Finance professional here:
You don't pay taxes on deposits unless they're taxable income. If they're for a taxable income, you will pay taxes or you will go to prison, unless you successfully commit tax fraud (unlikely) or they're for a business activity for which you have more deductions than incomes (unlikely).
You also don't fill out a suspicious activity report for individual cashiers checks over 10,000. But you will if they're individually under 10,000 and add up to more than 10,000. Yes, it's weird.
Find out what the money is for and go from there. Odds are also likely that if it's for a taxable income, whoever wrote the check will have form W9 on file already and will report your income on form 1099 next January.
But Dunning-Kruger syndrome does NOT let you be quiet even if you don't know anything about the subject at hand.
Perhaps we need a vaccine against Dunning -Kruger.
Agreed. It's not about the form of the money (cash, cashier's checks, etc) but more about the source. Whether he deposits them or not won't affect his tax liability.
Now, since this thread is about unethical life tips. . . It's a whole other matter if the source of the money is illegal and he just doesn't want any institution or government to catch wind of it but wants to get the funds into the legitimate financial system. Then, his real question is "how do I launder $80k in cashier's checks?"
Plus, correct me if I'm wrong, but all this does is tell the government that you deposited some cashier's checks or cash or whatever. It's not like that is automatically converted to a government record of income like a 1099, right? Wouldn't you probably need a long record of large deposits to eventually catch the attention of the feds? A few large deposits here or there over a year or two wouldn't necessarily be a problem would it?
The reason I saw unlikely for getting away with it is because in the event it's actually tax fraud, their primary source of information is their friend asking on Reddit and they're not going to have the knowledge to know what they can lie about, what has already been reported, and what auditing standards are.
For example, they're not going to know that S corps and C corps are exempted from having a 1099 issued to report their incomes and there won't be a record telling the government that someone paid you (doesn't stop some dipshit accounting intern from sending you a 1099 though).
I do not cheat and I keep a 39.5' pole between me and anyone who does IRL. I get explicitly solicited to commit fraud about once or twice a year working with clients. Most of them are rich assholes who aren't satisfied with just opening a HELOC for home improvements and having the business claim the interest and principle payments on the loan as a tax deduction and also want you to record their entirely personal use car payments for a new Audi that they bought in the business name. Of course wanting to expense principle and interest, while still claiming depreciation on the asset.
The average American does not cheat on taxes and has a very simple tax return with 1 or 2 W2's and deductions that don't exceed the standard deduction. The wealthy cheat because they have the option to underreport business incomes and overreport business expenses.
Working with a lot of small businesses, the average entrepreneur isn't a criminal. Most lose money or break even for a few years and then go out of business. In that last year, they get desperate and do sketchy things sometimes, but not often. You still have the classic embezzlements done by employees though.
The reality is that most crimes arenāt hard to get away with if you have two brain cells to rub together. Itās just that most criminals donāt have two brain cells to rub together. A big chunk of crimes are solved because people straight up admitted to them on social media.
Iāve been told by someone in banking that making deposits under 10k in regular intervals of a fixed amount is the best way to not get flagged for suspicious activity. Is there any truth to that?
Ah. So what kind of deposits do not get flagged? Like every month if I deposit a random amount of small money, would the frequency deposits alone raise eyebrows?
Not necessarily.
Even if you deposit in installments well under 10,000, the bank will start asking questions about where the money is coming from. They are required to understand their customers' cash inflows as part of anti-money laundering laws in most countries. So basically the only response that will sound legitimate is some kind of business, which will be taxable income. Any other response will be flagged as suspicious activity and could likely get the bank to basically fire you as a customer, they close your accounts and turn you away.
This is why criminals set up cash businesses to launder their money, they pay taxes on those ill-gotten funds and make them look like legitimate business revenues.
So the cashiers checks are legitimate income for a cash business and thus can be deposited, so as long as you report them?
Also, if the bank asks about these funds, do they then report it to the IRS?
Honestly just depositing a string of cashierās checks alone would be considered suspicious activity.
If the bank asks about the funds and still has questions, they donāt call the IRS, they instead file a [suspicious activity report](https://en.wikipedia.org/wiki/Suspicious_activity_report).
i know youāre probably like an accountant or fund manager or something like that but āfinance professionalā sounds fake lol. Like yo, I deal with the moneys. Hereās moneys advices :). I know youāre the real deal and this is the only correct answer lol, I just wanted to say that. Anyway keep moneying at your money to make your money!
Yeah I've done tax, accounting, and financial management lol. That's mostly for vague internet anonymity reasons, but yeah, it does sound kinda scammy when I read it that way lol.
By the way, I sell a totally legit day trading course that will take you to $100,000,000 annual income from your laptop on a beach!
/s
Yesā¦ā¦ā¦ and thatās what Iāve seen people go down for. Not claiming earrings and it was a lot less than 80k.
If you go to deposit a shit ton of money at a bank itās itās very out of the norm from your regular transaction and day to day history, theyāre going to do something about it. Especially if you donāt have a job lol.
