I have a friend whos mother passed away, and left him a "Total Control Account". He doesn't have a bank account of his own, and he wants to write me a check for the amount in his account ($11,000+), and have me cash the check and give him the money.
My question is: Will the money be considered income of any kind, and will it be taxed? I don't mine cashing the check, but I don't wan't it to be considered income or taxable in any way.
Oh btw, I live in Maryland.
Thanks
Chas
2007-12-06 08:38:21 · 8 answers · asked by corvair_tw 1 in Business & Finance ➔ Personal Finance
Oh BTW, this is NOT a scam of any kind. This is my best friend. I've cashed small checks for him without any problems. It's the amount that has me worried about taxes etc.
2007-12-06 08:49:24 · update #1
He can't open a bank account because of his ex-wife overdrawing his checking account, and he doesn't want to pay the $1000 in fees to open another account.
2007-12-06 09:09:41 · update #2
This is a life known friend who is having hard times etc etc. I'm not gonna go into details about his life.
Of course the check would clear before I could withdraw the funds.
The bank is not in our state. It says PNC, but it's not associated with the local PNC bank.
2007-12-06 12:38:14 · update #3
Phew! Problem was solved. He found a bank that would let him open an account.
2007-12-08 09:02:04 · update #4
Why cant he open his own account? He's got $$, and he only needs like, $100 to open one. So thats funny right from the start. That being said, no, its not income to you. You could potentially raise an IRS flag with a $10,000 deposit, but just keep accurate records, including evidence that you gave him the $10,000 (a signed and dated receipt from him for the amount should be sufficient). Its unlikely the IRS would notice though, and its unlikely to be an issue at all. But you, its certainly not income to you. Best of luck.
2007-12-06 08:56:05 · answer #1 · answered by bmwdriver11 7 · 0⤊ 0⤋
Okay, Chas --
Since you insist on buying this guys bs....I will completely modify my answer.
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The bank is not going to let you roll in there with a $10,000 third party check and take out a suitcase full of $1's and $20's no questions asked. A DNA sample will be required...Okay, I'm being a smarta**, but come on, you have got to know this is going to be a huge headache for you.
If I were you and I just loved helping this guy, this is what I would do:
(1) talk to the estate lawyer and ask him if he will arrange for cash payment of the account, at say, $1000 a week. The answer should be yes...they may even give him the $11,000 all at once.
(2) If the answer is no, then he CAN go to the bank with the total control account and ask for cash...he's the freakin' owner of the account now. That's why these accounts are structured -- I deal with them all the time. The only reason the bank would not pay it out in cash to him is if he cannot prove who he is (hint: the estate lawyer obviously knows who he is) or someone (the government) order them not to pay out (it is in settlement)
2007-12-06 08:44:00 · answer #2 · answered by Anonymous · 0⤊ 0⤋
If the check is from lets say Bank of America, any Bank of America will cash it for free. If you open a savings or checking account at most banks, they will let you withdraw most of the money after a week. No charge for deposits. Everything else will require a check cashing fee. Pay day loans will cash the check for a fee. Many banks, like in Walmart, will cash tax refund checks. I had friends who opened a student saving account. (this is the cheapest) They would deposit some of the check, and take the rest in cash. Their kid got to keep the $5.00 checking fee. You can make as many deposits as you want into a savings account, but you can only make 3 with drawls a month.
2016-05-21 21:39:47 · answer #3 · answered by sean 3 · 0⤊ 0⤋
anything over 10,000 and the bank reports it. Your friend can open an account with another bank and he wont get charged the fees. For example...if his wife overdrew his balance at Bank of America, he can go to washington mutual without any problems or having to pay the balance at BofA.
Or if he still gives you some B.S. about opening an account somewhere, tell him to go to the bank that the check is drawn on to cash it.
2007-12-06 10:05:26 · answer #4 · answered by Anonymous · 0⤊ 0⤋
SCAM
Why can't he open his own bank account? It takes less then 30 mins.
2007-12-06 08:46:30 · answer #5 · answered by thequiqui 3 · 0⤊ 0⤋
No it will not be considered income for federal income tax purposes.
2007-12-06 08:44:42 · answer #6 · answered by Squat1 5 · 0⤊ 0⤋
Do a little digging and you'll probably find out it's a scam.
2007-12-06 08:44:44 · answer #7 · answered by Anonymous · 0⤊ 0⤋
no!!!
2007-12-10 03:41:58 · answer #8 · answered by Anonymous · 0⤊ 0⤋