How to deal with cash money?

[Badger]

I admit I am not a very trusting person. Although there are good people there are also too many people that don't mind taking advantage of others. Even seemingly harmless TV commercials are loaded with half truths, bad deals, and requests for donations that are suspect at best.
If they have that much money I see no reason for them to not have a bank account in which the money could be deposited for them to write a check. They could even open a bank account just for the purpose of making the down payment. If they can't for some reason I would want to know why. This would suggest that they might also make mortgage payments in cash also.
No way I would want to take a risk for the potential problems that may arise in the future.

Cheers!

 

[Ronstar]

I’ve sold cars for cash and just spent it instead of drawing from accounts for living expenses. I only had about $5k so I kept it in the house. If I had $100k, I’d put it in a bank lock box and make periodic withdrawals from that.

 

[Retired Expat]

Why is it a problem? If you receive cash, file proper tax/bank forms, etc... what's the problem? It's legal tender, no!?

If the funds are from illegal transactions or perhaps stolen, you can lose them. Also you could be complicit in a money laundering scheme. Of course where I used to live, in Argentina it is completely common as people don’t trust the banks and you can’t have a dollar account.

 

[Raygun99]

I would tell the buyer to take it to a bank and change it to a cashiers check. They could be trying to avoid unreported income. This sounds like a way for them to launder the money.

 

[Stormy Kromer]

I was in business for many years in a business that was primarily paid with checks or money orders.

When I had customers pay for large amounts in cash it never felt right, and it usually wasn't.

I'd take cash for a down payment, but I'd be very skeptical of anyone who wanted to make installments with cash. It doesn't pass the gut check.

 

[Koolau]

Run, don't walk!

 

[calmloki]

The $100k cash down guy evaporated, so that worry is off the plate. Guess we'll see what the fates bring next.

 

[SecondAttempt]

I'd call my bank and ask them what would happen if I tried to deposit 100k in small bills. Get a manager on record with a satisfactory response. If the feds come at you, you pull out the closing statement. Oh, I'd have a closing attorney on board. In fact, that's probably the place to start; one must expect that this is not too uncommon if it's something you have encountered.

I'd go beyond that and hire an attorney for advice. If this involves a weed dispensary it could be complicated. I personally have no issues with weed although I am not personally a user. But it remains illegal in every US jurisdiction under federal law so it would be very easy to run afoul of federal money laundering laws.

That said, there are people who just have lots of cash. We went on a trip with a friend a few years ago. She cuts hair for a living which also involves a lot of cash. We bought her tickets just for convenience so they'd all be on the same reservation and she reimbursed us in cash. I was stunned when she opened her home safe in front of us. She had stacks of $100 bills tucked away as well as numerous small gold bars. Obviously I did not count but based on pictures I've seen of what $1,000,000 looks like in a duffle bag, I would not be at all surprised if she had a quarter million in cash in her safe.

This is all to say, be careful because you could run into legal problems, but using cash would not necessarily scare me off. Title companies are especially sensitive to money sources by the way.

 

[Montecfo]

The $100k cash down guy evaporated, so that worry is off the plate. Guess we'll see what the fates bring next.

Well, I am not shocked, lol. Headache averted.

 

[Koolau]

The $100k cash down guy evaporated, so that worry is off the plate. Guess we'll see what the fates bring next.

Sorry for your loss of the sale, but I think it's for the best. The stress of such a deal would be a killer for me. Good luck with the next offer.

 

[Pineapple13]

Just deposit it in < $10k increments. Then no Form 8300 required. Or, deposit it all at once and fill out Form 8300.

Banks track every cash transaction regardless of amount and they will red flag and watch an account that shows a new pattern of regular cash deposits regardless of the amounts. There will be questions with new and regular cash deposits. The best thing to do is take it and deposit it all at once and tell the bank exactly where it came from (says my friend who is a bank examiner).

 

[TPC229]

Just deposit it in < $10k increments. Then no Form 8300 required. Or, deposit it all at once and fill out Form 8300.

. Not so! Banking institutions, including institutions like casinos who transact in cash, are required to report unusual cash deposits and transactions. EX: drug dealers would often send their minions out to banks with trash bags full of cash. They would walk in with amounts of cash under $10k, and purchase money orders under fictitious names. They would spend a whole day going from bank to bank. Usually 4-5 minions in each car. 50 cars with 5 people in each car purchasing $9k in money orders from 10 different banks= a whole bunch of money. This form of money laundering is a federal felony. At the end of the day, banks will detect that they had an unusual amount of cash deposits and report these transaction to the IRS. CTR ( Currency Transaction Reports), are filed if fraud is suspected.or if the institution suspects one is attempting to avoid the CTR, regardless of the dollar amount. The banks are under great scrutiny and face severe fines, increased oversight including personal penalties and criminal sanctions for failing to report.

 

[Car-Guy]

I don't why "honest" folks get bent out of shape about CTR's. I'm sure I have had CTR's filled out/filed on me "at least" monthly for the past few years by my local banks and a number of casinos I frequent. Never had any issues. I "may" have had a few SAR's file on me too. I don't know that for sure. Still no issues.

 

[socaldonnan]

If it were me, I’d set up an appointment with a real estate attorney and pay for some knowledgeable advice which then you can make an informed decision on how to proceed or go forward with this sale.

 

[Natacastan]

One approach is to have an open and honest conversation with your escrow company. Explain the situation, emphasizing your commitment to a legitimate and tax-compliant transaction. They may have specific procedures for handling cash payments or suggest alternatives like cashier's checks, as you mentioned.