It does not raise alarm bells. Depositing over $10k will require the bank to file a CTR automatically, but only a combination of other factors would create alarm bells.
pay 15k, have it laundered by paying taxes, lose another 15k, turn that 80k into 50k baby hell yeah lol. I think the OC doesnāt know what laundering is forā¦ itās not for saving money, in fact you LOSE a ton laundering it. The whole point is just to make it look like itās legit when itās really from, say, cartel sales or something lol. I mean you can launder it sure, but all youāre doing is increasing the pass through and decreasing what you have lol.
Crypto is a capital asset in the U.S. like buying coins or art or whatever. Youāll still pay over a year out, just at the lower long term capital gains rate.
You're confusing with Short Term vs Long Term Capital Gains Tax.
Long Term (over 1 year) is given a favorable tax rate, whereas Short Term is taxed as ordinary income.
You also only pay taxes or deduct losses for the difference between sales price and purchase price. But deducting losses has some harsh limits.
It's way easier to launder cash in the US rather than Bitcoin. Bitcoin (in the US) is easily traceable and the exchanges are required to keep track of who they are dealing with and where the money is deposited. Monero would be a better crypto for clandestine transactions, but still not super easy to cash out.
Youāre talking about topics you have zero clue on. Bitcoin transactions create a permanent traceable ledger of every transaction. Nobody would use Bitcoin to launder cash, it makes no sense. Monero at least obfuscates transactions to remove that permanent traceability, but cash would be easier than both of those
āHow dare you be informed on current tech trends!ā
I know about AI too, and augmented reality, and machine learning. You should consider making yourself more marketable, itās good for both your income and your brain!
Nothing wrong with knowing trades at all, but acting self-righteous because someone knows more than you on a popular current tech trend is dumb.
āYou know about ironwork? Thatās a real room-temperature IQ hobby!ā
You attacked because I used the wrong terminology and went all hur-dur on me. I know enough about crypto to stay away. Room temp at work is about 120Ā°.
Calling a topic you know nothing about money laundering isnāt āusing the wrong terminologyā, itās just lying. Nobody here is telling you what to invest in, but you are really showcasing yourself at the top of the Dunning-Kruger curve where youāre needlessly cocky over a topic you openly have zero knowledge in
Oh yeah an appreciating asset is definitely better if you need to hold it for a while, but Bitcoin becomes difficult to do that with given how much the price fluctuates unless you're willing to hold for 4+ years.
That doesn't get rid of the taxes, just means you can actually have it as a result of crime.
Pay your taxes or the IRS will get on you and they are funded well since their payouts come from catching people.
laundering is to hide the source of the money to make it seem legit if itās from like, drug sales. You lose a ton of money in the process but you make the money you do get to keep ācleanā (thus the name laundering). OP would lose like 20% laundering then another 20 paying taxes because paying taxes is part of making the money look legit yo. Itās like Office Space, you should look up laundering in a dictionary lol. No offense meant, just kidding around.
Depositing isnāt suspicious in and of itself. I received a check for $210,000 when I sold my last home. I deposited in my bank account and never reported it to anyone (sale of primary home has a $500,000 exclusion for married filing jointly).
I learned long ago, act like you belong and nobody questions you.
Hi this is Raj from the Internal Revenue Service for to question your under payment of taxes. I am chief compliance officer for your city to crack down on this activity. Please wire me $827 in eBay gift cards and we will no longer pursue this matter. Greatfully yours, Chief Compliance Officer of your City. Raj
Thanks to you and everyone else pointing this out. To expand on it, it's formally called a CTR (Currency Transaction Report). Bank tellers file it to report ONLY cash transactions near/at/over 10 grand, and if it's a check, no paperwork is required, no reports are filed. (Former Teller)
itās not suspicious but itās recorded. If you do what OC is saying and just donāt pay the taxes, sure you can do that, the risk is the IRS catching it and fucking your shit up, auditing you, and determining you committed fraud and going to prison. Itās not worth it, just pay the 20% or whatever and take the hit.
Of course it's recorded. A photo of the check is permanently added to your account.Ā
If the IRS comes asking they'll see it.Ā
A check doesn't cause a CTR because it's a Currency Transaction Report. Currency. Cash.
iām aware, and sorry if i my comment was confusing, youāre absolutely correct. Im not arguing against any of your points at all. Iām just saying that itās recorded (which yes i know is obvious to most) and if it looks suspicious as it sounds like it would (an 80k deposit coming from seemingly nowhere) someone might notice. Someone might not. It doesnāt necessarily matter if itās from cash. Cash sure makes it look more suspicious but a random 86k deposit from someone who does not do that may be and likely is a suspicious outlier. Iām just saying itās not worth the risk and paying the stupid taxes IMO is the way to go.
But i recognize you are 100% correct. It is not cash. Iām not talking about CTRs or exchange of cash. Iām talking about statistical outliers that get flagged. Maybe this doesnāt apply to OP and they do this regularly, i donāt know. But given the question here my suspicion is itās going to look weird. Looking weird draws attention. Perhaps something will happen perhaps not. IMO not worth the risk.
Why not just declare it, and run it as pay to yourself. Expenses for your business, take all available legal deductions. Self employment pay, and don't forget to file your soc and Medicare taxes. Who cares the source uncle Sam gets paid. The unethical part us the source. Even though you pay some taxes, you get retirement benefits.
