The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies

URL:  http://boards.fool.com/would-eight-of-5k-deposits-spaced-over-a-couple-22767761.aspx

Subject:  Re: "Carry Tax" Date:  7/19/2005  8:43 AM
Author:  TMFPMarti Number:  80080 of 123001

Would eight of $5K deposits spaced over a couple of months avoid all unnecessary attention? Could even be done at an ATM.

I was wondering when this would come up, which is why I've stayed out of the discussion. The motivator for currency transaction reporting is money laundering, not tax enforcement. This series of transactions would be much more likely to trigger investigative interest than a one-time $40,000 cash deposit. (It's also illegal if done with the intent to avoid transaction reporting, and the banks are required to report these patterns.) It's easy to explain that you inherited $40,000 cash, but not easy to explain why you're trying to slip under the radar. From a tax standpoint, this a