 

[prudent_one]

I don't why "honest" folks get bent out of shape about CTR's. I'm sure I have had CTR's filled out/filed on me "at least" monthly for the past few years by my local banks and a number of casinos I frequent. Never had any issues. I "may" have had a few SAR's file on me too. I don't know that for sure. Still no issues.

It's something. I have read more bad Internet advice about how to handle cash transactions than good advice. A lot of people shoot themselves in the foot because they believed the "Keep it under $9700" and nothing can happen" stories. Meanwhile ain't no bank so clueless as to not see someone who rarely did a cash deposit and never did one over $500, suddenly is making multiple cash deposits in the $9700 neighborhood. The computers sound the alert. I have no idea where "everyone" got the idea if a CTR is needed they will break down your door and ransack your house, and your taxes will be audited for the next 10 years.

 

[Car-Guy]

It's something. I have read more bad Internet advice about how to handle cash transactions than good advice. A lot of people shoot themselves in the foot because they believed the "Keep it under $9700" and nothing can happen" stories. Meanwhile ain't no bank so clueless as to not see someone who rarely did a cash deposit and never did one over $500, suddenly is making multiple cash deposits in the $9700 neighborhood. The computers sound the alert. I have no idea where "everyone" got the idea if a CTR is needed they will break down your door and ransack your house, and your taxes will be audited for the next 10 years.

That would be pretty stupid. If they filed a CTR on me because I made a large deposit, the money is "already" in the bank and not at my house... (But I get it) Anyway, I just don't worry about it... Must be 10's of thousands of CTR's filed on folks everyday in this country.

 

[jebmke]

That would be pretty stupid. If they filed a CTR on me because I made a large deposit, the money is "already" in the bank and not at my house... (But I get it) Anyway, I just don't worry about it... Must be 10's of thousands of CTR's filed on folks everyday in this country.

Won't be long before the AI bots will clone voices and defraud you with a voice call.

As an aside, when I was working I was frequently in countries with high kidnap risk. My wife and I have always had a code word that gets injected in any potentially risky conversation - it was mainly there to clarify whether I was speaking freely or under any sort of coercion or surveillance. Sort of an all clear signal. Without it, conversation would be limited to banal chit chat.

 

[Car-Guy]

Won't be long before the AI bots will clone voices and defraud you with a voice call.

As an aside, when I was working I was frequently in countries with high kidnap risk. My wife and I have always had a code word that gets injected in any potentially risky conversation - it was mainly there to clarify whether I was speaking freely or under any sort of coercion or surveillance. Sort of an all clear signal. Without it, conversation would be limited to banal chit chat.

Sounds like a good idea...

 

[Cayman]

Sounds like a money laundering scheme to me, which you don't want to be caught aiding and betting.

Yes money laundering is a real possibility. Loads of home sales in Florida and other states have been exposed for this .... homes purchased in cash with drug/blood money and then dirty criminals have legitimate assets w/ clean title.

Maybe they dragged a few barrels of Fentanyl across the border to sell here and now want help to launder their $. Drug pushers can't do it without home sellers who turn the other way and accommodate the cash. Makes my stomach turn.

"Money laundering has long been a part of real estate in South Florida. Money made from criminal enterprises, including from cartels in Central and South America, gets pushed through real estate purchases in a way that eventually makes the money appear to be legally earned" - USA Today 10/21/2022

 

[LateToFIRE]

I think that’s called structuring and it is illegal.

https://www.money-education.com/res...ng-cash-transactions-under-10-000-is-criminal

You beat me to the punch line - definitely structuring, which could get you in some hot water, especially if turns out the cash was originally connected to an unsavory enterprise - one more box checked under aiding and betting

 

[pb4uski]

Yes money laundering is a real possibility. Loads of home sales in Florida and other states have been exposed for this .... homes purchased in cash with drug/blood money and then dirty criminals have legitimate assets w/ clean title.

Maybe they dragged a few barrels of Fentanyl across the border to sell here and now want help to launder their $. Drug pushers can't do it without home sellers who turn the other way and accommodate the cash. Makes my stomach turn.

"Money laundering has long been a part of real estate in South Florida. Money made from criminal enterprises, including from cartels in Central and South America, gets pushed through real estate purchases in a way that eventually makes the money appear to be legally earned" - USA Today 10/21/2022

I wonder how someone with the screen name Cayman would know that:

Yes money laundering is a real possibility. ...

... The Island nation is also known for its regulatory flexibility- a potent cocktail of strict secrecy laws, scant regulation and tax exemptions. All these factors, combined with its proximity to the United States, makes the Cayman Islands particularly vulnerable to the depredations of money laundering activities. The Basel AML index, published by the Basel Institute of Governance ranks the Cayman Islands as fifth among all countries with high AML risk.

 

[Cayman]

I wonder how someone with the screen name Cayman would know that:

Great catch pb4. In the context of this discussion - ha! Laundering & criminal activity aren't funny but yeah that's funny. Levity is good.

 

[Koolau]

Won't be long before the AI bots will clone voices and defraud you with a voice call.

As an aside, when I was working I was frequently in countries with high kidnap risk. My wife and I have always had a code word that gets injected in any potentially risky conversation - it was mainly there to clarify whether I was speaking freely or under any sort of coercion or surveillance. Sort of an all clear signal. Without it, conversation would be limited to banal chit chat.

Sounds like a great idea. Too bad we have to think in those terms, isn't it?


I'm just flashing to a movie "The Town" with Ben Affleck and Jeremy Renner et., Al. (Spoiler Alert): Affleck's GF in the movie tips him off on the phone with the most innocuous reference to "one of her sunny days" in the very presence of the FBI/police. Only Affleck's character could have possibly put that together as a warning to stay away. Classic!

 

[Winemaker]

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.