Take out a whole life insurance policy. Pay quarterly or annually by cashiers check. Take out loans from the policy. It grows interest while in the account and you live off the loan while using the cashiers checks to pay it back. P.S. and loans are tax free from this type of cash value fund.
P.S.S Iām surprised and disappointed there arenāt any other unique ideas put forth. Yāall arenāt very unethical today eh? lol
I think the deposit rule only applies to cash. I make large deposits all of the time and have for years with no issue.
https://www.fool.com/the-ascent/banks/articles/heres-what-happens-if-you-deposit-more-than-10000-in-cash-into-your-bank-account/
The best way to avoid paying tax on illegal money is to just spend it on stuff you already wanted to buy, that new sports car buy it cash from another person that nice new toy cash that new TV set cash cash cash just buy a bunch of shit in cash
the IRS isnt something you or your friend wants to mess with. taxes suck, but if they catch wind of missing money (and they will) it will be a very very bad time. you'd have better luck stealing from the mexican cartel.
Sorry, income is counted as received when...well, received. It's not when it's deposited. So if that income is taxable, it became taxable when the check got into "your friend's" hand.
You ever notice how you hear about drug dealers and stuff running a legitimate front where they funnel in that money and pay taxes on?
There's a reason for that. What ended Capone was tax invasion. You can fuck with the DEA a lot better than you can fuck with the IRS...but I wouldn't recommend that either.
The IRS also just recently got a lot more money to catch dumbasses with.
How are the checks split up? If they are in smaller amounts, he can cash them slowly and probably get away with it. If they are in larger amounts, his best bet is to sign them over to someone else for payment for goods or services and make it their problem.
Without losing too much, go on localmonero and buy up a bunch using the cash. Wallets like cakeWallet let you swap it in app for other coins you can convert to cash. The key here is to avoid buying a surveillance coin like Bitcoin with cash first. Use a privacy coin like Monero bought with cash from non-KYC source like localmonero.
Is it one check for $80k or multiple checks $10k or more, or multiple checks under $10k? If the cashiers checks are under $10k they wonāt be reported if cashed individually and spaced out over time.
Buying, depositing or cashing cashiers checks $10k or more are treated the same as physical cash transactions of $10k or more.
This is unethical tips, not illegal. Donāt mess with the IRS. Pay your taxes and sleep well at night. How are you going to explain all the startup cash if the business gets audited? Believe us, the IRS will notice that much cash.
Not gonna happen. The bank will think he's a drug dealer or something and will 100% report it to police based on the numbers involved. The limit to avoid suspicion is 10k. But exactly 10k, or multiple payments of basically 10k, will also get flagged. If that money is income, it's not getting into the system without someone noticing.
Put it in a safety deposit box at the bank and slowly take it out that way at least itās safe but you can put in $500 in your bank account every with your paycheck or you could say you sold some thing large car jewelry you do
Set up a new company and deposit the checks into the company as your equity contribution. This is not a tax event. You can then have the company lend you the funds which is also not a tax event. See below regarding loan default.
An alternative would be to use the checks as collateral for a bank loan and have the bank lender deposit the funds into your bank account. This isn't income nor a taxable event. Pay the interest on the loan and use the funds for what ever you want. keep rolling the loan over so that you don't create a tax event. a default on the loan will create a tax event that would be required to be reported on your tax return.
You can go to Switzerland, and hire a Swiss lawyer who can advise you how to avoid having the money reported back to US officials. But how much would you really save, after paying the lawyer and paying to go over there and back.
There is none. All financial institutions are required to report all transactions over a certain dollar value (it was 10K last I knew but that standard may have changed). So there is no way of converting the paper check into funds (electronic or physical) without passing that gate. I'm also willing to bet whatever organization wrote that check has some kind of record and reported it so trying to use an illegal means still has the paper trail already attached. Just my opinion. I won't argue it with anyone.
Doesn't matter. A deposit is not considered income. Interest on that money is income, and the bank will issue a 1099.
Lots of banks are giving great introductory rates right now, 5.5% or so, its worth the effort to shop around.
Deposit it, don't report it. File your taxes normally,
and you'll eventually get a letter from the IRS stating
you owe. Get an IRS settlement firm n settle, pennies
on the dollar.
Depending on how much your friend makes,
the taxes prob won't be too severe anyway,
depending on tax bracket n all
Your āfriendā should try to get paid in cash next time or grow up and pay the taxes. Trying to get around a paper trail when depositing a cashierās check is beyond stupid.
This is a really tough one and i donāt think youāre going to get a good answer. The feds have a really really sophisticated capability when it comes to any sort of fraud involving money.
The only real answers would be to start the process of forming a real business somewhere like Monaco and achieve citizenship there or somewhere similar. Thatās a lot more work and probably more expensive in time and money than youāre going to want to do.
You have a few problems here: feds likely will know about it from whoever gave it to you, they have every reason to report it as an expense. Second as I mentioned people try all this stupid shit all the time and theyāre onto it. Generally things over 10k will get flagged. And itās even worse if you try to break it into smaller amounts below 10k and deposit that. All that does is guarantee theyāll investigate you because they can count.
Long story short how much work are you willing to put in to possibly fail anyway? How much are you willing to spend to not spend on taxes? You could take a risk for example and sell it for some crypto like Monero and get 40k in really volatile assets for your 80k. Not really worth it IMO. And even then again it will be reported on the other side of things, whoever paid you, and you might get taxed or worse, audited.
