Transferring Money to Separate Checking Account... Red Flag? (pay, rent, dispute)
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I am moving into a new apartment, and the landlord requires that tenants pay via ACH direct debit. I didn't feel comfortable giving the property management company my checking account information, so I opened another checking account to make the rent payments from. My plan is to deposit the rent from my main checking account into the rent pay account each month. Somebody told me that this was a bad idea cause it could trigger an IRS audit for "structuring" since the total amount over a calendar year would equate to more than $10,000. Is this true, or is it a safe thing to do?
Secondarily seems odd you don't feel comfortable setting up ach for your rent
I've heard some horror stories regarding theft via direct debit. I realize the risk is low, but I'd rather avoid it if at all possible. Same reason why I generally don't write checks and opt for money orders/bank checks.
I am moving into a new apartment, and the landlord requires that tenants pay via ACH direct debit. I didn't feel comfortable giving the property management company my checking account information, so I opened another checking account to make the rent payments from. My plan is to deposit the rent from my main checking account into the rent pay account each month. Somebody told me that this was a bad idea cause it could trigger an IRS audit for "structuring" since the total amount over a calendar year would equate to more than $10,000. Is this true, or is it a safe thing to do?
There is a limit that has to be reported when the transaction is done at one time not over the period of 12 months.
If you make one deposit for $10,000.00 is has to be reported, whomever "somebody" is has no clue what they are talking about.
Also, I am not sure what the amount is I was just using $10,000.00 as an example because you used that particular number.
Secondarily seems odd you don't feel comfortable setting up ach for your rent
Why? I don't want anyone in my checking account either so no ACH here and I have opted out of all electronic statements so I once again get paper documents in the mail, write a check and put the stamp on the envelope and put things in the mail.
I am also getting ready to drop my debit card, unfortunately I have to keep one credit card for my business and one checking account for my business but I have a very low withdrawal amount daily and purchase amount daily on that account. Anything over that limit has to be called in and temporarily reset by the bank.
Why? I don't want anyone in my checking account either so no ACH here and I have opted out of all electronic statements so I once again get paper documents in the mail, write a check and put the stamp on the envelope and put things in the mail.
I am also getting ready to drop my debit card, unfortunately I have to keep one credit card for my business and one checking account for my business but I have a very low withdrawal amount daily and purchase amount daily on that account. Anything over that limit has to be called in and temporarily reset by the bank.
You are at more risk for theft via mail than electronic delivery fwiw. And why ach? convenience is much greater than actual theft. I've had thousands of ach transactions and no theft or fraudulent activity which is much close to the norm than not
You are at more risk for theft via mail than electronic delivery fwiw. And why ach? convenience is much greater than actual theft. I've had thousands of ach transactions and no theft or fraudulent activity which is much close to the norm than not
I'm with CSD610.
Why is that riskier? It feels safer to me. A limited number of people handle the mail. There's unlimited (seemingly) on the internet.
and I'd open a separate checking account as the OP did.
It wouldnt be an issue doing it this way, but its not uncommon either for ACH rent payments. I wouldnt do a seperate account, its more hassle and chances are nothing would happen if so you can dispute it with bank also. If it gives you peace of mind then go ahead and do the seperate account. Just make sure the money always gets transfered the day before.
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