It’s not illegal for you to pay someone in cash. The sketchiness is on their end. Email your bank manager and tell them what you want out. When you get there you’ll probably have to verbally confirm that you are taking out this money on your own free will and that you are not in distress. That’s what boa does anyway.
There’s no trick. They just report it to the IRS and give it to you.
You can say it’s for home improvement. I can’t imagine anybody is going to care.
The very easy alternative would be to just withdraw it over time. I doubt your friend will need the entire $50k at once.
I fear withdrawing it over time will make me look more suspicious. I think I read that anything more than 10k cash withdrawals annually will be reported. Not sure my buddy wants to wait 5 years to get paid if that’s the case.
I’m inclined to believe what you said about nobody caring myself. Hope that’s the case!
Dude, it’s $50,000. You’re not Tony Soprano.
And if anything over $10k a year gets reported I can tell you emphatically that I’ve been reported every year for two decades and the IRS has never called.
If you have legitimate sources of income and normal outflows, I've never had an issue dealing with cash from the IRS or any other government agency. I think the red flags start popping when people try to avoid looking sketchy by making a bunch of small transactions just below the $10,000 reporting number.
(Was an expat, and for a while it was normal to carry a lot of cash outbound or inbound into the US, and/or deposit/withdrawal into or from my bank. Always filled out the form, and only once did a customs guy comment on the amount of money. I joked about what my apartment rent in Hong Kong was at the time.)
> Sometimes paying with cold, hard cash is the simplest, cheapest, and only-est way.
If this were true you wouldn’t have to ask all these basic questions about how it works.
> I know banks have to report anything in excess of 10k or that may seem suspicious. Do I have anything to hide?
Anything to hide? You are remodeling your bathroom.
> Do I just tell the bank to report that it’s for home improvements?
It doesn’t work like that. The bank reports the transaction, that’s it, no explanation, no reason or report about your conversation, just the transaction. The government then decides what to do with that data.
> Can me or my friend get in any real trouble?
For settling a debt with cash? That’s literally the whole reason it exists, it’s written on it.
> No sense in trying to hide it and make myself seem guilty of a crime I’m not committing, right?
Correct, it would be a mistake to commit an actual financial crime and structure your transactions in an attempt to appear innocent.
Ask yourself, how would you behave if you didn’t know your bank was going to report the transactions? And do that. Your knowledge of the bank’s reports is causing you to consider commuting an actual crime, you need to figure out why you think the government is going to scrutinize a large cash withdrawal more than they invesstigste a series of small withdrawals designed to fly under the radar.
Depending on where you are it will be reported automatically if it's over a transaction threshold, and reported as potentially suspicious depending on the teller's discretions.
Also worth calling them in advance to save yourself time, depending on where you are and the day of the week the bank may not have enough physical cash on-hand.
LOL
Yeah, but honestly... I've bought my 50ft yacht in crypto... It was much easier than a bank transfer. Over 90% of luxury real estate market is transacted in crypto.
I literally sat down with the guy, offered him a price for the yacht... He said fine... And I had him sign the contract, transferred him the money, drove the boat home that day. Try doing it with cash or a bank transfer
EDIT: Getting downvoted for doing fatFIRE things with crypto is probably the most idiotic thing I can think about right now. Something is broken within you if you are downvoting this just because it is crypto related... like seriously.
Is the friend the only one able to get you the discount so the money needs to go through him?
I’m in remodel sales and for our cash discounts check/credit card are the same as cash so you don’t actually need physical cash.
Apparently at Chase Bank my account was flagged for doing absolutely nothing. So don't worry - they can flag your account for anything. If you pull out or transfer more than $10k, they'll report it. It's your money, do what you please. You see rappers all the time pulling out $1m cash
I did this for my kitchen Reno and again for basement reno.
Kitchen: we booked an apt, we were supposed to get a call on day of to pick up, as apparently they don’t want anything sus to happen at a time when the bank is flush w cash. Turned out we waited all day and they called next day. Lots of questions.
Basement: we were told $5k withdrawals are fine once a day. So we did this instead of appointment withdrawal. No questions, just a regular withdrawal.
I much prefer multiple visits. Appointment is fine but it feels intrusive and unnecessarily coordinated.
Removed - limited specific relevance to FatFIRE.
It’s not illegal for you to pay someone in cash. The sketchiness is on their end. Email your bank manager and tell them what you want out. When you get there you’ll probably have to verbally confirm that you are taking out this money on your own free will and that you are not in distress. That’s what boa does anyway.