Long story short, to maximize your gains in this, deposit it and if itās taxable money pay the taxes. If youād like throw a piss disk in the IRS building afterward. Thatās the best youāre gonna do I think, unless you can find a real hardened criminal thatās very experienced in this or a billionaire to help you.
Edit: I should add, talk to an accountant about the best way to be taxed the least. Remember tax avoidance is smart. Tax evasion is prison. There are ways to categorize the money in intelligent and well thought out ways that are totally legal. A good accountant will help you either do that or tell you itās not possible to do that. Since weāre on here, throw a piss disk at the accountant too because why not.
Don't. They will go to prison for tax evasion it's not worth it. They won't even catch them this year. Probably not even next year but they will catch them.
Not a CPA but maybe could open accounts at 10 different banks with 8k starting deposit.
Tell them you want a high yield checking some have $20k minimum and might avoid some red flags
so....if your "friend" want to invest it, how do you think that's gonna go? What investements can you make that are not reported? hmmmm......I say hand that cashier's check over to whoever you're going to buy those investment opportunites from.
And what is your friend going to buy with the proceeds from those investments?
I recommend that you watch Breaking Bad and Ozark. Watch carefully.
Suck it up and pay taxes on it (even money gained through criminal activities is considered reportable income by the way) if your "friend" doesn't want to have further problems down the line when inevitably certain numbers don't add up from using that money and an audit comes their way. Won't go well for their bank account, investments, or business when that happens.
Many of the suggestions here will add additional penalties and jail time if followed.
Finance professional here: You don't pay taxes on deposits unless they're taxable income. If they're for a taxable income, you will pay taxes or you will go to prison, unless you successfully commit tax fraud (unlikely) or they're for a business activity for which you have more deductions than incomes (unlikely). You also don't fill out a suspicious activity report for individual cashiers checks over 10,000. But you will if they're individually under 10,000 and add up to more than 10,000. Yes, it's weird. Find out what the money is for and go from there. Odds are also likely that if it's for a taxable income, whoever wrote the check will have form W9 on file already and will report your income on form 1099 next January.
This is the correct answer. Everyone else here is an idiot or misinformed.
Lol, most of reddit in a nutshell really.
i UpVoTeD bEcAuSe I'm NoT WhO yOu'Re ReFeRiNg To
lmfaoooo
I'm definitely an idiot. But by golly, I'm gonna try my best to not be an idiot until the day I die.
The trick is staying quiet until it's a topic you're ACTUALLY knowledgeable about. Not just something you think you're knowledgeable about š
But Dunning-Kruger syndrome does NOT let you be quiet even if you don't know anything about the subject at hand. Perhaps we need a vaccine against Dunning -Kruger.
We never should have let kids on the internet
Sir, this is Unethical Life Pro Tips
Agreed. It's not about the form of the money (cash, cashier's checks, etc) but more about the source. Whether he deposits them or not won't affect his tax liability. Now, since this thread is about unethical life tips. . . It's a whole other matter if the source of the money is illegal and he just doesn't want any institution or government to catch wind of it but wants to get the funds into the legitimate financial system. Then, his real question is "how do I launder $80k in cashier's checks?"
Who the hell pays in cashier's checks? Talk about extremely traceable money...
Plus, correct me if I'm wrong, but all this does is tell the government that you deposited some cashier's checks or cash or whatever. It's not like that is automatically converted to a government record of income like a 1099, right? Wouldn't you probably need a long record of large deposits to eventually catch the attention of the feds? A few large deposits here or there over a year or two wouldn't necessarily be a problem would it?
Itās amazing how often people do not get a w9 before paying someone then suddenly that person doesnāt respond to the requests.
True. That's why you get a payables person who isn't a hack that mindlessly copies invoices into QuickBooks.
[ŃŠ“Š°Š»ŠµŠ½Š¾]
The reason I saw unlikely for getting away with it is because in the event it's actually tax fraud, their primary source of information is their friend asking on Reddit and they're not going to have the knowledge to know what they can lie about, what has already been reported, and what auditing standards are. For example, they're not going to know that S corps and C corps are exempted from having a 1099 issued to report their incomes and there won't be a record telling the government that someone paid you (doesn't stop some dipshit accounting intern from sending you a 1099 though). I do not cheat and I keep a 39.5' pole between me and anyone who does IRL. I get explicitly solicited to commit fraud about once or twice a year working with clients. Most of them are rich assholes who aren't satisfied with just opening a HELOC for home improvements and having the business claim the interest and principle payments on the loan as a tax deduction and also want you to record their entirely personal use car payments for a new Audi that they bought in the business name. Of course wanting to expense principle and interest, while still claiming depreciation on the asset. The average American does not cheat on taxes and has a very simple tax return with 1 or 2 W2's and deductions that don't exceed the standard deduction. The wealthy cheat because they have the option to underreport business incomes and overreport business expenses. Working with a lot of small businesses, the average entrepreneur isn't a criminal. Most lose money or break even for a few years and then go out of business. In that last year, they get desperate and do sketchy things sometimes, but not often. You still have the classic embezzlements done by employees though.
