How to deal with cash money?

[Koolau]

For some reason, this latest bunch of 6 tenants, 4 pay in cash. All have good paying jobs, and have been with me since 2019. but I make sure it is all reported.

Reported AND documented - in some sort of ledger or other (preferably) bound and numbered-page book. No such thing as too much documentation (unless you want to hide something, that is.) The IRS can be picky and documentation is key to satisfying them. Our small business had to submit a copy of our annual meeting minutes once to verify an "event" that had significant financial repercussions to the family business. The IRS was "happy" with the documentation which is a very good thing. YMMV

 

[karen1972]

I would not be taking hard cash. They can go to their bank and convert it to a cashiers check, if they can't or wont then you have to wonder why..and that flag alone says its a bad idea.

Too many people these days getting their accounts flagged with "suspicious" activities which could freeze your account for ridiculous amounts of time. There is zero chance I'd be willing to risk that.

I'm not surprised an escrow company wouldn't want that kind of liability.

 

[Route246]

We have much more than that in our bank so in our case I would simply arrange for the buyer to meet us at our bank (with an appointment with a banker, not just showing up at a teller's window) where our bank would accept the cash and cut a cashier's check to the title company. We would have absolutely nothing to hide as this is a legitimate business transaction. The only concern I would have is counterfeits but the bank can scan each bill for that. With our balance our bank would have no problems taking care of this. I've taken out many 10's of thousands in cash before to pay contractors' invoices (we have receipts). There is nothing structured, illegal or questionable as cash is cash and the $10K anti-money-laundering amount is arbitrary. Vehicles are often bought and sold privately for many 10's of thousands of dollars in cash in bank lobbies. This is nothing unusual for banks to facilitate. They provide a safe space to make large cash exchanges.

I would not be taking hard cash. They can go to their bank and convert it to a cashiers check, if they can't or wont then you have to wonder why..and that flag alone says its a bad idea.

Too many people these days getting their accounts flagged with "suspicious" activities which could freeze your account for ridiculous amounts of time. There is zero chance I'd be willing to risk that.

I'm not surprised an escrow company wouldn't want that kind of liability.

 

[youbet]

We have much more than that in our bank so in our case I would simply arrange for the buyer to meet us at our bank (with an appointment with a banker, not just showing up at a teller's window) where our bank would accept the cash and cut a cashier's check to the title company. We would have absolutely nothing to hide as this is a legitimate business transaction. The only concern I would have is counterfeits but the bank can scan each bill for that. With our balance our bank would have no problems taking care of this. I've taken out many 10's of thousands in cash before to pay contractors' invoices (we have receipts). There is nothing structured, illegal or questionable as cash is cash and the $10K anti-money-laundering amount is arbitrary. Vehicles are often bought and sold privately for many 10's of thousands of dollars in cash in bank lobbies. This is nothing unusual for banks to facilitate. They provide a safe space to make large cash exchanges.

Sounds like a good reason to be an established customer at a local bank.

 

[karen1972]

We have much more than that in our bank so in our case I would simply arrange for the buyer to meet us at our bank (with an appointment with a banker, not just showing up at a teller's window) where our bank would accept the cash and cut a cashier's check to the title company. We would have absolutely nothing to hide as this is a legitimate business transaction. The only concern I would have is counterfeits but the bank can scan each bill for that. With our balance our bank would have no problems taking care of this. I've taken out many 10's of thousands in cash before to pay contractors' invoices (we have receipts). There is nothing structured, illegal or questionable as cash is cash and the $10K anti-money-laundering amount is arbitrary. Vehicles are often bought and sold privately for many 10's of thousands of dollars in cash in bank lobbies. This is nothing unusual for banks to facilitate. They provide a safe space to make large cash exchanges.

Exactly my point though YOU do these types of transactions all the time, you have a history of paying in cash, you have lots of money in the bank, therefore its fine. I personally never have cash, only keep about $5k in any given bank, and therefore have zero history of exchanging cash, wouldn't all of a sudden take $100k in cash. The person with the $100k of cash has the obligation to go get a cashiers check from their bank.. they are doing nothing wrong it shouldn't be a problem. Why would I have to be involved at all?

 

[dmpi]

I had to deposit $70,000 total. I received it about $10,000 per week. At first I deposited about $9,X00 a week. Then I got tired of it and I deposited $12,000. The bank teller looked depressed. She started filling out a form which took her a few minutes and she asked me one question. What is your profession? I said retired. That was it. After that I kept it under $10,000. It's too much a bother if you go over $10,000.

 

[Winemaker]

I deposited a distribution check from my 401k a few years back, and the teller started to ask the usual questions. Mr. Winemaker, $20,000 is a lot of money to deposit at one time, are you making a major purchase? No, I said just paying my health care premiums all at one time to get a 3% discount. She never bothered me again with future deposits.

 

[jazz4cash]

I deposited a distribution check from my 401k a few years back, and the teller started to ask the usual questions. Mr. Winemaker, $20,000 is a lot of money to deposit at one time, are you making a major purchase? No, I said just paying my health care premiums all at one time to get a 3% discount. She never bothered me again with future deposits.

I don’t get this. What are the usual questions when depositing a business check? Is teller just being chatty or does he/she think it’s their job? It’s not cash. Distribution checks identify the source of funds but is it their business to ask? Maybe they were instructed to steer you to certain products based on your response.

 

[Koolau]

I deposited a distribution check from my 401k a few years back, and the teller started to ask the usual questions. Mr. Winemaker, $20,000 is a lot of money to deposit at one time, are you making a major purchase? No, I said just paying my health care premiums all at one time to get a 3% discount. She never bothered me again with future deposits.

Should have told her there was one special bottle of wine you were going to purchase and needed the extra money to complete the purchase. I'm sure you could have counted her fillings upon giving her that information.

I electronically transfer more than $20K from my 401(k) (RMD++) No one ever questions me about such transactions.

 

[aja8888]

I electronically transfer more than $20K from my 401(k) (RMD++) No one ever questions me about such transactions.

Electronic transfers are much different then cash or face to face teller assisted deposits. I've transferred hundreds of thousands with the click of my mouse.

 

[Winemaker]

I don’t get this. What are the usual questions when depositing a business check? Is teller just being chatty or does he/she think it’s their job? It’s not cash. Distribution checks identify the source of funds but is it their business to ask? Maybe they were instructed to steer you to certain products based on your response.

It's all part of the anti terrorism law enacted after 9/11, IIRC, "get to know your customer".

 

[Koolau]

Electronic transfers are much different then cash or face to face teller assisted deposits. I've transferred hundreds of thousands with the click of my mouse.

Heh, heh, I salute your sir. I am not worthy!!


I do wonder. I'm guessing the bank does send some report to the gummint about large electronic transfers, right? "Bad guys" of all stripes must certainly use electronic transfers once they clean their cash (in the Caribbean or elsewhere.)

 

[OldShooter]

It's all part of the anti terrorism law enacted after 9/11, IIRC, "get to know your customer".

Another factor is financial abuse of the elderly. Banks do teller training and try to balance being intrusive with trying to detect transactions that may stem from swindles of various types.