Bank deposits and IRS reporting

[Elite0429]

we just sold my wife's car for 8k. she mentioned that we shouldn't deposit it all at one time because the IRS will know about it. is there such a thing that banks report large deposits to the IRS. if so what is the limit to where banks will NOT report it to the IRS?

[huntressjourney]

I thought it was $10k....but yes, it’s a thing.


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[SaintBlaise]

Your ok with 8k. Keep your bill of sale.

[TxAg]

Can't wait till I find a giant suitcase full of drug money

[Elite0429]

Your ok with 8k. Keep your bill of sale.

in Louisiana our title is the bill of sale. the notary gave us a copy to keep.

Thanks

[The Crippler]

They know about it now.

[TxAg]

The person who bought the car will have to pay sales tax but you don't owe anything.

[SaltwaterSlick]

They CAN report it, anything over $5K... they don't have to... Anything 10K and over they MUST report it... But if it was a legal transaction, do big deal... You don't owe any taxes on the private sale of a used car (as long as you didn't "make" real money/value on the sale).

[Throwin Darts]

we just sold my wife's car for 8k. she mentioned that we shouldn't deposit it all at one time because the IRS will know about it. is there such a thing that banks report large deposits to the IRS. if so what is the limit to where banks will NOT report it to the IRS?

What is there to know about? I really doubt you are selling the car for a profit and owe tax on the gain.

[Elite0429]

The person who bought the car will have to pay sales tax but you don't owe anything.

he paid the taxes on the right there on the spot I believe.

[ATI]

as long as it's under $10K you're fine.

[BitBackShot]

I have several deposits larger than the threshold every month and have for 10+ years and have never been asked a single question by the IRS. It's all completely legit and I pay all of my taxes, just saying that even though the IRS may technically know about it, it's more of a tool they keep in their pocket once they suspect someone may be cheating the system.

[Bear82]

Banks really only worry about anything over $10k. Our old deer lease made us pay cash. When you go to get $12k cash out, all the managers come ask questions what its for.

[Playa]

Are you worried that if you get audited you will have to pay income tax on the proceeds?

[CaptainDave]

Deposit the money and move on. IRS couldn't care less. They are under staffed and have much bigger fish to go after than asking about a random $8K transaction on your bank statement.

On top of that, if it was just a personal vehicle (i.e. not business related with depreciation, etc.), there is just about no way you had any type of taxable gain on the sale. Cars typically are not appreciable assets (obviously, there are exceptions to that). I mean, most people sell their used car for much less than they paid for it.