BigB333

I wonder how many people actually pay cash for an S-class?

jl88

Only if you have the credit to back it up. Making large traceable purchases in cash is one good way to attract the attention of the IRS....

young

as long as you don't have anything to hide, its fine. of course, any over $10k cashtransaction gets reported b/c you could be a drug dealer!!

Mr. Xristo

it doesn't make sense to pay cash for a car.. It would be like paying cash for a house.

Although some of us can afford to dump cash out like that is doesn't make sense, especially with today's rates, etc.

My buddy refinanced his house (big profits), and purchased his 2003 M5 with the money. So he receives the nice sub 7% for the refinance, and ALSO is able to write off the interest from the refinance loan. It is not bad for him, as after refinancing his house, he still has a great deal of equity in it.

Any others agree? Disagree?

JamE55

Young

That's interesting. You said that anything over $10k gets reported... who reports it? And is that on all states?

dtclk320

I know this happens in ny. IRS is nationwide so i assume they would do it in every state.

Mr. Xristo

To the best of my knowledge any large cash transaction occuring at a bank that is $10,000 or higher is reported to the I.R.S. This is a federal law.

Here you are gents.

Reporting Cash Payments of Over $10,000 (Received in a Trade or Business)


Example 1. Pat Brown is the sales manager for Small Town Cars. On July 1, 1997, Jane Smith buys a new car from Pat and pays $18,000 in cash. Pat asks for identification from Jane to get the necessary information to complete Form 8300. A filled-in form is shown in this publication.

Pat must mail the form to the address shown in the form's instructions by July 16, 1997. He must also send a statement to Jane by January 31, 1998.

Example 2. Using the same facts given in Example 1, suppose Jane had arranged to make cash payments of $6,000 each on July 1, August 1, and September 1. Pat would have to file a Form 8300 by August 16 because he would have received two cash payments within one year (July and August) that total over $10,000. Pat would not have to report the remaining $6,000 cash payment because it is not more than $10,000. However, he could report it if he felt it was a suspicious transaction.

Hope this helps. Tis why when you come across large sums of cash, to use a money order, or just finance the thing and use your cash to pay instead of drawing attention to yourself.

JamE55

Thanks for the good info SL!

Mr. Xristo

You betcha...

JamE55

NT

Fast Eddy

I know that this fellow hrmdv zkp payed cash for all his Buicks and in addition he hangs out here in the MB forums!!

JamE55

lol!!