My cousin is leaving to Mexico and asked me to keep his $10,000 until he comes back. I know theres a certain amount that if deposited to any account, the bank reports it to the IRS. How can I prove incase of an audit that I was just holding it for a while and it's not my money; Or what would I have to do?
2007-09-13 17:34:23 · 9 answers · asked by jredsje 2 in Business & Finance ➔ Taxes ➔ United States
The only time the bank reports anything is when it is cash. The report we file is called a currency transaction report (CTR) it is nothing to worry about. It is mainly used to detect and prevent money laundering, and terrorist funding.
2007-09-13 17:38:57 · answer #1 · answered by vegas_vixen24 2 · 1⤊ 0⤋
What you need to do is not take another person's money. It sounds to me that your cousin is conning you, or at the least trying to conceal money from someone else. Is he going to write you a check, and then ask for some of it back right away for example? That is an old old con. Then there is the pigeon drop....it goes on.
Don't be so naive that you think your cousin needs you to "hold" his money for him. That is what banks are for. If he doesn't want to open an account, he can put it in his own safe deposit box.
2007-09-14 00:25:33 · answer #2 · answered by ninasgramma 7 · 0⤊ 0⤋
You do not have alarm bells going off in your head?
Your cousin could open a savings account in his name and earn interest. He could get a cash card tied to that account so if he needed money in Mexico, he could get it at any ATM. By giving it to you, he is totally dependent upon you to get his money back. Are you really that close?
How did your cousin give you this money?
If he gave you cash, give it right back to him. No one in their right mind carries that kind of cash around with them unless there is something "funny" (Illegal) about it. Could it maybe be counterfeit? Imagine your bank's response when you walk in, hand them that amount of cash and it is all fake. Can you say "prison?"
If he gave you a check, then the money is in a bank until that check is cashed. So don't cash the check and leave the money where it is. When he gets back you can tell him you saved his money by leaving it in the bank and all he has to do is write himself a check to get it.
Your whole story reeks of something dishonest. Tell your cousin to take care of his own money and stay away.
2007-09-13 17:47:45 · answer #3 · answered by forgivebutdonotforget911 6 · 2⤊ 0⤋
Open a separate account in his name to be on the safe side. If the bank won't do that, you can take it to a credit union to open it in his name. Or ask someone who works for the IRS. Where I used to live, they did people's taxes for free, so I don't see why they would not be able to assist you with this question.
2007-09-13 17:40:57 · answer #4 · answered by Anonymous · 2⤊ 0⤋
Why would your cousin not put the money in a money market account or IrA. I would not put it in your own personal account. What if he comes back and says you stole from him.? Family is great until it comes to Death and money.
Cover all of your basis unless your willing to deal with the fall out.
2007-09-13 17:43:24 · answer #5 · answered by kicked 1 · 0⤊ 0⤋
Why should there be any problem as long as your cousin paid you by check and his money is not an unaccounted money.
In such cases IRS expects that your cousin has interest income (even you don't actually pay him), and must include in his income. If you don't do this, it may be considered a barter transaction.
2007-09-13 19:32:04 · answer #6 · answered by MukatA 6 · 0⤊ 0⤋
The $10,000 deposit would have to be in cash to be reported. If your cousin acknowledged that it was his money there should be no problem.
2007-09-13 17:38:14 · answer #7 · answered by Anonymous · 2⤊ 0⤋
If it's in your account, it IS your money.
Tell your cousin to open his own account if you are concerned about it.
2007-09-13 21:15:26 · answer #8 · answered by Bostonian In MO 7 · 1⤊ 0⤋
Why is your cousin not opening an account for himself?
2007-09-13 17:37:44 · answer #9 · answered by navide 3 · 3⤊ 1⤋