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Old 01-30-2018, 07:47 AM
 
66 posts, read 17,083 times
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Quote:
Originally Posted by NorthofHere View Post
What AlaskaEric said. Any cash transaction over $10,000 gets reported automatically to the government. Any transaction under that amount that someone thinks is suspicious (think bankers) it is reported. If the government wonders how you obtained that money they will knock on your door. Real estate transactions are not invisible. Buy a car in cash and it is over $10,000 the dealer has to report it, if the dealer thinks you are offering $9,999.99 to avoid the reporting he may just report it anyway.
That only applies to actual cash transactions..you know, a suitcase of money.
It does not apply if you show up with a cashier/bank check.

https://www.irs.gov/businesses/small...dealership-qas
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Old 01-30-2018, 08:25 AM
 
Location: Denver CO
18,975 posts, read 10,032,914 times
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There are also Suspicious Activity Reports, which do not have a cash currency requirement.

https://www.ffiec.gov/bsa_aml_infoba...al/OLM_015.htm

But the mere fact of purchasing a home for "cash" (as in not financed with a mortgage, not a suitcase of money) is not suspicious. Apparently about 1/3 of all house sales are cash transactions.

Cash-only Home Sales Declining But Still One-Third of Transactions - Fannie Mae - The Home Story
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Old 01-30-2018, 10:46 AM
 
1,326 posts, read 526,801 times
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Okie Dokie, at one point in getting that cashier's check it is reported. I have a friend who used to work in a bank. The car dealer if you show up with a bank check for $10K doesn't have to report it but the bank where you got that $10K reports it.
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Old 01-30-2018, 10:51 AM
 
10,148 posts, read 13,833,845 times
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Quote:
Originally Posted by NorthofHere View Post
Okie Dokie, at one point in getting that cashier's check it is reported. I have a friend who used to work in a bank. The car dealer if you show up with a bank check for $10K doesn't have to report it but the bank where you got that $10K reports it.
We were once paid for a car with a certified check. It bounced when we thought it was as good as cash.

This cash buyer emphasizes the savings of the agent commission of 6%. Since they could offer 6% lower than the current ask, it makes the 6% non material. This buyer has other reasons for paying cash. What they are is not known. Both have good paying jobs and "cash" on hand for a 20% down payment. And still they avoid a mortgage.
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Old 01-30-2018, 10:53 AM
 
1,326 posts, read 526,801 times
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Quote:
Originally Posted by tams3757 View Post
That only applies to actual cash transactions..you know, a suitcase of money.
It does not apply if you show up with a cashier/bank check.

https://www.irs.gov/businesses/small...dealership-qas
https://blog.fraudfighter.com/bid/80...he-10-000-Rule .

"Under the $10,000 Rule, What Does "Cash" Mean?
Cash is of course U.S. coin or currency. Cash also applies to currency of any other nation. Cash can also be a cashier's check, money order, certified check, traveler's check or bank draft if:

It is for $10,000 or more<changed this because I believe there is an error in the blog> AND it is received by the business in a designated reporting transaction such as the sale of a durable consumer good like a car or boat or for travel and entertainment that has a price over $10,000.

These monetary instruments will also be considered cash if the business has actual knowledge that the payer is trying to avoid the reporting of the transaction. That last is a sort of industry self policing requirement.

A personal check is not considered cash for purposes of Bank Secrecy Act Compliance. A wire transfer is not considered cash under the Rule. So if you buy a $12,000 car and pay $4,000 cash and $8,000 by wire transfer, this would NOT be a reportable transaction because the wire transfer is not cash and the remaining 4k is less than the 10k cash threshold for reporting.

Because cash is considered the currency of any other nation as well as U.S. currency, for Bank Secrecy Act compliance, converting (exchanging cash for cash) Euros, or yen into dollars is reportable if the amount converted is over $10,000 in a single transaction or related transactions."

I have a friend who used to work in banking.
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Old 01-30-2018, 10:57 AM
 
10,148 posts, read 13,833,845 times
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Isn't there a new law that if a person tries to withdraw $10,000 or more it is a red flag for the U.S. Government and they would have to withdraw larger sums over a period of days?
--------------
Articles explain how this is the future. No one will have cash in their pocket, everything is on a card, the government controls your funds.
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Old 01-30-2018, 10:59 AM
 
1,326 posts, read 526,801 times
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Quote:
Originally Posted by howard555 View Post
We were once paid for a car with a certified check. It bounced when we thought it was as good as cash.

This cash buyer emphasizes the savings of the agent commission of 6%. Since they could offer 6% lower than the current ask, it makes the 6% non material. This buyer has other reasons for paying cash. What they are is not known. Both have good paying jobs and "cash" on hand for a 20% down payment. And still they avoid a mortgage.
What reasons do you possibly think they have for paying cash? I think you watch too much tv. Perhaps they are doing something fishy but more than likely they are wealthy and able to pay cash. Cash in the bank today gets you nothing, lowest mortgage interest rate is maybe 4%. It makes perfect sense to pay cash for a house than to pay interest at 4%. If your cash in the bank was earning more than the interest paid for a mortgage or loan then it might make sense to get a mortgage. Having good paying jobs only reinforces that they are doing well financially. I would worry about someone, not retired, who doesn't work or works at McDonald's paying cash for a house unless they were trust fund babies.
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Old 01-30-2018, 11:17 AM
 
1,326 posts, read 526,801 times
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Quote:
Originally Posted by howard555 View Post
Isn't there a new law that if a person tries to withdraw $10,000 or more it is a red flag for the U.S. Government and they would have to withdraw larger sums over a period of days?
--------------
Articles explain how this is the future. No one will have cash in their pocket, everything is on a card, the government controls your funds.
No, over $10K gets reported and probably won't have someone come knocking on your door. Multiple transactions under $10K made in short periods of time will have someone knock on your door and announce they have confiscated your money for structuring or smurfing (avoiding the reporting).
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Old 01-30-2018, 11:22 AM
 
1,326 posts, read 526,801 times
Reputation: 2308
Quote:
Originally Posted by howard555 View Post
We were once paid for a car with a certified check. It bounced when we thought it was as good as cash.

This cash buyer emphasizes the savings of the agent commission of 6%. Since they could offer 6% lower than the current ask, it makes the 6% non material. This buyer has other reasons for paying cash. What they are is not known. Both have good paying jobs and "cash" on hand for a 20% down payment. And still they avoid a mortgage.
A certified check shouldn't bounce unless it is a counterfeit certified check. Unfortunately counterfeit checks are an issue. Leaves you wondering what should you do when you sell a car yourself. Fortunately, most people are honest.
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Old 01-30-2018, 11:27 AM
 
Location: North Idaho
20,999 posts, read 25,737,156 times
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With the financing you have to worry about the appraisal, but you also have to worry about the bank deciding they won't kick loose the money until some sort of expensive repair has been done. Brand new roof type of expensive.

Also, with financing, there is the problem of your buyer not really understanding how it works. My lender just told me about a sale that got quashed because the buyer went out and bought a house full of brand new furniture for their new house with their credit card 2 days before funding. That put their debt to income out of the acceptible level and the bank canceled on them.

I had a sale canceled as I was driving to the escrow company to sign the final papers. Someone at the bank didn't notice the sale was a manufactured home. It was caught on the last second review of documents. The bank would still fund but they required a higher down payment which the buyers couldn't come up with the additional money. This was within the last 24 hours.

It's not over until it is over and the check clears the bank. But if an all cash buyer has proof of funds there are fewer things that can go wrong than there are with a mortgage.
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