Where to put cash?
01-22-2008, 07:21 AM
#1
Where to put cash?
As an exmaple: A friend of mine owns a garage. The garage only accepts cash or checks for their services. Because of this, a lot of money is able to be swept under the rug so to speak, and not accounted for. If said friend accumulated roughly 100k in cash, it's obvious this can't just be deposited into an account...
How can this money bring in a return? How can this cash be used to make money, rather than collect dust?
How can this money bring in a return? How can this cash be used to make money, rather than collect dust?
01-22-2008, 07:44 AM
#2
Your friend is a piece of trash. He's making the rest of us pay more taxes because of his dishonesty.
01-22-2008, 07:57 AM
#3
Originally Posted by QUIKAG,Jan 22 2008, 08:44 AM
Your friend is a piece of trash. He's making the rest of us pay more taxes because of his dishonesty.
I never really understood the checks/cash only policy of the garage until I was aware of the stockpile of savings. lol
Does anyone have any constructive criticism?
01-22-2008, 08:06 AM
#5
Registered User
lets see... 10k rims... gamble at vegas... buy things in the names of people who have jobs, but be careful not to buy items that are more than the person makes. moms, sisters...
keep in mind, the black market usually charges 20% to wash money to make it clean.
or open another business that takes cash and use that business to wash the money...
keep in mind, the black market usually charges 20% to wash money to make it clean.
or open another business that takes cash and use that business to wash the money...
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01-22-2008, 08:37 AM
#8
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If he's audited they'll find out if he spends it on anything that is somehow taxed. For example, if he buys a 25k 00 MB SL500 cash he'll still have to pay sales tax on it to register it and it'll go back around to him if the IRS looks hard enough [that would take about 45 minutes].
If I was him I'd just figure out a way to pay capital gains tax on it, it's only 15%. Why go through all this trouble to risk jail time and a lousy 15 grand? It's still a little blurry but if you start making the paper trail after* you deposit the funds in a given account, withdraw it as 100% gains after waiting a year and tax it [IRS doesn't usually care if it looks like you are over taxing yourself or being extra 'safe' to avoid problems] at capital gains levels.
All that being said, it's 100 grand, I'd just pay taxes on it if possible. If you were talking 5 million and the difference was a mclaren F1, I could somehow understand why taking the risk is worth it.
If I was him I'd just figure out a way to pay capital gains tax on it, it's only 15%. Why go through all this trouble to risk jail time and a lousy 15 grand? It's still a little blurry but if you start making the paper trail after* you deposit the funds in a given account, withdraw it as 100% gains after waiting a year and tax it [IRS doesn't usually care if it looks like you are over taxing yourself or being extra 'safe' to avoid problems] at capital gains levels.
All that being said, it's 100 grand, I'd just pay taxes on it if possible. If you were talking 5 million and the difference was a mclaren F1, I could somehow understand why taking the risk is worth it.
01-22-2008, 09:07 AM
#10
Originally Posted by sahtt,Jan 22 2008, 09:37 AM
If he's audited they'll find out if he spends it on anything that is somehow taxed. For example, if he buys a 25k 00 MB SL500 cash he'll still have to pay sales tax on it to register it and it'll go back around to him if the IRS looks hard enough [that would take about 45 minutes].
If I was him I'd just figure out a way to pay capital gains tax on it, it's only 15%. Why go through all this trouble to risk jail time and a lousy 15 grand? It's still a little blurry but if you start making the paper trail after* you deposit the funds in a given account, withdraw it as 100% gains after waiting a year and tax it [IRS doesn't usually care if it looks like you are over taxing yourself or being extra 'safe' to avoid problems] at capital gains levels.
All that being said, it's 100 grand, I'd just pay taxes on it if possible. If you were talking 5 million and the difference was a mclaren F1, I could somehow understand why taking the risk is worth it.
If I was him I'd just figure out a way to pay capital gains tax on it, it's only 15%. Why go through all this trouble to risk jail time and a lousy 15 grand? It's still a little blurry but if you start making the paper trail after* you deposit the funds in a given account, withdraw it as 100% gains after waiting a year and tax it [IRS doesn't usually care if it looks like you are over taxing yourself or being extra 'safe' to avoid problems] at capital gains levels.
All that being said, it's 100 grand, I'd just pay taxes on it if possible. If you were talking 5 million and the difference was a mclaren F1, I could somehow understand why taking the risk is worth it.