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The landlord actually opened with a cash offer, so I don't really see why you're saying it's not happening. We told him we wanted a check after the negotiation and he told us he could do whatever we wanted (cash or check), but only recently we've decided we wanted cash so that like you said, our benefits and financial aid go uninterrupted. And it's not as easy as just taking the money and putting it into tuition. If I were to do that, why would I take the buyout in the first place? I'd lose my aid and have to cover all of tuition, and then be forced be pay higher rent elsewhere. Doesn't make sense. The only reason I'm even thinking about moving is that we can take the money and buy real estate in a cheaper city (plus it being a ****ty apartment to live in). If a lot of it goes into tuition or paying off taxes, what's the point?
You do realize unless or until statue of limitations have expired it can be months or even years after you are caught running game and still be prosecuted?
So your LL *gives* you 75K in cash and you don't report anything to keep drawing benefits. As others have noted what are you going to do with that cash? Even hookers and drug dealers know if they want to do legitimate things with "found" money they must declare it in whole or part. In case you were wondering, NO you cannot simply show up with 75K and purchase a house. The bank or someone is going to want to know where that cash came from, especially if it is a down payment on a mortgage. Even if you found a house for 50K and wanted to pay all cash the deed/transaction is recorded as a public document.
So your LL *gives* you 75K in cash and low and behold he is audited in a year or so by the IRS for 2015. Going over his books they have questions as to where this "misc" amount of money went. He can lie but why should he to save your behind? If he tells the truth the deduction may stand but the IRS is certainly going to look at *your* tax returns for that amount.
You do realize unless or until statue of limitations have expired it can be months or even years after you are caught running game and still be prosecuted?
So your LL *gives* you 75K in cash and you don't report anything to keep drawing benefits. As others have noted what are you going to do with that cash? Even hookers and drug dealers know if they want to do legitimate things with "found" money they must declare it in whole or part. In case you were wondering, NO you cannot simply show up with 75K and purchase a house. The bank or someone is going to want to know where that cash came from, especially if it is a down payment on a mortgage. Even if you found a house for 50K and wanted to pay all cash the deed/transaction is recorded as a public document.
So your LL *gives* you 75K in cash and low and behold he is audited in a year or so by the IRS for 2015. Going over his books they have questions as to where this "misc" amount of money went. He can lie but why should he to save your behind? If he tells the truth the deduction may stand but the IRS is certainly going to look at *your* tax returns for that amount.
You can't show up with the money to purchase a house, but you can have people write you checks on the house and pay them back with cash, no?
Why would the landlord NOT lie? Wouldn't he get in trouble as well for giving someone that amount of money in cash? He did say cash is better for us because we wouldn't have to pay taxes on it (his exact words), so I'm not quite sure how "legitimate" of a landlord he is. I knew a few people in my building from a few years back and some friends who know the same guy, and they've all received cash from him. Some of em just a few grand, some up to ten - twenty grand, but still.
You can't show up with the money to purchase a house, but you can have people write you checks on the house and pay them back with cash, no?
Why would the landlord NOT lie? Wouldn't he get in trouble as well for giving someone that amount of money in cash? He did say cash is better for us because we wouldn't have to pay taxes on it (his exact words), so I'm not quite sure how "legitimate" of a landlord he is. I knew a few people in my building from a few years back and some friends who know the same guy, and they've all received cash from him. Some of em just a few grand, some up to ten - twenty grand, but still.
Didn't say you couldn't purchase a house in cash, just that you must account for where it came from. No question asked mortgages *might* still be out there but otherwise when you purchase a home the bank or whoever is going to want to see where funds are coming from.
Clearly you have no clue about money laundering and tax statues, and why anyone selling property would want to steer clear. If you purchase property or an asset and later the IRS determines you owed taxes on unreported income guess what they can (and likely) will do? Place a lien on that property or asset to get that money. Until you pay the back taxes, fines and whatever the lien will remain in place. A bank holding a mortgage on property is not too keen about having it seized by the IRS or even law enforcement, so they are going to make sure to the extent possible things are on the up and up.
Why do you think all those "Sopranos" characters have legit businesses/jobs? That is the front for possible money laundering. Persons with no visible means of support suddenly purchasing property with money that came out of nowhere tends to draw suspicion.
Nor does it actually even matter whether the OP is a student.
It doesn't matter whether you agree or not.
The OP himself or herself has said this.
"We told him we wanted a check after the negotiation and he told us he could do whatever we wanted (cash or check), but only recently we've decided we wanted cash so that like you said, our benefits and financial aid go uninterrupted. And it's not as easy as just taking the money and putting it into tuition."
So the OP admits a concern of their was that their BENEFITS go uninterrupted.
You got played if you could not see this from the very first post. But that's where being catty gets you.
OP, you have gotten sage advice from many who commented but its obvious that your mind is already made up....so do whatever it is that you want to do, and stop wasting our time.
__________________
"The man who sleeps on the floor, can never fall out of bed." -Martin Lawrence
The landlord actually opened with a cash offer, so I don't really see why you're saying it's not happening. We told him we wanted a check after the negotiation and he told us he could do whatever we wanted (cash or check), but only recently we've decided we wanted cash so that like you said, our benefits and financial aid go uninterrupted. And it's not as easy as just taking the money and putting it into tuition. If I were to do that, why would I take the buyout in the first place? I'd lose my aid and have to cover all of tuition, and then be forced be pay higher rent elsewhere. Doesn't make sense. The only reason I'm even thinking about moving is that we can take the money and buy real estate in a cheaper city (plus it being a ****ty apartment to live in). If a lot of it goes into tuition or paying off taxes, what's the point?
I really doubt a landlord would do this. 75k in cash?
i don't believe for one second the landlord said i will give you cash. the only thing missing from this story the op is telling us is he didn't start it with once upon a time.
to me it was obvious the op was looking to evade taxes and now he is dancing around the fact.
i don't believe for one second the landlord said i will give you cash. the only thing missing from this story the op is telling us is he didn't start it with once upon a time.
to me it was obvious the op was looking to evade taxes and now he is dancing around the fact.
Looking to evade taxes AND commit welfare fraud by not reporting his income.
it sure sounds like that was the gist of the op's question. in 12 years of buying out stabilized leases never ever has a tenant questioned the fact we would only pay by check nor receive a 1099-misc from us.
if anything they question how to declare it and of course with no actual tax law in place to determine if it can be taken as a long term capital gain we just tell them to consult their own tax attorney and follow their advice.
nothing we can even guide them on nor should we.
you know when the issues of paying in cash or gifting come up these folks have other motives or it wouldn't come up..
Last edited by mathjak107; 03-19-2015 at 03:27 AM..
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