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Discussion Starter · #1 ·
Does anybody know for sure what the maximum amount you can deposit into a bank accout at one time is before the bank has to report the deposit to the IRS? I've heard 10k and 12k. Or is it all a complete myth?
 

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PT Biologist
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It's not a myth and it can vary by the state you are in. Generally it's 10K. Please note however that this is not a banking or money laundering site and any advice you receive here may be suspect.
 

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No myth, its 10k here in this area, anytime I deposit 3k or more if the clerk is not familiar with me they nearly want a blood test and bone marrow sample. :angryfire
 

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They report you at 10k, so if you're getting a large gift from someone, the max can be $9,999.99. I did this about a year ago when my Mom gave us cash from the sale of her house for fixing it up and taking care of it while it was on the market. My stepfather does taxes every year so it pretty with-it on the tax codes.
 

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Discussion Starter · #5 ·
It's not a myth and it can vary by the state you are in. Generally it's 10K. Please note however that this is not a banking or money laundering site and any advice you receive here may be suspect.
Thanks everybody. I was figuring it is 10k. I'll double check officially for sure. Don't worry Murph, no laundering. Just a gift combined with with "mattress money" I was going to deposit. Anybody know much time in between two deposits there has to be before raising some red flags?
 

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Doing two smaller deposits to try and bypass the reporting is also against the law and is actually more suspect than just depositing the money.

My sister is a VP at a bank and passed that info on to me.
 

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PT Biologist
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OK a little research pays off.

Bank Secrecy Act

It can be one transaction of $10,000 or more, or two transactions totaling $10,000 or more that raises flags. One thing I read said they will look for recent deposits over $3000 if they see one from an individual near $10,000. Well just try to stay out of trouble, ok.
 

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Doing two smaller deposits to try and bypass the reporting is also against the law.
Rex, none of this is against any laws, it's simply a matter of what is tracked by the IRS or Federal government, and what is not. I transferred such amounts hundreds of times between stock trading accounts and bank accounts for the past 15 years, electronically and by physical check & deposits and never had any problems from any of it.
 

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Discussion Starter · #10 ·
SCMurphy: That info you found was regarding businesses. I did use that link however to find this:

Gifts and inheritances. Generally, property you receive as a gift, bequest, or inheritance is not included in your income. However, if property you receive this way later produces income such as interest, dividends, or rents, that income is taxable to you. If property is given to a trust and the income from it is paid, credited, or distributed to you, that income is also taxable to you. If the gift, bequest, or inheritance is the income from the property, that income is taxable to you

After further reading I found that any person can MAKE a gift of up to $12k without having to file a gift tax. That is stated in many places on the IRS website. The receiving of gifts seems to be a grey area on the IRS site. The clearest statement from the site is what I copied and pasted above. I'll have to read up on it a little deeper.
 

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Rex, none of this is against any laws, it's simply a matter of what is tracked by the IRS or Federal government, and what is not. I transferred such amounts hundreds of times between stock trading accounts and bank accounts for the past 15 years, electronically and by physical check & deposits and never had any problems from any of it.
Note the wording. Attempting to bypass the reporting laws is against the law. You have established a pattern. So you would not raise a red flag. Some joker coming in off the street and doing multiple $9,000 transactions would.
 

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Rex; if someone is involved with criminal activity then yes, it gives authorities an excuse to tack yet another charge on to your indictment. otherwise, the rest of us law abiding citizens have nothing to worry about. hell, I did such transactions for years, and even had to restate 3 years of income taxes due to a union benefit W2 filing error, yet nobody at the IRS ever bothered me about such transaction activity.
 

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They can't tack on another charge unless it's against the law. So you just proved my point. And like you said....law abiding citizens have nothing to worry about.

What the law really does is help them find people who MIGHT be trying to do some money laundering. And if someone walks into the bank and deposits $5k every day for a month on a new account, or a non-business account or on an account that has normally had very little activity you can bet that you will raise a red flag.
 

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Rex, none of this is against any laws, it's simply a matter of what is tracked by the IRS or Federal government, and what is not. I transferred such amounts hundreds of times between stock trading accounts and bank accounts for the past 15 years, electronically and by physical check & deposits and never had any problems from any of it.
It's not checks and bank to bank transfers that the bank taking the deposit has to report. Those transactions already have a paper trail that can be traced. It's when someone walks in with a large sum of cold hard cash that this requirment kicks in. For cash there isn't much of a paper trail, that's why this law was put into effect, to curb money laundering.

I'm not sure about the dollar amount, but having to much cash (not checks) in your posession can get you in a lot of trouble. I believe you can thank the drug laws for that.

Best thing to do if the money is from a ligit source is to just deposit it all in one deposit and let the bank do it's job of reporting. Otherwise you risk being caught trying avoid the process which would bring a lot more problems your way. If it's not ligit then I have no advice for you except to clean up your act before you land yourself in jail.
 

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I worked at a bank a few years ago and we looked at anything over $10,000 (pretty sure) as a potentially suspicious transaction, especially if it was a cash deposit. Actually, for cash, I think it was around $5000 or $7000. I agree that the law is in place for a reason, obviously to track illegal activity and money laundering. But if some guy just all of a sudden starts depositing $5000 fairly frequently into his/her account, what the hell does the IRS know? Maybe the person just got a new(good) job, or maybe its inheritance, etc. I'm not denying that the AML laws are a good thing. But it seems to be just another way for the government to keep a leash on its citizens. Most people would prefer not to have such invasion.
 

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here in ca its 10000.01. Its not as much used for tax purposes but more for anti-money laundering laws.

well thats at least what they told me at my work. (bank)
 
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