Money Transfers to Bank

[bob duffer]

I recently sold a car and was having the funds sent from Florida to Michigan into my bank account. It is over 20,000.00.

Will the IRS get me for taxes if the money is put into my checking account? Is there a better way to do it if so?

Thanks

[JWLawrence]

I would talk to a tax accountant or attorney. Maybe someone here is one. Probably no taxes unless the sales price is more than what you paid for the car. The reporting is for crime prevention for those transactions more than $10,000.

[Matt Harwood]

No, you're in no danger from the IRS for a wire transfer of that size. You'll have to explain the money on your taxes, but it is usually only cash transactions over $10,000 that trigger IRS audits (that is, you walk in and drop a pile of $100s on the teller).

We do wires every day and it's a non-issue as far as the IRS is concerned as long as you declare the money and explain it when the time comes. DO NOT cheat on your taxes. They have been cracking down on car collectors who, I'm sorry to say, are pretty notorious for title skips, not paying sales tax, under-reporting purchase and sales prices, etc. They WILL be watching. Declare your income, but remember that it only counts if it was profit--if you bought the car for $10,000 and paid someone $30,000 to restore it, then sold it for $25,000, you shouldn't owe anything since technically you lost money on it. Your time, however, is worthless as far as the IRS is concerned, so only declare things for which you've paid someone else (and hopefully have receipts).

Hope this helps!

[cahartley]

^ Ditto on receipts.

You can have a mile high pile of canceled checks which the IRS will consider worthless.

The ONLY acceptable PROOF is invoices.

[Guest AlCapone]

I respectfully disagree. I had to complete an IRS form when I deposited the bank draft. It is not only IRS it is also a copy to Homeland Security. That was within the last month ! Wayne

[Guest GT52]

...Will the IRS get me for taxes if the money is put into my checking account?...

Thanks

You might want to read this thread:

http://forums.aaca.org/f169/capital-gains-taxes-old-cars-384277.html

The way you asked the question suggests you might be looking for a way to avoid having the IRS collect the tax you might owe. There is no legal way. There are so many little tracks left during the sale of an automobile nowadays, as was suggested, trying to cheat the IRS out of their cut is a road fraught with peril. Depending on your income, the capital gains taxes on a gain as small as you might have on a $20K car may not be all that much...figure it, or have someone figure it, before you decide on doing something that may get you in trouble.

[TexRiv_63]

A little tip on wire transfers - open a minimum deposit checking account just for such transfers. Assuming you have other accounts at the bank they should do this for you with no fees. Transfer the money in and out when you buy or sell, that way you are not sharing your main account numbers with anyone.

As far as the tax issues, listen to Matt.

[alsancle]

Every time you give someone a check you are sharing your account number.

[ted sweet]

exactly

[vermontboy]

There is not much private anymore - you can guard your social security all you want but it is used as your Medicare number when you turn 65. It wasn't that long ago when people put there social security numbers on their checks and the police were advising people to engrave their social security number into valuable objects so they could be tracked in case of theft.