My friend is going to loan me money. I will give it back to him in 3 months with interest. Will it be tracked my the irs if it is over a certain amount?
2007-08-17 04:12:45 · 8 answers · asked by B 5 in Business & Finance ➔ Taxes ➔ United States
No, the transaction won't be monitored. Bank employees are required by law to report any transaction over 9,999.00 or if they believe that a transaction is 'fishy'. If you are familiar with the bank employees or and explain the simple reason behind the transaction they will still have to fill out the form, and there is a slight chance you might be asked to explain the funds by the irs. It's not very uncommon, and I wouldn't worry about it. It is not allowed for the bank employees to 'coach' you into making the loan less then an amount of 10,000.00 either.
If it's a legit reason, I wouldn't worry about it.
2007-08-17 04:20:02 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Cash Transactions Reported To Irs
2016-11-01 06:32:43 · answer #2 · answered by ? 4 · 0⤊ 0⤋
All single transactions of $10k or more as well as aggregate transactions between the same parties over a short period of time (about 10 days or so, they don't say) are reported to the Treasury Department. The IRS was tasked by Treasury to handle the reporting.
2007-08-17 04:37:24 · answer #3 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Yes. Every bank has to complete a form for the government on any transaction over $10K
2007-08-17 04:16:48 · answer #4 · answered by Rechelvis 3 · 0⤊ 0⤋
Only cash transfers over 10,000 are reported to the IRS per link below. The IRS is mainly concerned whether the principal is really income. They will not worry about your little interest amount being income to your friend.
http://www.yale.edu/tax/docs/rules_def_8300.pdf
2007-08-17 04:22:30 · answer #5 · answered by spicertax 5 · 0⤊ 0⤋
The bank can track any transaction that they think is fishy. In the case of reporting, they are required to report any transaction in excess of $9,999.99 that is in cash and so is any business for example a car dealership.
2007-08-17 05:33:52 · answer #6 · answered by Anonymous · 0⤊ 0⤋
the form that is fill out for transactions over10k is to track terrorism or money laundering. the taxes i dont think will affect because its a loan. a personal loan.
2007-08-17 04:20:28 · answer #7 · answered by luna 5 · 0⤊ 0⤋
It will be reported. It's very unlikely that you will ever hear anything about it, unless you do this often, then you might.
2007-08-17 09:47:50 · answer #8 · answered by Judy 7 · 0⤊ 0⤋