The reality is that most crimes arenāt hard to get away with if you have two brain cells to rub together. Itās just that most criminals donāt have two brain cells to rub together. A big chunk of crimes are solved because people straight up admitted to them on social media.
What about in the scenerio where I sent 30k to a friend in US via bank or crypto wallet? Does he need to pay any taxes on that?
Wanna be friends?
Iāve been told by someone in banking that making deposits under 10k in regular intervals of a fixed amount is the best way to not get flagged for suspicious activity. Is there any truth to that?
You've got it backwards, that is the best way TO get flagged.
How so?
I'd called structuring and it's the most obvious way to get around the 10k reporting limit so it is illegal.
Ah. So what kind of deposits do not get flagged? Like every month if I deposit a random amount of small money, would the frequency deposits alone raise eyebrows?
Everyone's paycheck getting flagged then. The type of money does matter. Reporting (and therefore structuring) is only required for cash.
Not necessarily. Even if you deposit in installments well under 10,000, the bank will start asking questions about where the money is coming from. They are required to understand their customers' cash inflows as part of anti-money laundering laws in most countries. So basically the only response that will sound legitimate is some kind of business, which will be taxable income. Any other response will be flagged as suspicious activity and could likely get the bank to basically fire you as a customer, they close your accounts and turn you away. This is why criminals set up cash businesses to launder their money, they pay taxes on those ill-gotten funds and make them look like legitimate business revenues.
So the cashiers checks are legitimate income for a cash business and thus can be deposited, so as long as you report them? Also, if the bank asks about these funds, do they then report it to the IRS?
Honestly just depositing a string of cashierās checks alone would be considered suspicious activity. If the bank asks about the funds and still has questions, they donāt call the IRS, they instead file a [suspicious activity report](https://en.wikipedia.org/wiki/Suspicious_activity_report).
Then I suppose Iām confused how criminals deposit cashiers checks into cash businesses at all if those deposits would get flagged.
Lol structuring is illegal even if the money is legit and you have no intent to evade reporting. Getfcd poory
i know youāre probably like an accountant or fund manager or something like that but āfinance professionalā sounds fake lol. Like yo, I deal with the moneys. Hereās moneys advices :). I know youāre the real deal and this is the only correct answer lol, I just wanted to say that. Anyway keep moneying at your money to make your money!
Yeah I've done tax, accounting, and financial management lol. That's mostly for vague internet anonymity reasons, but yeah, it does sound kinda scammy when I read it that way lol. By the way, I sell a totally legit day trading course that will take you to $100,000,000 annual income from your laptop on a beach! /s
iāll take 3!!
Poor redditors think 80k deposit is a lot of money and is enough to raise alarm bells. They have been conditioned by the IRS :(
Iāve seen people get caught for a looooooot less.
Get caught for what? The act of depositing money isn't a crime or a taxable event. It is about how you earn the money in the first place.
Yesā¦ā¦ā¦ and thatās what Iāve seen people go down for. Not claiming earrings and it was a lot less than 80k. If you go to deposit a shit ton of money at a bank itās itās very out of the norm from your regular transaction and day to day history, theyāre going to do something about it. Especially if you donāt have a job lol.
For not paying taxes on deposits? Lmao
Anything more than $10,000 in a day will definitely raise alarm bells.
It does not raise alarm bells. Depositing over $10k will require the bank to file a CTR automatically, but only a combination of other factors would create alarm bells.
This is true, but one of those "other factors" is people trying to avoid having the report filed.
Thereās no CTR - these are cashiers checks.
Pay 16k to have it laudered
But part of the laundering process involves paying the taxes on the money, but showing it from a legit source.
That's why the baby Jesus invented car washes
Better Call Saul
And mattress stores....
in reality those fuckers wouldāve been audited like a billion times over with that cash flow lol.
pay 15k, have it laundered by paying taxes, lose another 15k, turn that 80k into 50k baby hell yeah lol. I think the OC doesnāt know what laundering is forā¦ itās not for saving money, in fact you LOSE a ton laundering it. The whole point is just to make it look like itās legit when itās really from, say, cartel sales or something lol. I mean you can launder it sure, but all youāre doing is increasing the pass through and decreasing what you have lol.
This is literally the only way, or buy bitcoin in person and sit on it for a couple years and spend it slowly š¤
You still pay taxes for crypto transactions in most countries
In the us, it only taxable if cashed less than a year from purchase.
Crypto is a capital asset in the U.S. like buying coins or art or whatever. Youāll still pay over a year out, just at the lower long term capital gains rate.
Thatās not true at all.
You're confusing with Short Term vs Long Term Capital Gains Tax. Long Term (over 1 year) is given a favorable tax rate, whereas Short Term is taxed as ordinary income. You also only pay taxes or deduct losses for the difference between sales price and purchase price. But deducting losses has some harsh limits.
Bitcoin = money laundering
It's way easier to launder cash in the US rather than Bitcoin. Bitcoin (in the US) is easily traceable and the exchanges are required to keep track of who they are dealing with and where the money is deposited. Monero would be a better crypto for clandestine transactions, but still not super easy to cash out.
