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Updated about 9 years ago on . Most recent reply
Cash in hand, proof of funds?
Hello BP community! I've been hanging out in the shadows for some time now reading posts, listening to podcasts etc. Well after a year plus of research its time to make an offer on my first deal. I need to get some form of "proof of funds" letter together. So here's my question. I Have all the cash for the deal. Only about a third of it is in the bank and the rest is cash in hand. Obviously I can deposit it in my bank account, then just get a letter from the bank saying I have x amount in my account. My concern is if i deposit a large sum of money in my account will I have to pay taxes on it or have any other red flags raised? Ive been saving for almost 5 years and everything has come from my employment so its already been taxed. I'd hate to be taxed again or raise my current tax bracket etc. Am I over thinking this? Any ideas or input would be greatly appreciated!
Thanks
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Originally posted by @Daniel Ahern:
If you want to avoid the trouble of raised eye brows, perhaps make a few deposits - all less than $10K.
Do not do this. This is called structuring, and is illegal. Even if the money you have is legal, structuring deposits to avoid IRS notification will get you in trouble.
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