My grandma is also a child of the depression and hides money all over the place. We have found stacks of money in the strangest places (inside tea kettles, between pages of books, in her garage in a box that once held nails). She is 91. I am worried when she passes we will accidentally throw some out because there is no rhyme or reason.
Your sister may be facing some tax implications if she deposits that amount of money into her own bank account. It is income and the banking system has checks and balances in place to report deposits like this to the IRS. Would this cash be deposited into your grandmother’s bank account? I’d consult an accountant as to how best to transfer this cash into the banking system. I do like the idea of simply using the 1970’s cash to pay at the doctor’s office.
Good point. I'll have my mom email their banker to find out if there is anything she needs to consider.
archiethedragon , I get your point but I don't think that will be called into question. PDQ My grandmother is pretty wealthy so there are other people outside the family regularly involved with her finances. This amount is minor for her.
so over $15,000 is taxable - could I deposit $15,000 cash/year w/o taxes? we have a similar situation - but the amount is in the 6 figures... (and no pickle jar )
Yes, 15K single/ 30K couple per year not taxable. But I am not qualified to answer how best to avoid taxes on 6 figures.
Post by InBetweenDays on Apr 20, 2021 10:43:04 GMT -5
A few things about the gift tax. The tax implication is on the gift giver, not the recipient. Your sister shouldn't have any tax issues and as I understand it she does not need to report it as income. Your grandma should file it on her taxes IF she gifts more than $15,000 to your sister (or any one person) (but as tacokick noted even if she gifts over $15,000 there shouldn't be tax implications since the lifetime exemption is so high).
Also, if your grandma pays for your sister's medical expenses directly then it shouldn't count against her gifting limit. So she could pay for your sister's treatment, then still gift her $15,000 and not exceed the yearly exemption limit.
Your sister may be facing some tax implications if she deposits that amount of money into her own bank account. It is income and the banking system has checks and balances in place to report deposits like this to the IRS. Would this cash be deposited into your grandmother’s bank account? I’d consult an accountant as to how best to transfer this cash into the banking system. I do like the idea of simply using the 1970’s cash to pay at the doctor’s office.
Not an accountant, but I think you can gift upto 15K tax free to another family member.
so over $15,000 is taxable - could I deposit $15,000 cash/year w/o taxes? we have a similar situation - but the amount is in the 6 figures... (and no pickle jar )
Yes, 15K single/ 30K couple per year not taxable. But I am not qualified to answer how best to avoid taxes on 6 figures.
Gifts after 15k are not taxable unless you’ve hit the life time limit of 11million. The giver does need to fill out a additional tax form if gifting over the annual exclusion but it is not taxed for the giver or gift recipient.
Also don’t take tax advice from me or others on a messaging board (especially for six figure gifts) but this is one of the most commonly misrepresentative tax thing I see on the internet.
“With sorrow—for this Court, but more, for the many millions of American women who have today lost a fundamental constitutional protection—we dissent,”
Did she bury any coins too? (I'm a numismatist, I have to ask, coins are more likely to have a higher increased value relative to the face value than bills).
You are?! That's so cool. My FIL has an ancient coin collection that we've been talking about having appraised, so I've been reading about/researching numismatology recently. It's fascinating, and I've been so curious how one develops a background and skill in this area. You must see a lot of cool things.
Yes, 15K single/ 30K couple per year not taxable. But I am not qualified to answer how best to avoid taxes on 6 figures.
Gifts after 15k are not taxable unless you’ve hit the life time limit of 11million. The giver does need to fill out a additional tax form if gifting over the annual exclusion but it is not taxed for the giver or gift recipient.
Also don’t take tax advice from me or others on a messaging board (especially for six figure gifts) but this is one of the most commonly misrepresentative tax thing I see on the internet.
I see this all the time too! Reporting something to the IRS does not automatically mean it is taxable. I think that’s the confusing part for people—why tell them if there isn’t tax involved?
They will track it but unless it hits 11 million no one is paying taxes on it.
so over $15,000 is taxable - could I deposit $15,000 cash/year w/o taxes? we have a similar situation - but the amount is in the 6 figures... (and no pickle jar )
Yes, 15K single/ 30K couple per year not taxable. But I am not qualified to answer how best to avoid taxes on 6 figures.
No gift is taxable, even if it is over $15/30k a year until you hit over 11 million. You have to report large gifts but no one is taxed until then.
Did she bury any coins too? (I'm a numismatist, I have to ask, coins are more likely to have a higher increased value relative to the face value than bills).
