how should i go about keeping the IRS off my ass??

drolove

drolove

Well-Known Member
i know you can put anything under $10,000 into the bank without it being reported to the IRS but how would you go about buying expensive things over that mark? im guessing you would have to setup some sort of fake business to say thats where your earnings came from or what? i have no knowledge on this subject so i hope some of you guys can shed some light for me. making good under the table money and would like to cover my ass just in case. THANKS FOR THE HELP AND INFO!
 
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NoDrama

Well-Known Member
USe two types of payment. Pay part of it with a check and part of it with cash.

FYI A bank can report whatever amount they wish, it doesn't have to be $10,000, but that is the normal threshold. Some banks report if they see more than $5000 in cash deposits over a year period.
 
drolove

drolove

Well-Known Member
NoDrama said:
USe two types of payment. Pay part of it with a check and part of it with cash.

FYI A bank can report whatever amount they wish, it doesn't have to be $10,000, but that is the normal threshold. Some banks report if they see more than $5000 in cash deposits over a year period.
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ya i heard that too but i know they HAVE to report over $9,999. to be honest i dont use the bank much and pay most things in cash. but theres a couple things ive been looking into around the $20k-$30k range so i was wondering how to go about that. guess i could just do cash payments under $10k.
thanks for the info man.
 
ta2drvn

ta2drvn

Well-Known Member
What you are talking about is money laundry, setting up shell company is common for this type of thing but remember this piece of advise an attorney once gave freely, try to only break one law at a time. If you are that concerned about the IRS, claim the money on your taxes, you can be very vauge as to its source but I would prob look at filing as a farmer or gardener, herbalist, hobby activity, gardening sales, ect but you might want to try finding a cpa that is mmj friendly, in ca there are plenty.

How does anyone not know that you bought a storage unit and sold the contents at swap meet and are depositing the proceeds and that you are intent on reporting the income, or if you sold a rare baseball card, or did somebodys yard work, to deposit that 15k or 20k, if you pay the taxes they dont care. But you do need to beware that once you start paying taxes on it, if the mj laws go backwards this stuff could incriminate you as well. But talk to attorney for legal advise.
 
H

hair of the dog

Member
ta2drvn said:
But talk to attorney for legal advise.
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That ought to be carved in stone. Best advice yet.

As far as the IRS goes, pay your taxes. That keeps them happy. My accountant told me two thing you may want to hear. First, the IRS is amazingly good at figuring out how much money you spend. Spend more than you 'make' and they figure it out. Second, the IRS is more concearned with how much you make and how much tax you pay than they are with how you made it. Other official entities see it differently, and your taxes may get them looking at you, but that's another matter.

If you don't have a lawyer who has a general idea of what you do and what sort of advice you need, get one.
 
ta2drvn

ta2drvn

Well-Known Member
Go out and buy a tax program (tubo tax, kiplinger Taxcut, ect) play with it and run through as if you had a some self employment income,. You will find that 'your business' doesnt have to have a name and you will get a drop down menu of 'types' of business you have, I'm sure you will find something very 'similar' to what you are actually doing. The cost is under $40 bucks.

This will give you some basic understanding of how to pay, basic ways of filing, and may make it easier to understand when you go talk to a cpa or tax preparer (the cert tax preparer may be easier to talk to and less expensive than a cpa, but you will get better advise imo from a cpa).
 
ta2drvn

ta2drvn

Well-Known Member
rocpilefsj said:
Cash leaves no paper trail...
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It might, hard to buy high end items in cash, if you only make 40-60k year, have a mortgage of 2k mth, could you paper trail how you own a brand new 100k car registered to you? Like a poster mentioned irs can see how you spend, try buying a house in cold hard cash, its harder than you may think, especially if that cash was never in your bank account, the seller is going to have to report were he got cash to deposit in his account, the transfer will be reported to local and state officials and feds when they file their returns.

But it could also be from gambling sources and that you can claim on taxes and pay tax on that, who's to say you didnt do really good at the monthly poker game you play with buddies... Who's to say that your patients/clients arent at that poker game each month, who knows you might even be able to buy into that game with weed or cash and who knew how good you are at buying in with no cash and only weed and every week you seem to walk away from those suckers at the table with all their cash, I dont know, it's happened to people I know, so I'm sure it could happen to you as well, but who knows...
 
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silasraven

Well-Known Member
what bank account can you have not in the USA? i watch the news allot and see some of these guys from businesses getting harassed for having offshore accounts where they stick the profit and people call it protecting your share holders. what account in euro anywhere will not be affected by such?
 
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deepsouth

Member
exactly pay using cash and sign a bill of sale for way lower than the value of the item.

if your buying a Ferrari for 60k try to get the car on a bill of sale for like 10k stating that it is wrecked or something like that.

a bill of sale will downplay the value and not put you in much hot water and if anything sell that high priced item after you buy it to show you making like 60k from just one car.
repeat as needed.
 
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