Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
"If people commute in a carpool, is it expected that the value of the transportation in a neighbor's car is taxable income?"
Give it time, give it time...
I agree that the transfer of funds was ill-advised at best, for any number of reasons. But then I refuse to hold individuals to any higher legal standards than the banks and Wall Street thieves. Apply to Congress for a bail-out. Better yet, run for office. That money would then no longer be fraudulent (any more than any politician is fraudulent) and it would merely be a "campaign contribution." In a couple of years, your friend can run for office and you can contribute to him. See? All above board and legal according to the wacked out, money drug encrusted system we now have.
acupcake, surely you must've suspected something amiss with your financial arrangement. Hiding money for someone?? How could you assume that helping a friend defraud a financial institution would be okay??
"Fraudulent transfer" carries no sanction except the obligation to return the funds, unless the source of funds is illegitimate and the recipient knows about it.
Yes, the recipient would have to pay taxes on any income generated while holding the funds, however interest rates are virtually zero, unless he invests them in some other vehicle besides a deposit or money market account.
Quote:
I think people are becoming so afraid of our government that they are afraid to have money in a bank. Says a lot doesn't it?
Indeed, perhaps this is the underlying point to the thread.
I think people are becoming so afraid of our government that they are afraid to have money in a bank. Says a lot doesn't it?
That isn't the situation here AT ALL. OP's friend has to short-sell his house because he "allegedly" doesn't have enough money to bring to the closing table (he signed a legally binding agreement to take out a mortgage & repay that mortgage)....but HE DOES REALLY HAVE THAT MONEY (it's "hiding" in OP's bank account). OP's friend thought he was above the law and for whatever reason didn't need to pay off his debts -that no one forced him to take on....nor did anyone promise him his home value would only go UP.
OP's friend should be afraid of the government. He is blatantly committing mortgage fraud and stiffing the bank with somewhere up to $90k that he is able, yet unwilling, to pay back.
"Fraudulent transfer" carries no sanction except the obligation to return the funds, unless the source of funds is illegitimate and the recipient knows about it.
Yes, the recipient would have to pay taxes on any income generated while holding the funds, however interest rates are virtually zero, unless he invests them in some other vehicle besides a deposit or money market account.
How can you possibly say what's going on here ISN'T fradualent????
1. OP's friend clearly has the funds to pay off the balance of his mortgage, yet is sticking somewhere up to $90k to the bank simply because he "doesn't feel like" paying back his debts. Debts that NO ONE forced him to take on.
2. OP is helping the friend evade paying his debts (mortgage) by agreeing to "hide" $90k until the short sale goes through.
That isn't the situation here AT ALL. OP's friend has to short-sell his house because he "allegedly" doesn't have enough money to bring to the closing table (he signed a legally binding agreement to take out a mortgage & repay that mortgage)....but HE DOES REALLY HAVE THAT MONEY (it's "hiding" in OP's bank account). OP's friend thought he was above the law and for whatever reason didn't need to pay off his debts -that no one forced him to take on....nor did anyone promise him his home value would only go UP.
OP's friend should be afraid of the government. He is blatantly committing mortgage fraud and stiffing the bank with somewhere up to $90k that he is able, yet unwilling, to pay back.
I agree that the OP's friend is doing something wrong. I also think it could likely blow up in his face. The OP however, I wouldn't do what he did, but I do not see how he could get into trouble for anything.. He is allowed to except large sums of money from people and deposit them into his bank account. If I do deposit money I don't think I should have to explain it to the government. It should not be a guilty till proven innocent situation.
What I find scary is that people feel the government watching them so closely. That having large sums of money is a "redflag" to the government. And I believe it is true that the government does not want people to have money.
I agree that the OP's friend is doing something wrong. I also think it could likely blow up in his face. The OP however, I wouldn't do what he did, but I do not see how he could get into trouble for anything.. He is allowed to except large sums of money from people and deposit them into his bank account. If I do deposit money I don't think I should have to explain it to the government. It should not be a guilty till proven innocent situation.
What I find scary is that people feel the government watching them so closely. That having large sums of money is a "redflag" to the government. And I believe it is true that the government does not want people to have money.
Yes, I agree that we all have the right to deposit money into our bank accounts- however, 100% of the money we deposit is either a gift or income. Both have tax implications if the sum of money is over a certain amount ($90k is definitely over that amount).
The "red flag" here is when OP's friend has to submit income statements and bank statements and brokerage statements to prove he qualifies for a short sale, there is a $90k withdrawl/ cleared check in the paper trail....which will lead the bank (and then the Feds) to both OP and OP's friend.
And yes, being that we have US tax laws, banks are required to report all "irregular" deposits (say a check for $20k into an account whose owner only makes/deposits $50k per year in paychecks) to fight against money laundering, fraud, and other illlegal behavior. Remember, all the Feds/bank will see is $90k moving- they have no idea if it's being moved around to support drug trade, terrorism, maffia activity, or other criminal businesses. Yes, OP's friend's criminal activity is less harmful than heroin or terrorism, but it's still a red flag pointing towards illegal activity.
next time you go to the bank can i give you this note and this bag to bring them?
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
