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Old 06-30-2011, 12:37 PM
PDD PDD started this thread
 
Location: The Sand Hills of NC
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I recently sold a car for cash and I want to deposit the money into my account. At what point do the banks have to report cash deposits?

It's not a lot of cash less, than 10K but I don't want to have to pay any kind of taxes or for my buyer to pay any taxes.

No I am not a drug dealer if I was I would not be concerned.
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Old 06-30-2011, 12:44 PM
 
Location: North Metro Atlanta
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Over 5K in cash (that you dont have a biz cash reporting waver for) within 1 bank Company gets reported. If you do it once IRS wont do/say anything about it. If you do it alot they will want to know where you are getting all this cash from. If the IRS does say anything, you send them a copy of the 'Bill of sale' for your car that you sold so show them where you got $xK in cash/

Since I;m guessing you are selling the car for less then what you paid for it there will be no 'gain' on the sale.
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Old 06-30-2011, 12:45 PM
 
Location: Sierra Vista, AZ
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Quote:
Originally Posted by PDD View Post
I recently sold a car for cash and I want to deposit the money into my account. At what point do the banks have to report cash deposits?

It's not a lot of cash less, than 10K but I don't want to have to pay any kind of taxes or for my buyer to pay any taxes.

No I am not a drug dealer if I was I would not be concerned.

I think it's about $2,500 I would just start paying cash for things I normally debit and leave my income checks pile up in the bank.
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Old 06-30-2011, 12:56 PM
 
Location: SoCal desert
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From Wiki:

Bank Secrecy Act


The Bank Secrecy Act of 1970 (or BSA, or otherwise known as the Currency and Foreign Transactions Reporting Act) requires financial institutions in the United States to assist U.S. government agencies to detect and prevent money laundering. Specifically, the act requires financial institutions to keep records of cash purchases of negotiable instruments, and file reports of cash purchases of these negotiable instruments of $10,000 or more (daily aggregate amount), and to report suspicious activity that might signify money laundering, tax evasion, or other criminal activities.
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Old 06-30-2011, 05:35 PM
 
Location: Boise, ID
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Also, be aware that some banks charge you a fee if you deposit more than X cash per month. I know Wells Fargo does this, I believe on our business account, we get charged a small fee if we deposit more than $5000 per month. Since we get a lot of cash rent payments, we sometimes do go over that amount. The fee depends on how much over that we go. I think the highest we have seen is around $10. Something to ask your bank about.

Quote:
Over 5K in cash (that you dont have a biz cash reporting waver for) within 1 bank Company gets reported. If you do it once IRS wont do/say anything about it. If you do it alot they will want to know where you are getting all this cash from.
Interesting. As I said, we do sometimes go over $5000 cash in a given month, within 1 account. I've never heard of a business cash reporting waiver, but neither the IRS nor the bank have ever said a word about it to us. Maybe because it is a property management company, and a lot of cash is normal business practice, we have a waiver we just don't know about.
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Old 06-30-2011, 10:32 PM
 
Location: NJ
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Quote:
Originally Posted by PDD View Post
I recently sold a car for cash and I want to deposit the money into my account. At what point do the banks have to report cash deposits?

It's not a lot of cash less, than 10K but I don't want to have to pay any kind of taxes or for my buyer to pay any taxes.

No I am not a drug dealer if I was I would not be concerned.
I'm guessing they are going to have to pay some kind of tax when they go to register the car.
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Old 07-01-2011, 08:18 AM
 
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Reporting and doing something about a cash deposit are very different things. While the $10,000 is an automatic requirement, they also watch for repeated larger cash deposits. A one time deposit for a car sale, especially if you have documentation, is not going to be an issue.
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Old 07-18-2011, 02:19 PM
 
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Any transaction over 10,000 is reported to Govt.
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Old 07-18-2011, 02:38 PM
 
Location: Syracuse IS Central New York.
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If you deposit more than $10,000 it must be reported. If you deposit less, it is not reported, however if you made a number of smaller deposits, there is a log the bank keeps that the government MAY request.

As for taxes, the only taxes that I can think of are the ones that your local motor vehicle dept will require. Can't get out of that if the new owner ever wants to legally register their new vehicle.
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Old 07-18-2011, 05:52 PM
 
907 posts, read 2,125,892 times
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Quote:
Originally Posted by Lacerta View Post
Also, be aware that some banks charge you a fee if you deposit more than X cash per month. I know Wells Fargo does this, I believe on our business account, we get charged a small fee if we deposit more than $5000 per month. Since we get a lot of cash rent payments, we sometimes do go over that amount. The fee depends on how much over that we go. I think the highest we have seen is around $10. Something to ask your bank about.
Sounds like a good reason to find a new bank.
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