the bank isn't really going to care - they want to see OP can swing the taxes/insurance on the loan, and in so doing will ask for at least 3 months of bank statements and pay stubs to ensure a steady income.
Last edited by LegalDiva; 01-31-2013 at 10:12 AM..
Forest_Hills_Daddy They are more educated and would be more productive to their (town, city, state, country) than some of these spoiled kids that we pay $20k a year in taxes to send to school but because they don't look, talk like the Jonny or Billy = are immigrants people automatically they live off public assistance and are being supported by their tax dollars. We Americans are the most entitled, obnoxious bunch of people I have ever met. (I love the you're in America speak English but the first thing an American does when he goes on vacation to a foreign country is to ask do you speak English) We are the only country where a majority of the people do not speak more than 2 languages.
so you're comparing Americans who might be on vacation for a week or two and are almost entirely interacting with people in the service industry (hotel employees, waiters, etc.) to permanent residents of a country? Ok then!
NO! New York Times ran a story a couple of years ago about legal immigrants with college degrees who can't find work in college-level fields. Hence they are reduced to underemployment. Even in Manhattan and Queens I came across taxi drivers and waiters from south asia with engineering degrees. On a visit to Fordham U, I met a security guard from Ghana who graduated from SANDHURST. They are all here legally but cannot work for mainstream companies because their resumes are being ignored by employers. And we wonder why many of them work off the books...
The NY Times has been discredited decades ago for its style of bloviating journalism.
Any DesiBoy or DesiGirl with a decent education in a needed job field will get work. They are in demand in the IT field for example. And lets not compare the security guard from Sandhurst...he's only qualified to join the army...engineers?, tough field at the moment too.
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My guess is the bank isn't really going to care - they want to see OP can swing the taxes/insurance on the loan, and in so doing will ask for at least 3 months of bank statements and pay stubs to ensure a steady income.
