Sell vehicle- Deposit cash?

[Chocaholic]

Let’s say you sell a car and the buyer pays with cash. About $15k. Any problem simply depositing it (IRS notification)?

[KFC911]

Unless you're JB....just deposit it .

I think the cutoff is $10K that transactions get flagged...might have changed...it's been that way for years.

[ckelly78z]

The way I understand it, is that a deposited check over a certain amount (possibly $10,000) will have a waiting period of 2-3 days before that money can be withdrawn. I don't think cash has limits.

[PorscheGAL]

The bank does the notification. You don't need to do anything. Your bank may have rules about access as far as the number days until you can use it.

[on2wheels52]

Used to be $10k. My banker buddies got a bit tight lipped toward the end of my career. I think it's more like $4k now gets reported.

[T77911S]

I have thought about the same thing if I sold my 930. could be around 80k.
is the IRS going to tax that as income

[PorscheGAL]

Originally Posted by T77911S

I have thought about the same thing if I sold my 930. could be around 80k.
is the IRS going to tax that as income

Not considered income. Your ownership time excludes it as income.

[KFC911]

To clarify...the 10k "flag" I referred to earlier...I'm not sure it was even to the IRS...put in place decades ago....for flagging potential money laundering, etc.

[KFC911]

Originally Posted by T77911S

I have thought about the same thing if I sold my 930. could be around 80k.
is the IRS going to tax that as income

Think about the number of houses bought & sold via "cash" these days...IRS is a 'nuther matter entirely.... and you're a guppy .

[wdfifteen]

Which Deposits are Reported?
When do banks report deposits to IRS? Banks and credit unions are required to report a cash deposit of $10,000 or larger.
In addition, if two transactions within a 12-month period seem related and their total exceeds $10,000 they must be reported.* If a series of smaller deposits is made within a 24-hour period and their combined total exceeds $10,000, the IRS considers the transactions related to each other and they are reported as well.
Even if deposits are not made within 24 hours, if a bank or credit union has legitimate reason to suspect an individual is making regular deposits in order to avoid being reported, they are required to report their suspicions.
Cash deposits as defined by the IRS includes all currency and coins that are legal tender in the United States, in addition to the legal tender of all other countries as well.* Deposits of personal checks do not fall under the Bank Secrecy Act because these types of checks can always be traced back to the account of the individual who wrote the check.* Only bank drafts, money orders and certain types of checks such as a traveler’s or cashier’s check, are affected by the rules of the Bank Secrecy Act.
*
IRS Form 8300
What kind of information do banks and credit unions pass on to the IRS when they fill out a Form 8300?
The bank or credit union filling out the form will list their own business information and they will provide personal information, such as the name and taxpayer identification number of the depositor.* If deposits were made to a joint account and there were multiple depositors, the banking institution will identify each depositor.* They will also list the amount(s) that triggered the Form 8300, along with the format of the deposit(s) —* whether they were made by bank drafts, money orders, a traveler’s or cashier’s check, or a combination of these formats.
The bank or credit union will then send the form to the IRS for review.* If a bank or credit union fails to file a Form 8300 on time the IRS will impose a penalty on them.* Therefore, financial institutions are motivated to file the forms within the deadline.
*
Summary
Most individuals do not regularly receive money orders, bank drafts, etc. that exceed the $10,000 threshold.* The only individuals who might have cause for concern are those running some type of small business.* If you foresee a time when you might be receiving enough funds to exceed $10,000 in deposits, talk with your bank, credit union or your accountant to determine the best way to adhere to the rules outlined by the Bank Secrecy Act and the Patriot Act.


https://banks.org/how-much-money-can-you-deposit-before-the-bank-reports-it/

[rfuerst911sc]

Put it into a safety deposit box ?

[nota]

Originally Posted by PorscheGAL

Not considered income. Your ownership time excludes it as income.

time flips the funds to a long term CAPITAL GAIN if you made a profit
note only the gain is taxed not the whole amount and at a very REDUCED RATE

so if you got the car for 40k years ago and sell for 80k you owe 40k in capital gains
minus some added costs of ownership
but if you paid 90 a few years ago you lost ten k and no tax

[Black968]

Just split it into 2 or 3 deposits if you are concerned.

[RKDinOKC]

The reason the large deposits are reported is the authorities are looking for large deposits by illegal drug merchants. If few times, it's not noticed. If it happens frequently the account holder is under surveillance.

[cabmandone]

Originally Posted by Black968

Just split it into 2 or 3 deposits if you are concerned.

Nope, that won't work. I know, I have done it.

Mike,
When you deposit the cash they'll probably ask you for your ID but otherwise no real issue unless you're worried about it being reported and you don't want to, then don't deposit it.

[ckelly78z]

Originally Posted by Black968

Just split it into 2 or 3 deposits if you are concerned.

It sounds like the IRS rules that WDfifteen outlined would also report smaller transactions that seem related.

Safety deposit box transactions are only reported by the bank on a sign in/out sheet for being in the vault, not about the contents. The box next to yours could have miliions worth of diamonds, and no one would know.

You could always bury it in the yard, stuff it in the walls, or hide it in your mattress (not recommended).

[cabmandone]

Originally Posted by ckelly78z

It sounds like the IRS rules that WDfifteen outlined would also report smaller transactions that seem related.

Safety deposit box transactions are only reported by the bank on a sign in/out sheet for being in the vault, not about the contents. The box next to yours could have miliions worth of diamonds, and no one would know.

You could always bury it in the yard, stuff it in the walls, or hide it in your mattress (not recommended).

OR! You could tie it up in a sweaty gym sock and bury it in a manure pile. I swear I had a guy do that once. The bank tried to refuse the deposit. I felt so sorry for the lady who counted the money. Brinks refused to take the money so they had to do it in small amounts just to get rid of the stinky money.

[MBAtarga]

Mike,

I'll meet you somewhere and deposit half of it - so you won't hit the $10k threshold. Just doing a buddy a favor is all.

[greglepore]

Originally Posted by PorscheGAL

Not considered income. Your ownership time excludes it as income.

Huh? No offense, but its a capital asset and any gains are capital gains. Yes, if you have records you can offset expenses, but you can't just ignore it.

Splitting deposits to avoid reporting is actually a federal crime. Not that anyone is going to get prosecuted for splitting a 15k but still...

[dad911]

Originally Posted by Chocaholic

Let’s say you sell a car and the buyer pays with cash. About $15k. Any problem simply depositing it (IRS notification)?

Perfect. The gift deduction limit is $15k..... I'll send you wiring instructions.......



If the car is a loss or break even, I'd just deposit it. If it was a gain..... be more creative.....