It is innocent money that my mother had stashed in the house. I simply want to put it in the bank for her but afraid of the government thinking this is untaxed money when it isn't. Any advise?
2007-09-11 01:25:13 · 10 answers · asked by Joe S 1 in Business & Finance ➔ Personal Finance
DO NOT put it in a safe deposit box! When a box owner dies, in some states the box is sealed until it can be inspected by a government agency. If they find cash, they will assume it's untaxed income. The safe deposit box agreement given by the bank probably specifically says you may not store cash. Even if your state does not require boxes to be inventoried upon the owner's death, you have to consider that the bank does not insure the contents of the boxes, and if the bank is destroyed or the boxes are robbed, your money is lost. This is of course very rare but it has to be considered.
I don't think you would attract any attention by depositing $1,000 or $2,000 into a savings account a couple times a month. Remember that any cash transaction over $10,000 has to be reported to the government.
Another alternative is to buy gold coins like U.S. American Gold Eagles. These are routinely bought with cash (but will still be reported if you buy over $10,000 at one time with cash). But you can buy less than $10,000 at one time and there is no reporting requirement. Just don't buy $5,000 in the morning and come back an hour later and buy $5,000 more - that won't work, it will still be reported.
2007-09-11 02:20:17 · answer #1 · answered by likepepsi 7 · 0⤊ 0⤋
Don't deposit it all at once. You don't say how much it is, so you might think a large amount of cash is $50, can't tell from this. Usually you run into issues if the amount of any one deposit is $5,000 or more. So make smaller deposits over a period of time, maybe in two different accounts, and you'll be fine. Having said that, a bank is the worst place to put your money.
2007-09-11 01:31:06 · answer #2 · answered by Anonymous · 0⤊ 0⤋
All those who suggest depositing the money into the bank little by little are WRONG!
If caught, this is called "structuring" and is a commonly used strategy by money launderers.
If you have a large sum of "innocent" clean money that needs to be deposited, do so all at once.
What the IRS looks for are NUMEROUS large cash deposits. One is less likely to be questioned than numerous deposits which end up looking like structuring.
2016-04-12 08:53:58 · answer #3 · answered by AmericanCynic 1 · 0⤊ 0⤋
I would deposit it into a bank for the time being until you decide where it should go long-term. Be careful not to deposit all of it at once or the IRS will be informed of the transaction. I'd keep every deposit under $5000 and I'd space it by a week between each one.
2007-09-11 02:14:42 · answer #4 · answered by Jay P 7 · 0⤊ 0⤋
I'll recommend to put little by little so it seems like is just money that you getting for a service you are providing that wont look suspicious.
2007-09-11 01:31:57 · answer #5 · answered by crdndn 2 · 0⤊ 0⤋
I do not get money. like me in china. if i get big money, i will do invest. even buy house for rent, but shops to rent in yiwu here is very good.
I envy you that get money. just do not worry about how to deal with the money. you can spend it or do invest.
2007-09-11 01:38:48 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Get a safe deposit box at the bank and put it in there. You have the security of the bank, but you are only one who knows what is in there. Also, you need to consider if your mom is on Medicare or SSI as they will consider it an asset and deduct from her benefits.
2007-09-11 01:34:42 · answer #7 · answered by jeri_74017 1 · 0⤊ 2⤋
Donate it to me!!! I'll look after it for you!!
2007-09-11 01:34:55 · answer #8 · answered by jk 2 · 1⤊ 1⤋
Investments if not do what you feel comfortable.
2007-09-11 01:31:09 · answer #9 · answered by htpanther 3 · 0⤊ 0⤋
I would ask your banker for advice.
2007-09-11 02:25:33 · answer #10 · answered by Rodger 4 · 0⤊ 0⤋