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Learning, Sharing, and Teaching => Real Estate and Landlording => Topic started by: humbleMouse on June 15, 2015, 01:26:41 PM

Title: Buying a house with cash with no w2 income?
Post by: humbleMouse on June 15, 2015, 01:26:41 PM

Hey there educated people of MMM!  I have a question that I have not seen asked here before. 

If you buy a house with cash, but you have no w2 income, is that an issue for the IRS?  As in, if I were to buy a house with 100k cash, but I do not have any document-able income sources, do I have to claim that purchase somewhere on documents that get seen by the IRS?  And will they care?

Title: Re: Buying a house with cash with no w2 income?
Post by: GizmoTX on June 15, 2015, 02:38:28 PM

Only if your cash is illegal. If you have a cash business, you'd better be reporting its income. Or it better be an inheritance, insurance payout, or settlement, but you'd have documentation for any of those.

Title: Re: Buying a house with cash with no w2 income?
Post by: Bicycle_B on June 15, 2015, 05:06:16 PM

Were you to sneak that cash into the bank account in increments of less than $10,000 to try "hiding" it as you built up the $100,000 it might be viewed as structuring (see Denny Hastert)...

Title: Re: Buying a house with cash with no w2 income?
Post by: ShoulderThingThatGoesUp on June 15, 2015, 05:29:32 PM

Actual bills?

Don't actually answer that. If you actually have that much in bills you have fucked up somewhere. Unfortunately even if you got it legally the government is likely to assume it's drug money and steal it. I don't know how to get rid of that much cash other than to walk into a bank with a lot of documentation.

If you already have it in a bank, no, I don't think that would be a problem.