How would it be discovered? Would my bank report a large deposit to the IRS?
2006-12-20 05:15:55 · 7 answers · asked by Theresa W 1 in Business & Finance ➔ Personal Finance
Yes, banks report all transactions > $10,000. You will be forced to pay taxes on it.
2006-12-20 05:19:06 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Yes, the bank is required to report large cash transactions. A check might not be reported.
Yes, you have just received $100,000 in income. Generally, you do not need to file a gift tax return unless you give someone, other than your spouse, money or property worth more than the annual exclusion ($11,000 in 2002, 2003, 2004 and 2005; $12,000 beginning in 2006) for that year. Although a return may be required, no actual gift tax will become payable until the cumulative lifetime taxable gifts exceed the applicable exclusion amount. The donor is primarily responsible for the payment of the Gift Tax.
2006-12-20 13:19:12 · answer #2 · answered by Aggie80 5 · 2⤊ 0⤋
Yes, you'd have to pay the taxes on it. The bank has to report anything over a $10,000 cash deposit. If it's a check, I'm not sure if/how they report it. If it is an inheritance, you only have to pay taxes on anything over $100,000.
2006-12-20 13:20:10 · answer #3 · answered by capnemo 5 · 0⤊ 0⤋
yeah. and, yes, the bank has to report transactions over $10,000.00. but, if you deposit lesser amounts, they wouldn't report it. it has to be $10,000.00 going into an account or coming out in the same day and it has to be cash. that doesn't apply to checks. technically, the government might never find out if you accepted cash from someone. what do you think drug dealers do? pay taxes? ha haha ha. anyway...what about the person giving it to you, though? no chance they might declare giving it to you?
2006-12-20 13:26:10 · answer #4 · answered by practicalwizard 6 · 0⤊ 0⤋
Yeah you would! The IRS would find out because they would want to know where the money came from. Unless you hide it under the mattress. Then if they do find out you go to jail for tax evasion. So it's better to just notify them and pay the taxes
2006-12-20 13:23:37 · answer #5 · answered by GD-Fan 6 · 0⤊ 0⤋
The new laws state that someone can give a person up to $12,000 per year and that is tax free....
Anything over that is a Gift tax and you have to pay Capitol Gains on it which is about 30%...ouch I know......
My family just went through it..
good luck and god bless
2006-12-20 14:09:07 · answer #6 · answered by James 3 · 0⤊ 0⤋
You would be better off if the giver gave you 10,000 a year.
2006-12-20 13:25:45 · answer #7 · answered by Anonymous · 0⤊ 0⤋