You are?! That's so cool. My FIL has an ancient coin collection that we've been talking about having appraised, so I've been reading about/researching numismatology recently. It's fascinating, and I've been so curious how one develops a background and skill in this area. You must see a lot of cool things.
Numismatics has a broad definition - I'm not a professional, just a collector (ancient coins are outside my sphere). You pretty much just start with an interest in coins and let it go from there. I started as a kid, lost interest, and picked it up again about a year ago. It is so different than it was pre-internet- so much easier to buy, sell, connect with people, share information. At the same time, it's a hobby with a shrinking base which is a shame. I attend a monthly show and 90% of the sellers and attendees are men over 60.
Yes, 15K single/ 30K couple per year not taxable. But I am not qualified to answer how best to avoid taxes on 6 figures.
Gifts after 15k are not taxable unless you’ve hit the life time limit of 11million. The giver does need to fill out a additional tax form if gifting over the annual exclusion but it is not taxed for the giver or gift recipient.
Also don’t take tax advice from me or others on a messaging board (especially for six figure gifts) but this is one of the most commonly misrepresentative tax thing I see on the internet.
Thanks - and definitely not taking any tax advice from GBCN. no offense. This does give me things to think about and ask our financial planner/banker.
My grandma is also a child of the depression and hides money all over the place. We have found stacks of money in the strangest places (inside tea kettles, between pages of books, in her garage in a box that once held nails). She is 91. I am worried when she passes we will accidentally throw some out because there is no rhyme or reason.
My grandma would have been 109 this year. She kept cash in an enema box in the bathroom closet. Starting to think I should do the same.
Agree - my mom's BF's mom had cash in cans in the cupboard, stashed into the hems of curtains, etc.... it was exhausting for them when cleaning out the house to try to check every nook and cranny you wouldn't normally check. They had the same worry as you rikki
Did she bury any coins too? (I'm a numismatist, I have to ask, coins are more likely to have a higher increased value relative to the face value than bills).
Sorry to hijack, but my dad gave me and my brother a bunch of proof sets of my grandpa's after he passed. Are these even worth spending time to see if they're worth anything?
Did she bury any coins too? (I'm a numismatist, I have to ask, coins are more likely to have a higher increased value relative to the face value than bills).
Sorry to hijack, but my dad gave me and my brother a bunch of proof sets of my grandpa's after he passed. Are these even worth spending time to see if they're worth anything?
You are?! That's so cool. My FIL has an ancient coin collection that we've been talking about having appraised, so I've been reading about/researching numismatology recently. It's fascinating, and I've been so curious how one develops a background and skill in this area. You must see a lot of cool things.
Numismatics has a broad definition - I'm not a professional, just a collector (ancient coins are outside my sphere). You pretty much just start with an interest in coins and let it go from there. I started as a kid, lost interest, and picked it up again about a year ago. It is so different than it was pre-internet- so much easier to buy, sell, connect with people, share information. At the same time, it's a hobby with a shrinking base which is a shame. I attend a monthly show and 90% of the sellers and attendees are men over 60.
Can I also PM you? I'd like to learn more about this hobby. I started collecting small shiny things right before the the pandemic. While the item I collect has quite the following, I would like to know how it works for other hobbyists and maybe pivot to something else.
Numismatics has a broad definition - I'm not a professional, just a collector (ancient coins are outside my sphere). You pretty much just start with an interest in coins and let it go from there. I started as a kid, lost interest, and picked it up again about a year ago. It is so different than it was pre-internet- so much easier to buy, sell, connect with people, share information. At the same time, it's a hobby with a shrinking base which is a shame. I attend a monthly show and 90% of the sellers and attendees are men over 60.
Can I also PM you? I'd like to learn more about this hobby. I started collecting small shiny things right before the the pandemic. While the item I collect has quite the following, I would like to know how it works for other hobbyists and maybe pivot to something else.
Sure, go ahead.
Anyone else that has questions about coins, feel free to PM me instead of taking over this thread.
Just take it to deposit it. It’s really not a big deal. Bank will file a CTR report since it’s over 10k. No big whoop.
PLEASE don’t give this cash to the dr office, for several reasons. One, besides a CTR they could have a SAR filed against them. Large cash deposits from a dr office could be considered suspicious. They will not know it a SAR is filed against them. Next, it’s a security concern. Likely a receptionist, or assistant runs their deposits. If even just one bad employee tells a friend, that person running the deposit is at risk of being robbed en route to the bank. And finally, most business accounts have cash deposit caps and fees. So usually they get the first 5-10k in cash deposits free a month. Then they pay a fee for everything in excess of that. Usually a %. Not really your problem, but still a burden to them.
