Transfer of Large Amounts of Funds?

[markjohnson]

I've been shopping around for the right early musclecar lately and have the means to drop some serious cash on the right car. Maybe I'm finally starting to feel old, but I'm beginning to grow a little tired of the long hours at work, coming home and crawling under a project car that's going to consume every weekend for who knows how many years. My time has become too valuble lately.I want something finished and reliable. Anyway, my question concerns the large financial transactions for these old cars. How are these accomplished? Treasurer's or cashier's checks, electronic transfers or the old fashioned suitcase full of money? What about sales tax. Are people really paying sales full sales tax on $200,000 1969 Camaros. A friend recently sold his racecar for $30,000 and when he took the cash to his bank for deposit, the bank told him no way. They wanted to know where the money came from and gave him a form to send to the purchaser of his car inquiring about the money. I know anything over $10,000 withdrawn/deposited gets reported to the Feds, and my funds are acquired by honest means, but I'm just a little paranoid about my bank and the goverment knowing what I'm spending on old cars. I really believe it's private between the seller and purchaser and nobody else's business. Let me throw this out there also: are sellers of these cars paying capital gains taxes on these insane profits of lately? I don't think so. Any advice would be appreciated. Thanks.

[Verne_Frantz]

Mark,
My experience went like this: I bought an old car for a fairly large sum of money and the seller wanted cash. I simply called my bank and "ordered" the cash. I wrote a check for cash from my own account, went to the bank on the agreed day and picked it up. They filled out a simple form and just asked what it was for. I told them I was buying an old car and that was that. I don't think the Feds are tracking whether you are paying your local motor vehicle sales tax. They're looking for exchanges of large amounts of money for illegal purposes.
I had the seller sign 2 separate bills of sale; one for the real amount and one for a very small amount to be used at dmv when I take title.
That was my experience.

I've heard how some people open several different bank accounts and have modest deposits in each, then withdraw all the money when they need a large sum, but I'd think that would only cast suspicion of some wrong-doing with the Feds. They'd be able to trace each account very easily, and having that variety would only look like you're up to something.

Verne

[Chevy454]

Also, someone told me they dropped the *report* limit from $10k to $5k recently...any truth to that?

[ORIGLS6]

[ QUOTE ]
Also, someone told me they dropped the *report* limit from $10k to $5k recently...any truth to that?

[/ QUOTE ]

Define 'recently'. The $10k limit was still in effect in February.

[Mr70]

I read that any deposits made into a Bank account of 5K or more are quitely reported to the Federal Government with in seconds.This just became affective a few days ago.
They are looking for possible terrosit activity they say is why.Don't even think about buying 100 cell phones,(Triggers),all at once either..

[lzdick]

The $5K limit is obviously new and may change my plans.

In the past, I have written checks (up to $9,900) to friends to deposit in their accounts and get me the cash. This has always worked for me with no repercussions. Deposits can be done in reverse, giving a friend the cash and having them write you a check. Make sure you can trust this "friend". Most everything I do is cash. Did one wire transfer due to time constraints and deal went off without a hitch...and I haven't heard from the Feds (yet).
Rich

[budnate]

Good old Folgers can buried in the back yard...that's what pappy said was best.. no stinken bank to hassle you was his motto..may be some wisdom to it

[Zedder]

I think times are changing and large deposits/withdrawls are attracting a lot of attention. Tax evasion is a serious charge (at least it is up here in Canada) and getting caught at the border can get your car confiscated and not returned! I wire transfer funds and pay full tax when I register the car, it's just not worth it for me to take a chance for a few thousand dollars. And yes, I also claimed the profits that I made last year on my tax return - again, it's not worth taking the chance. If you ever get audited, and it's just a matter of time if you make a decent living, how are you going to explain that 6 figure deposit make to your bank account??? Car profits are taxed at capital gains rates minus expenses etc. so it really isn't that bad if you keep good records. Cash used to be the way to go, but we weren't talking about 6 figure cars back then

[Bill Pritchard]

Wire transfers are safe and fast...the way to go, in my opinion.

[47Hammer]

I agree, I have made quite a few large purchases (for me) over the past 10 years or so and the wire transfer costs me $20 and it's done.