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Pretty ridiculous. My son likes to spend money as soon as he gets it. So, he has been giving me a chunk of his pay check each week for the past two years as he wants to buy a new car in cash.
When the time comes, I'll give him his money and he'll go buy his car.
Now it sounds like he'll have to explain "where" he got his money from? Geesh...
No he won't. I paid for my car in cash and it was over 10K. I just got a cashier's check. Many people, especially foreign-born it seems, pay for cars in cash. Nobody bats an eyelash.
Not everybody is laundering drug money. It may help if you go to a dealership in an area where there is some diversity. The place where I got my car has a lot of immigrants from various countries, and they were used to doing cash transactions.
lol, the cash transaction is reported to the IRS. They're not going to interrogate you (well, unless something is obviously amiss). They're trying to prevent tax evasion and money laundering so it has everything to do with it.
It's been in place since 1970. If it hasn't affected you until now, I think it's safe to carry on with your life.
Then why were people in this thread saying that the Feds are going to show up wanting to know how you got the money? I didn't come up with that myself. Have you not heard about the cops confiscating cash from people they pull over, forcing them into long legal battles to get their money back? Others made it seem like this was happening. I thought this transaction reporting had something to do with the Patriot Act, but you say it has been the rule since 1970. Thank you for that info.
I don't care if the transaction is reported and tracked, but having the Feds show up and asking questions is ridiculous. If I want to save up $20,000 cash to buy a car that's my business, not theirs. (Note: I've already been taxed on the money because I paid taxes all along, and the $20,000 includes taxes and fees too.)
This is only the case if that reported transaction got someone's attention. I put $20K down on a $60K purchase and no.. no one showed up at my door. The fact is large transactions are tracked. Usually nothing comes out of it.
You are free to spend $20K as you wished.. Do that a few times in a year.. it will create cause a trigger.
It is so odd to me, I recently bought a car from a dealership for the first time. I made copies of my job offer letter with my annual pay, pay stubs, w-2 forms, signed forms from references, etc just like online guides said I would need.
I didn't need any of that. I financed through the dealership too. My parents attribute it to established credit history. Like they asked me my gross monthly pay before taxes and the name of my employer, but I didn't need to "prove" anything. I negotiated, completed the sale, and drove the car home all within a few hours. Anyone know what's up?
I think they confused a car loan and a mortgage. A car loan requires positive ID, social security number, and good credit. That's all.
I just did this - no one is going to ask anything. I simply wired the full funds to the dealer's receiving account. Perhaps the dealer filed something but perhaps not - the previous IRS link posted states that "A wire transfer does not constitute cash for Form 8300 reporting. Since the remaining cash remitted was below $10,000, the dealer has no 8300 filing requirement."
Then why were people in this thread saying that the Feds are going to show up wanting to know how you got the money? I didn't come up with that myself. Have you not heard about the cops confiscating cash from people they pull over, forcing them into long legal battles to get their money back? Others made it seem like this was happening. I thought this transaction reporting had something to do with the Patriot Act, but you say it has been the rule since 1970. Thank you for that info.
Ummm what????????
What does that have anything to do with an all-cash commercial transaction?
Bank Secrecy Act has been around since 1970: http://www.fincen.gov/statutes_regs/bsa/
We have paid cash for years............even our drilling equipment..........there has never been a problem.
Just a little surprise at times from the dealers.
If you're a business dealing in large-ticket items as a matter of necessity, I'm sure the IRS already has an idea that your business cash flow can support large-ticket purchases. What's more, banks are exempt from reporting requirements for regular business customers. However, if the IRS gets a report of a $20K transaction from someone who has barely reported any income over the last several years... well, that's kind of a different story and the kind of transaction that's more likely to trigger a second look.
Quote:
Originally Posted by mangoarrow
Personal check is not considered cash, therefore no IRS reporting is required.
The dealer isn't required to report it because the bank will when the check posts.
Yes. But a cash transfer of over $10K triggers some federal paperwork.
So deposit it and write a check. Triggers nothing. Dealer holds car till check beard. Check is not considered cash transaction
Last edited by Electrician4you; 06-22-2015 at 05:02 PM..
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It may help if you go to a dealership in an area where there is some diversity. The place where I got my car has a lot of immigrants from various countries, and they were used to doing cash transactions.
