selling your 911 and The IRS

[gregk1]

so what do you do when you sell your 911 and keep the IRS from wanting to get i your pocket do they want to count that as income

[gsjohnson]

Why would you claim it as income? I wouldn't worry about it. If you're buying and selling expensive cars all the time, you may want to look at other alternatives.
Enjoy...

[gregk1]

i would not want to claim enything. i just wonder if they saw a large deposit or wire transfer in a audit and say well what is this!!! prove where this came from. transactions over $10k they track don't they. i am in the retirement mode and may be looking to downsize alittle of my stock and don't want the tax man in any part of it

[w21055]

Do multiple deposits for 3K.

[pete3799]

Give me one.
Charitable donation problem solved.

[914agogo]

Originally Posted by w21055

Do multiple deposits for 3K.

it's called structuring and its a Federal offence.

there is a flag system in place to catch this, beware.


Title 31 of the United States Code, section 5324, provides (in part):

No person shall, for the purpose of evading the reporting requirements of section 5313 (a) or 5325 or any regulation prescribed under any such section, the reporting or record keeping requirements imposed by any order issued under section 5326, or the record keeping requirements imposed by any regulation prescribed under section 21 of the Federal Deposit Insurance Act or section 123 of Public Law 91–508— [...] (3) structure or assist in structuring, or attempt to structure or assist in structuring, any transaction with one or more domestic financial institutions.

[gsjohnson]

The IRS does not review what goes in and out of bank accounts as a matter of practice. Yes, banks are required to report any cash deposits of 10K or more, but that's all it is...a notification. The IRS receives over a million notifications a year of this type. The only time they review bank accounts is during disputed audits. The IRS does not review bank accounts during routine audits. Routine audits consist of proving your deductions. Ask me how I know...

[914agogo]

true indeed, there are millions of these and the IRS doesnt pay too much attention until an audit....but still in place and greatly improved is the software that came out of the Bank Secrecy Act of 1970 to catch money laundering thru E audits using avoidance tactics for deposits of $3000 or more.
An acquintance of mine was recruited to work on such software in the 90's.
he seems to imply that there wasnt enough manpower/motivation to go after cases of amounts of less than $500K...

here's from Wiki on BSA:
An entire industry has developed around providing software to analyze transactions in an attempt to identify transactions or patterns of transactions, called structuring, which requires a SAR filing, that qualify for reporting. Financial institutions face penalties for failing to properly file CTR and SAR reports, including heavy fines and regulatory restrictions, even to the point of charter revocation.

These software applications effectively monitor bank customer transactions on a daily basis and, using customer historical information and account profile, provide a "whole picture" to the bank management. Transaction monitoring can include cash deposits and withdrawals, wire transfers and ACH activity. In the bank circles, these applications are known as "BSA software" or "Anti-money laundering software".

[gregk1]

let me guess you work for them?? so there is nothing to worry about??
i talked to the department of revanue years ago she said if you restored a car and paid sales taxes on all the stuff you put into it then it's not income no problem

[914agogo]

here's the thing...many of us if we had logged in the hours, accounted for every bolt, part, run to the store, specialized services ect...
and truly add up our efforts in making these cars better, it
would actually show a loss not any "profit/income" per say....
I mean, who actually makes money with these cars

so if you want to file and declare your car as an investment/business just show 'em the facts
you'll likely get a refund and empathy

if you take the current economic sales data as your base, your investment is a losing proposition.
just dont tell them how much fun you had

got blood?

[gregk1]

that was verry well put