HELP - Seller Insists on a Physical Bag of Cash Under the Table

[Blake Dailey]

I have a seller insisting that the only way he will sell is with a physical bag of cash ($40k or more) under the table so that he does not have to report that income (in Florida). He wants to seller finance a lesser amount if I can deliver the cold, hard cash. If I do this upon closing is the liability his since he would be the one collecting the income and not reporting it or could I be held responsible as well? The deal is good but if it's illegal then I'm not going to move forward and get myself in trouble - there will be more deals. 

[Marian Smith]

@Blake Dailey Your settlement sheet is your proof of cost basis. If you pay under the table, He is passing the capital gains onto you. When you sell.