Do you need a tax return to buy a house?

I hear people say if one wants a loan to buy a house, they need to have tax returns for a loan. But what if a person has say $500,000 all in cash and want to buy a house. Wouldn't this person need to show a tax return to the seller or real estate broker to show his proof of income? I hear people say cash is... show more I hear people say if one wants a loan to buy a house, they need to have tax returns for a loan. But what if a person has say $500,000 all in cash and want to buy a house. Wouldn't this person need to show a tax return to the seller or real estate broker to show his proof of income? I hear people say cash is king but if this guy don't have a tax return or have very little income shown on his tax return like $20,000 a year, wouldn't this guy get denied?


But to those people who do make a lot of money and saved up $500,000 and have proof of income... lets say they were making like $200,000 a year and saved enough to buy a house without borrowing and it showed $200,000 in their tax returns, can this person just pay the seller in cash? Or is cash not preferred?


What is the usual method a person who buys a house pay by? Is it a check, bank wire? But if he pays it all in cash, wouldn't the seller have to bring all that money to the bank to deposit it?
Update: Okay i see many of you guys say you don't need a tax return to buy a house and only if you need a loan. But how would the seller know if that person who has the money for the house paid his taxes or not?

5 answers 5