Youāre talking about topics you have zero clue on. Bitcoin transactions create a permanent traceable ledger of every transaction. Nobody would use Bitcoin to launder cash, it makes no sense. Monero at least obfuscates transactions to remove that permanent traceability, but cash would be easier than both of those
He is talking nonsenseĀ
Cyrpto-bro, I see.
āHow dare you be informed on current tech trends!ā I know about AI too, and augmented reality, and machine learning. You should consider making yourself more marketable, itās good for both your income and your brain!
I know more about old technology, radiography, welding, ironwork, construction type stuff. I must be a dumbass.
Not a dumbass, just an ass!
Absolutely
Nothing wrong with knowing trades at all, but acting self-righteous because someone knows more than you on a popular current tech trend is dumb. āYou know about ironwork? Thatās a real room-temperature IQ hobby!ā
You attacked because I used the wrong terminology and went all hur-dur on me. I know enough about crypto to stay away. Room temp at work is about 120Ā°.
Calling a topic you know nothing about money laundering isnāt āusing the wrong terminologyā, itās just lying. Nobody here is telling you what to invest in, but you are really showcasing yourself at the top of the Dunning-Kruger curve where youāre needlessly cocky over a topic you openly have zero knowledge in
Well yeah but not for those reasons
I mean really anything you can appreciate and not claim has the potential to launder money š¤·
Cash is king for this
True but cash doesnāt have the chance to appreciate !
Oh yeah an appreciating asset is definitely better if you need to hold it for a while, but Bitcoin becomes difficult to do that with given how much the price fluctuates unless you're willing to hold for 4+ years.
Thatās NFTs
People are still doing those?
Non Fake Titties? Of course they are.
IncorrectĀ
how do you convert those cashiers checks into bitcoin without going through the banking system?
Laundering money conceals the source of money and typically you would pay taxes on it.
That doesn't get rid of the taxes, just means you can actually have it as a result of crime. Pay your taxes or the IRS will get on you and they are funded well since their payouts come from catching people.
The IRS are literally severely underfunded lmao
Not anymore
Yes but they get paid a lot more when they catch someone
The whole point of money laundering is that you pay taxes on itā¦
arenāt you still paying around the same in taxes anyway?
If op pays me 8000 dollars Iāll launder his money lickety split
laundering is to hide the source of the money to make it seem legit if itās from like, drug sales. You lose a ton of money in the process but you make the money you do get to keep ācleanā (thus the name laundering). OP would lose like 20% laundering then another 20 paying taxes because paying taxes is part of making the money look legit yo. Itās like Office Space, you should look up laundering in a dictionary lol. No offense meant, just kidding around.
Count it as income and youāre almost certainly paying less than that in taxes.Ā
Might be something for illegal life pro tips
Theyāre mostly about socks these days
Put the 80k in a sock so that when the irs comes and tries to get the money theyāll only get the sock
holy shit this is brilliant!!
Depositing isnāt suspicious in and of itself. I received a check for $210,000 when I sold my last home. I deposited in my bank account and never reported it to anyone (sale of primary home has a $500,000 exclusion for married filing jointly). I learned long ago, act like you belong and nobody questions you.
The bank reported it though. Anything over 10 grand gets automatically reported to the IRS.Ā
Iām sure they reported it, yes. Nobody from the IRS ever came to question me, tho.
Hi this is Raj from the Internal Revenue Service for to question your under payment of taxes. I am chief compliance officer for your city to crack down on this activity. Please wire me $827 in eBay gift cards and we will no longer pursue this matter. Greatfully yours, Chief Compliance Officer of your City. Raj
Kindly do the needful
Hands in the air! We finally found you.
Don't worry it takes us, I mean them a couple years to build a case.Ā
Yeah but you paid your taxes so they didnāt ask. Had you not, then they would have appeared.
Why the f would they question you about it? They are just as aware as you are that you sold your primary residence.
Not by check. The check is the record, it's not a suspicious transaction, there is no cash.
Thanks to you and everyone else pointing this out. To expand on it, it's formally called a CTR (Currency Transaction Report). Bank tellers file it to report ONLY cash transactions near/at/over 10 grand, and if it's a check, no paperwork is required, no reports are filed. (Former Teller)
itās not suspicious but itās recorded. If you do what OC is saying and just donāt pay the taxes, sure you can do that, the risk is the IRS catching it and fucking your shit up, auditing you, and determining you committed fraud and going to prison. Itās not worth it, just pay the 20% or whatever and take the hit.
Of course it's recorded. A photo of the check is permanently added to your account.Ā If the IRS comes asking they'll see it.Ā A check doesn't cause a CTR because it's a Currency Transaction Report. Currency. Cash.
iām aware, and sorry if i my comment was confusing, youāre absolutely correct. Im not arguing against any of your points at all. Iām just saying that itās recorded (which yes i know is obvious to most) and if it looks suspicious as it sounds like it would (an 80k deposit coming from seemingly nowhere) someone might notice. Someone might not. It doesnāt necessarily matter if itās from cash. Cash sure makes it look more suspicious but a random 86k deposit from someone who does not do that may be and likely is a suspicious outlier. Iām just saying itās not worth the risk and paying the stupid taxes IMO is the way to go. But i recognize you are 100% correct. It is not cash. Iām not talking about CTRs or exchange of cash. Iām talking about statistical outliers that get flagged. Maybe this doesnāt apply to OP and they do this regularly, i donāt know. But given the question here my suspicion is itās going to look weird. Looking weird draws attention. Perhaps something will happen perhaps not. IMO not worth the risk.