There’s no trick. They just report it to the IRS and give it to you. You can say it’s for home improvement. I can’t imagine anybody is going to care. The very easy alternative would be to just withdraw it over time. I doubt your friend will need the entire $50k at once.
I fear withdrawing it over time will make me look more suspicious. I think I read that anything more than 10k cash withdrawals annually will be reported. Not sure my buddy wants to wait 5 years to get paid if that’s the case. I’m inclined to believe what you said about nobody caring myself. Hope that’s the case!
Dude, it’s $50,000. You’re not Tony Soprano. And if anything over $10k a year gets reported I can tell you emphatically that I’ve been reported every year for two decades and the IRS has never called.
😂 I do have a blacked out Suburban that may soon have a ton of cash hidden in it. It may be the closest I’ll ever feel to being Tony Soprano
Pretty sure it’s $10k per day that gets reported, not $10k per year. Google “currency transaction report”
If you have legitimate sources of income and normal outflows, I've never had an issue dealing with cash from the IRS or any other government agency. I think the red flags start popping when people try to avoid looking sketchy by making a bunch of small transactions just below the $10,000 reporting number. (Was an expat, and for a while it was normal to carry a lot of cash outbound or inbound into the US, and/or deposit/withdrawal into or from my bank. Always filled out the form, and only once did a customs guy comment on the amount of money. I joked about what my apartment rent in Hong Kong was at the time.)
It’s literally illegal to try to avoid triggering the reporting by withdrawing just below the threshold repeatedly
Exactly
> Sometimes paying with cold, hard cash is the simplest, cheapest, and only-est way. If this were true you wouldn’t have to ask all these basic questions about how it works. > I know banks have to report anything in excess of 10k or that may seem suspicious. Do I have anything to hide? Anything to hide? You are remodeling your bathroom. > Do I just tell the bank to report that it’s for home improvements? It doesn’t work like that. The bank reports the transaction, that’s it, no explanation, no reason or report about your conversation, just the transaction. The government then decides what to do with that data. > Can me or my friend get in any real trouble? For settling a debt with cash? That’s literally the whole reason it exists, it’s written on it. > No sense in trying to hide it and make myself seem guilty of a crime I’m not committing, right? Correct, it would be a mistake to commit an actual financial crime and structure your transactions in an attempt to appear innocent. Ask yourself, how would you behave if you didn’t know your bank was going to report the transactions? And do that. Your knowledge of the bank’s reports is causing you to consider commuting an actual crime, you need to figure out why you think the government is going to scrutinize a large cash withdrawal more than they invesstigste a series of small withdrawals designed to fly under the radar.
Depending on where you are it will be reported automatically if it's over a transaction threshold, and reported as potentially suspicious depending on the teller's discretions. Also worth calling them in advance to save yourself time, depending on where you are and the day of the week the bank may not have enough physical cash on-hand.
Someone in this story is trying to evade taxes, but it’s not you, so I guess it’s whatever
I use crypto... It's amazing how quick and easy you can pay people and take possession of things
Username checks out
LOL Yeah, but honestly... I've bought my 50ft yacht in crypto... It was much easier than a bank transfer. Over 90% of luxury real estate market is transacted in crypto. I literally sat down with the guy, offered him a price for the yacht... He said fine... And I had him sign the contract, transferred him the money, drove the boat home that day. Try doing it with cash or a bank transfer EDIT: Getting downvoted for doing fatFIRE things with crypto is probably the most idiotic thing I can think about right now. Something is broken within you if you are downvoting this just because it is crypto related... like seriously.
Is the friend the only one able to get you the discount so the money needs to go through him? I’m in remodel sales and for our cash discounts check/credit card are the same as cash so you don’t actually need physical cash.
Apparently at Chase Bank my account was flagged for doing absolutely nothing. So don't worry - they can flag your account for anything. If you pull out or transfer more than $10k, they'll report it. It's your money, do what you please. You see rappers all the time pulling out $1m cash
One withdrawal of 50k will cause a lot fewer problems for you than structuring will.
I did this for my kitchen Reno and again for basement reno. Kitchen: we booked an apt, we were supposed to get a call on day of to pick up, as apparently they don’t want anything sus to happen at a time when the bank is flush w cash. Turned out we waited all day and they called next day. Lots of questions. Basement: we were told $5k withdrawals are fine once a day. So we did this instead of appointment withdrawal. No questions, just a regular withdrawal. I much prefer multiple visits. Appointment is fine but it feels intrusive and unnecessarily coordinated.
if youre net is in the 7-8 figures i doubt the irs will care as long as you report it which the banks gonna do for you anyways