The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: "Carry Tax"||Date: 7/17/2005 11:44 PM|
|Author: Wradical||Number: 80070 of 122099|
What are the tax implications of walking into a bank and trying to deposit, oh, say 40k in cash that your recently passed away grandfather stashed under the floor?
In theory, none. But that assumes you can prove the source of the money, and that it was an inheritance.
The bank will require the completion of a CTR (Cash transaction report, form 8300), for a cash transaction over $10,000.
This may get you some attention from the IRS when your tax return doesn't reflect the $40,000, as it shouldn't, if the situation is as you describe it.
While it may not actually be income, they may be inclined to assume it is, especially if you have no evidence to the contrary.
Questions may also arise, such as:
If the money belonged to your late grandfather, how come you are depositing it, instead of, say, your mother or father, as the case may be?
How is it really yours, vs. other relatives?
Are you the executor/administrator/personal representative of his estate?
You may have issues beyond the tax implications.
|Copyright 1996-2015 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|