I'm graduating college soon and as a graduation gift my parents are giving me $10,000, but all in cash. can i deposit it all at once in my bank account without the teller asking questions or should i deposit small increments at a time over the course of a few months.
2007-02-14 07:47:36 · 12 answers · asked by raina 2 in Business & Finance ➔ Personal Finance
It's not so much the tellers u hv to worry about but the government agencies. I believe it's $10,000 and above that will get u noticed. So u decide what to do.
2007-02-14 07:58:53 · answer #1 · answered by •♦๑•TxRose•♦๑• 7 · 2⤊ 1⤋
I would deposit at all at once. There is a suspicious activity report that bankers are supposed to submit when 10,000.01 is deposited. If they ask you about it, you say it's graduation money. Therefor, there would be no problem. Otherwise, if you were to deposit little amounts at different times, that's going to look more suspicious, especially if you don't do it on a regular basis. Get what I'm sayin??? Personally, I would take the money into the bank and speak w/ a financial advisor. Most banks don't charge you to speak w/ them and HONESTLY they will NOT try to make money off of you! They will tell you the best ways to invest that money so you can make more money. Drawing interest and etc. Good luck and have fun w/ the dough!
2007-02-14 08:04:37 · answer #2 · answered by ParisLynn16 3 · 1⤊ 0⤋
I work at a bank. If you deposit--or withdraw--$10,000 or more in a single day, they will probably fill out a suspicious activity report. It doesn't matter if the money is in cash or not. But the report is really no big deal; it's just for documentation--and they'll compare your name to the terror suspect list and make sure you're not on it. In fact, at smaller community banks, they don't even have to fill it out I don't think because they're not as regulated. People do these transactions all the time though; don't worry about it.
2007-02-14 08:06:20 · answer #3 · answered by lizzgeorge 4 · 1⤊ 0⤋
You are referring to the filing of an IRS form 8300. It is required for any cash or cash equivalent transaction of $10,000 or more. First of all, if you were paid by personal check, this doesn't qualify. Second, if you were actually paid in cash, it wouldn't matter how many separate deposits were made; it would still be technically required to be reported. Of course, the bank probably isn't going to know any different.
The whole purpose of the reporting requirement is to prevent money laundering and tax evasion. A gift of $10,000 is below the annual gift tax exclusion. So what if you have to fill out a form?
2007-02-14 08:10:33 · answer #4 · answered by Rob D 5 · 0⤊ 1⤋
You can deposit it all at once. Obviously, you need to have an account at the bank. But there is no maximum deposit. Be careful about walking around with that much cash on hand.
2007-02-14 07:55:38 · answer #5 · answered by fretzdawg 2 · 0⤊ 1⤋
Assuming that you are in the states then any deposit for 10,000 will trigger questions from the bank. Deposit $9,999.00.
I don't know if any applicable state laws may apply but I've never heard of any.
2007-02-14 07:58:06 · answer #6 · answered by Morgan W 3 · 0⤊ 0⤋
The answers people are giving you above are not exactly correct. Each time you make a cash deposit of USD$5,000.00 or more, a US bank is required to submit that deposit information to the IRS directly.
The real question is how badly are you really trying to hide that money from the IRS? Are you really trying to avoid questions at the bank or from the IRS?
"As to the 2007 annual exclusion for gifts, the first $12,000 to any person (other than gifts of future interests in property) isn't included in the total amount of taxable gifts under Section 2503 made during the year."
In 2006, this limit was 10k under the Federal Gift Exclusion program.
2007-02-14 08:45:27 · answer #7 · answered by Ethan 3 · 1⤊ 2⤋
Keep your deposit under $10,000.
However, it might be a better idea to have your parents transfer the money into your account, rather than your carrying around that much cash.
2007-02-14 07:55:05 · answer #8 · answered by Anonymous · 1⤊ 1⤋
Deposit the entire amount all at once.... anything $10,000 or more needs to be reported...., but you will raise more of a red flag if you do it in increments. It will look as though you are trying to hide something. If in fact you get a call regarding the $10,000.. just tell them the truth......., your parents gave it to you as a graduation gift.
2007-02-14 11:03:31 · answer #9 · answered by Anonymous · 0⤊ 0⤋
Ask your parents for a check. Why would you want to walk around with that much cash?
2007-02-14 08:52:53 · answer #10 · answered by Anonymous · 0⤊ 0⤋
deposit $9,999.99. You have to fill out a form if the total is 10 grand
2007-02-14 07:56:58 · answer #11 · answered by wellaem 6 · 0⤊ 1⤋