Why would you write a 1099 for buying a car - it's not labor or service? Why would you need the SS number for buying a car?
It was being titled/notarized... all legal/above board.
It was being titled/notarized... all legal/above board.
.... A business would not likely pay $3000 over blue book,
... Most businesses would want to write off a $6,500 transaction and have proof that they paid. They would want to write a check, or have an SSN they could give a 1099 to for the amount paid. Or a solid receipt.
... when they could go to a dealer and pay $3000 less, but they would be required to have more documentation.
Some assume the worst, some the best. The truth tends to be somewhere in the middle, but people seldom change their minds or preconceptions.
Good story from OP, but I have to agree with an earlier poster, this doesn't look like a 'stealth wealth' story, as the buyer didn't use a 'poor disguise' or the crying baby to get a lower price. Sounds like he spends time working with his crews would be my assumption. And his time and opportunity cost is worth more than a few grand in this transaction. Maybe not even a few grand, as there were other calls at that price - it could be gone soon.
-ERD50
It is a great story, but I doubt that it is typical for a company with $10M in revenues, and a CEO? making over $500K per year, would have to borrow $500 from a brother/cousin in order to buy a business van for $6,500 in cash, without even a test drive.
.....
And yeah no way major contractors are gonna sub out to non-legit businesses without license/insurance.
No, you may, but I don't. Just to be clear, based on my experience, the situation as described by Fuego in the OP is possible, Fuego has established credibility so it is highly likely. There is no reason to assume that there is tax evasion or any unlawful activity. That is a presumption and entirely external to the thread.
People pay me in cash sometimes for my work. I actually report it to the IRS but I don't deposit it in the bank. Keep it in the safe and break it out for purchases like this. My plunking down a grand or two cash doesn't mean I operate as you describe. Last I checked cash is legal tender in the USA!? I agree many businesses do run on cash and don't pay taxes but I think you are really jumping to conclusions here in this fact pattern described. Obviously we will never know.
Can we start a poll here who agrees with Senator and who agrees with MichaelB? I vote for MichaelB.
I would be willing to be not many taxes are paid out of all of the 30 crews. He paid cash. I would also believe that 30 crews may be a exaggeration, or all 30 crews are somewhat independent and only loosely in the same company.
It is a huge red flag for a business to be in paying cash. I would doubt that he has any legitimate business. Transactions for many people that evade taxes is done in cash. He and/or his family may also be on public assistance and do not report the cash.
He did not have much money, maybe it was a negotiation tactic? That is the same way it is in Mexico. You almost need exact change even in a restaurant.
Make sure the transfers the registration to his name. You may find that it never gets transferred. In MN, not only is the buyer supposed to register the vehicle, the seller is required to report the transfer.
Maybe it is because I work for a mega-corp bank, and have a lot of interactions with the anti-money laundering area, the red flags pop up all over on this one.
Or maybe because I used to deal with many people in my low-income and section 8 landlord days that had many sources of 'tax free' income, that I jump to conclusions.
I applaud people that can do it and take home more. That is the natural way of business. Major US firms do it too, except they call it an inversion.
Folks - the point of this post was that a guy who was buying the truck was more successful than he first appeared. Stealth wealth.
How this morphed to somehow this guy is sketchy shows how quick we are to judge when someone's image doesn't fit our preconceived stereotype.
(1) FUEGO is right, this guy's an example of stealth wealth. I'm happy for the guy that he is making lots of money and even more, that he is employing lots of people. Jobs are pretty valuable today and I'm happy that so many people are working for this guy.
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(3) I don't see what all of you are arguing about. It must be the hot weather is getting to some of us.
Folks - the point of this post was that a guy who was buying the truck was more successful than he first appeared. Stealth wealth.
How this morphed to somehow this guy is sketchy shows how quick we are to judge when someone's image doesn't fit our preconceived stereotype.
My god but you people are exhausting.
My god but you people are exhausting.