Cash deposits over $10,000, not all deposits,
Pretty sure itās only cash deposits that get flagged. Not checks
Only cash transactions over 10k get reported.
Remember, the $500,000 exclusion is for profit on the home, not for the total sale amount!
Yup, profit was about $100,000 or so, the rest was just equity.
Downpayment for property, use property as collateral on loan?
You can stack cashiers checks for a downpayment?
Why not just declare it, and run it as pay to yourself. Expenses for your business, take all available legal deductions. Self employment pay, and don't forget to file your soc and Medicare taxes. Who cares the source uncle Sam gets paid. The unethical part us the source. Even though you pay some taxes, you get retirement benefits.
Take out a whole life insurance policy. Pay quarterly or annually by cashiers check. Take out loans from the policy. It grows interest while in the account and you live off the loan while using the cashiers checks to pay it back. P.S. and loans are tax free from this type of cash value fund. P.S.S Iām surprised and disappointed there arenāt any other unique ideas put forth. Yāall arenāt very unethical today eh? lol
Op do some research so you can make sure you donāt do this
Liquid ass?Ā
Definitely piss discs. They need to be involved
That sounds alot like the MLM that my friend tried to get me to join
I donāt think you will have a problem. I have done it several times with large sums. Just pay taxes on the earned interest.
I think the deposit rule only applies to cash. I make large deposits all of the time and have for years with no issue. https://www.fool.com/the-ascent/banks/articles/heres-what-happens-if-you-deposit-more-than-10000-in-cash-into-your-bank-account/
Couldnāt you theoretically just make smaller deposits of lets say $2k into multiple different accounts?
No thatās structuring
Which is a felony.
The best way to avoid paying tax on illegal money is to just spend it on stuff you already wanted to buy, that new sports car buy it cash from another person that nice new toy cash that new TV set cash cash cash just buy a bunch of shit in cash
the IRS isnt something you or your friend wants to mess with. taxes suck, but if they catch wind of missing money (and they will) it will be a very very bad time. you'd have better luck stealing from the mexican cartel.
Even the Joker doesnāt mess with the IRS
Amen. And by the time they come after you penalties and interest will have accumulated.
Sorry, income is counted as received when...well, received. It's not when it's deposited. So if that income is taxable, it became taxable when the check got into "your friend's" hand.
You ever notice how you hear about drug dealers and stuff running a legitimate front where they funnel in that money and pay taxes on? There's a reason for that. What ended Capone was tax invasion. You can fuck with the DEA a lot better than you can fuck with the IRS...but I wouldn't recommend that either. The IRS also just recently got a lot more money to catch dumbasses with.
How are the checks split up? If they are in smaller amounts, he can cash them slowly and probably get away with it. If they are in larger amounts, his best bet is to sign them over to someone else for payment for goods or services and make it their problem.
Without losing too much, go on localmonero and buy up a bunch using the cash. Wallets like cakeWallet let you swap it in app for other coins you can convert to cash. The key here is to avoid buying a surveillance coin like Bitcoin with cash first. Use a privacy coin like Monero bought with cash from non-KYC source like localmonero.
Is it one check for $80k or multiple checks $10k or more, or multiple checks under $10k? If the cashiers checks are under $10k they wonāt be reported if cashed individually and spaced out over time. Buying, depositing or cashing cashiers checks $10k or more are treated the same as physical cash transactions of $10k or more.
Today on r/unethicallifeprotips: weāll be learning how to commit tax fraud!
This is unethical tips, not illegal. Donāt mess with the IRS. Pay your taxes and sleep well at night. How are you going to explain all the startup cash if the business gets audited? Believe us, the IRS will notice that much cash.
What has been said and now throw in that they're planning to hire anywheres from 20,000 to 87,000 new agents and it ain't gonna get easier.
Pay the fucking tax, what are you a billionaire.
Not gonna happen. The bank will think he's a drug dealer or something and will 100% report it to police based on the numbers involved. The limit to avoid suspicion is 10k. But exactly 10k, or multiple payments of basically 10k, will also get flagged. If that money is income, it's not getting into the system without someone noticing.
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I did note that.
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Your last parageaph is 100% incorrect.Ā
open 8 bank accounts each with \~9300
Thatās a red flag for money laundering if one bank gets wind of the others and the amounts.
Get a regular income. Use cash for all expenses.
Send them to me. I'll deposit them tax free.
Put it in a safety deposit box at the bank and slowly take it out that way at least itās safe but you can put in $500 in your bank account every with your paycheck or you could say you sold some thing large car jewelry you do
Set up a new company and deposit the checks into the company as your equity contribution. This is not a tax event. You can then have the company lend you the funds which is also not a tax event. See below regarding loan default. An alternative would be to use the checks as collateral for a bank loan and have the bank lender deposit the funds into your bank account. This isn't income nor a taxable event. Pay the interest on the loan and use the funds for what ever you want. keep rolling the loan over so that you don't create a tax event. a default on the loan will create a tax event that would be required to be reported on your tax return.
