Buying an expensive car. Cash, Check? IRS? Please help. Thank you!?
How does this work? Read the detail before answering. This is a fictitious question. Now lets say for example that i have $150k in my savings account and i want to buy an expensive car around $115k with cash. Now in this case I make 50K annually, and I save a percentage of that each year in my savings or checking account, and eventually (even 30 years later), I will have enough money to buy this car. Moreover i do not know anyone neither i am going to get any inheritance or any gift from someone. Can someone explain to me the whole details with the IRS? They really does not even know about my $150k saved up. I do not have any savings account according to IRS. Now if i go out and purchase an expensive car worth around $115k then is it possible for IRS to catch me as a fraud? Why can't I tell them I have saved up this money over time of years and years of hard work? I am just a little bit confused because I heard any payment over $5,000 cash the IRS gets suspicious. This a serious question. Please try your best to answer it accurately and to the best of your knowledge. No irrelevant answers please.
Thank you and have a great rest of your day!
- Anonymous6 years ago
There is no "deal with the IRS" to beware of. There's nothing illegal about saving up money in a bank account. The IRS couldn't care less what car you buy.
What you've misheard is the fact that bank transactions of $10K or more are reported to the Treasury Dept. (not the IRS) as a money laundering detection measure. They are looking for patterns of frequent large transfers of money. It doesn't mean that your fictitious purchase is "illegal" and it has nothing to do with the IRS.
- wg0zLv 76 years ago
so, some day you'll ask your bank for a cashier's check for 355k, made payable to "Laborghini of Lousisville", and they'll hand it to you and deduct the loot form your account. No one will even blink. your pattern of deposits over the years will already be on record.
- Beverly SLv 76 years ago
Any deposit over 10k at one time the IRS is notified. You can deposit smaller amounts through the years without a problem.