how can I prove them that I saved that money?

Question

If I deposit $50000 into my bank account will they charge me tax?
I have kept my money in the deposit box for 5 years.I saved about 50.000 and now I would like to invest it in mutual funds.Are they going to question me in the bank where I got this money from?Will they charge me tax?Will they investigate about it? I pay my taxes every year. How can I prove them that I saved that money.

Answer 1

Let me get this straight. You have $50,000 in cash sitting in a safety deposit box? You now want to invest this $50,000 in mutual funds?

If you show up in a broker's office with $50,000 in cash it will most certainly look suspicious. Assuming you are in the US, the broker is supposed to ask you to fill out a Currency Transaction Form (CTR). This form is then filed with the US Department of the Treasury. I have heard conflicting information on whether anyone in Washington ever reads these reports or not. With the war on terror, there is increased scrutiny of any monetary transfers which might be funding illegal activities.

Why have you been saving money in a safety deposit box? Even a bank savings account would pay you a little interest.

Answer 2

You will indeed have some explaining to do. Anyone who transfers that much into a bank, will have to face the questions. You had better think up some good answers. The bank perhaps will not question you but the transaction will be reported to the government and very likely there will be questions asked.

What did you do when you took your paycheck to the bank. Ask for $1000 in $100 bills then walk over to your safety deposit box and stuff it in?

Answer 3

Im not sure and it's a good question that many of us wanna know.
Please talk to a bank couselor.

And don't be too worried about this.. You saved the money so it's not like it's gone and you can't account for it.