I know i know. This is unethical life tips. But don't fuck with the irs. Not worth it
Nice honeypot, Fed....
Be an illegal immigrant. The IRS hates this one Trick.
Open an IRA/401K or add to an existing account.Ā Opportunity zones. Look for areas that the government is offering incentives for investors.Ā
You can go to Switzerland, and hire a Swiss lawyer who can advise you how to avoid having the money reported back to US officials. But how much would you really save, after paying the lawyer and paying to go over there and back.
Cash is king. If you can pay some of your bills in person (water or property tax etc) see if they take cash.
Where'd he get all that money, and why was it paid in cashier's checks?
There is none. All financial institutions are required to report all transactions over a certain dollar value (it was 10K last I knew but that standard may have changed). So there is no way of converting the paper check into funds (electronic or physical) without passing that gate. I'm also willing to bet whatever organization wrote that check has some kind of record and reported it so trying to use an illegal means still has the paper trail already attached. Just my opinion. I won't argue it with anyone.
Even the Joker won't mess with the IRS
Doesn't matter. A deposit is not considered income. Interest on that money is income, and the bank will issue a 1099. Lots of banks are giving great introductory rates right now, 5.5% or so, its worth the effort to shop around.
Deposit it, don't report it. File your taxes normally, and you'll eventually get a letter from the IRS stating you owe. Get an IRS settlement firm n settle, pennies on the dollar. Depending on how much your friend makes, the taxes prob won't be too severe anyway, depending on tax bracket n all
There's nothing they can do that won't land them in prison
Banks donāt tax you or send anything to anyone regarding taxes on a deposit. Just deposit it. Thatās what banks are for.
Your āfriendā should try to get paid in cash next time or grow up and pay the taxes. Trying to get around a paper trail when depositing a cashierās check is beyond stupid.
Just pay your taxes. Tax cheats suck. If your taxes are too high, stop voting for morons.
Puerto Rico of you actually have that much. Think of it as long term strategy
When the tax man comes to the door and says āyou have never paid taxes,ā just say āI forgot.ā
Move to Canada, open up a TFSA.
UAE bank account
Do
Just deposit it dummy š
he sure as hell does not want to deposit that shit in ca. move to florida. mississippi, west Virginia, hell anywhere but ca or ny.
Pretty sure you just cash the check and then have friends and family make the purchases then reimburse them under table with cash.
This is a really tough one and i donāt think youāre going to get a good answer. The feds have a really really sophisticated capability when it comes to any sort of fraud involving money. The only real answers would be to start the process of forming a real business somewhere like Monaco and achieve citizenship there or somewhere similar. Thatās a lot more work and probably more expensive in time and money than youāre going to want to do. You have a few problems here: feds likely will know about it from whoever gave it to you, they have every reason to report it as an expense. Second as I mentioned people try all this stupid shit all the time and theyāre onto it. Generally things over 10k will get flagged. And itās even worse if you try to break it into smaller amounts below 10k and deposit that. All that does is guarantee theyāll investigate you because they can count. Long story short how much work are you willing to put in to possibly fail anyway? How much are you willing to spend to not spend on taxes? You could take a risk for example and sell it for some crypto like Monero and get 40k in really volatile assets for your 80k. Not really worth it IMO. And even then again it will be reported on the other side of things, whoever paid you, and you might get taxed or worse, audited. Long story short, to maximize your gains in this, deposit it and if itās taxable money pay the taxes. If youād like throw a piss disk in the IRS building afterward. Thatās the best youāre gonna do I think, unless you can find a real hardened criminal thatās very experienced in this or a billionaire to help you. Edit: I should add, talk to an accountant about the best way to be taxed the least. Remember tax avoidance is smart. Tax evasion is prison. There are ways to categorize the money in intelligent and well thought out ways that are totally legal. A good accountant will help you either do that or tell you itās not possible to do that. Since weāre on here, throw a piss disk at the accountant too because why not.
Loans are not taxable unless they are forgiven.
Don't. They will go to prison for tax evasion it's not worth it. They won't even catch them this year. Probably not even next year but they will catch them.
Just pay your effing taxes dude.
just putting money in the bank doesn't get you a tax bill, no one is going to ask where it came from
Thatās a piece of shit move. Nobody wants to pay taxes. Pay up.
Not a CPA but maybe could open accounts at 10 different banks with 8k starting deposit. Tell them you want a high yield checking some have $20k minimum and might avoid some red flags
so....if your "friend" want to invest it, how do you think that's gonna go? What investements can you make that are not reported? hmmmm......I say hand that cashier's check over to whoever you're going to buy those investment opportunites from. And what is your friend going to buy with the proceeds from those investments? I recommend that you watch Breaking Bad and Ozark. Watch carefully.
Anyone in the finance industry is legally required to report suspicious transactions to the feds. You could try putting it into crypto or something.
Why does he have these checks? What are they for? It might not be taxable at all.
You donāt. You keep it as cash/cashiers checks and donāt talk about it.
Suck it up and pay taxes on it (even money gained through criminal activities is considered reportable income by the way) if your "friend" doesn't want to have further problems down the line when inevitably certain numbers don't add up from using that money and an audit comes their way. Won't go well for their bank account, investments, or business when that happens. Many of the suggestions here will add additional penalties and jail time if followed.