Just take it to deposit it. It’s really not a big deal. Bank will file a CTR report since it’s over 10k. No big whoop.
PLEASE don’t give this cash to the dr office, for several reasons. One, besides a CTR they could have a SAR filed against them. Large cash deposits from a dr office could be considered suspicious. They will not know it a SAR is filed against them. Next, it’s a security concern. Likely a receptionist, or assistant runs their deposits. If even just one bad employee tells a friend, that person running the deposit is at risk of being robbed en route to the bank. And finally, most business accounts have cash deposit caps and fees. So usually they get the first 5-10k in cash deposits free a month. Then they pay a fee for everything in excess of that. Usually a %. Not really your problem, but still a burden to them.
Is it only doctor offices that have to abide by these rules and pay the percentage of cash deposits above a certain amount?
Just take it to deposit it. It’s really not a big deal. Bank will file a CTR report since it’s over 10k. No big whoop.
PLEASE don’t give this cash to the dr office, for several reasons. One, besides a CTR they could have a SAR filed against them. Large cash deposits from a dr office could be considered suspicious. They will not know it a SAR is filed against them. Next, it’s a security concern. Likely a receptionist, or assistant runs their deposits. If even just one bad employee tells a friend, that person running the deposit is at risk of being robbed en route to the bank. And finally, most business accounts have cash deposit caps and fees. So usually they get the first 5-10k in cash deposits free a month. Then they pay a fee for everything in excess of that. Usually a %. Not really your problem, but still a burden to them.
Is it only doctor offices that have to abide by these rules and pay the percentage of cash deposits above a certain amount?
Nope, any kind of business that has a traditional business account. Not all banks do that, but most do.
My H's grandparents kept money in the freezer in case of a house fire - that's not nearly as fun as a pickle jar.
My grandmother kept hers in a cream cheese container in the fridge snd she called it her “cold cash” 🤣
My uncle threw it away once because the expiration date was so so long ago. Luckily my aunt found out before the trash came so he was able to dig through it to find it.
Post by cheeseplease on Apr 23, 2021 8:21:05 GMT -5
This reminds me of the time years ago when I worked retail. I broke open a new roll of nickels and they were all buffalo head nickels. I have them somewhere around here.
Just take it to deposit it. It’s really not a big deal. Bank will file a CTR report since it’s over 10k. No big whoop.
PLEASE don’t give this cash to the dr office, for several reasons. One, besides a CTR they could have a SAR filed against them. Large cash deposits from a dr office could be considered suspicious. They will not know it a SAR is filed against them. Next, it’s a security concern. Likely a receptionist, or assistant runs their deposits. If even just one bad employee tells a friend, that person running the deposit is at risk of being robbed en route to the bank. And finally, most business accounts have cash deposit caps and fees. So usually they get the first 5-10k in cash deposits free a month. Then they pay a fee for everything in excess of that. Usually a %. Not really your problem, but still a burden to them.
I just checked and there is no fee for the first $20K I deposit, and then it is $0.30 per $100. That is less than the fee to process a similar credit card payment, but I do have to pay someone to count the cash so I guess it averages out to be the same. My business doesn't collect more than $20K in cash in a month, but it could happen if we had a few big cases where patients prepaid and did so with cash.
Just take it to deposit it. It’s really not a big deal. Bank will file a CTR report since it’s over 10k. No big whoop.
PLEASE don’t give this cash to the dr office, for several reasons. One, besides a CTR they could have a SAR filed against them. Large cash deposits from a dr office could be considered suspicious. They will not know it a SAR is filed against them. Next, it’s a security concern. Likely a receptionist, or assistant runs their deposits. If even just one bad employee tells a friend, that person running the deposit is at risk of being robbed en route to the bank. And finally, most business accounts have cash deposit caps and fees. So usually they get the first 5-10k in cash deposits free a month. Then they pay a fee for everything in excess of that. Usually a %. Not really your problem, but still a burden to them.
I just checked and there is no fee for the first $20K I deposit, and then it is $0.30 per $100. That is less than the fee to process a similar credit card payment, but I do have to pay someone to count the cash so I guess it averages out to be the same. My business doesn't collect more than $20K in cash in a month, but it could happen if we had a few big cases where patients prepaid and did so with cash.
What is an SAR filed against my office?
It's a Suspicious Activity Report filed with the Financial Crimes Enforcement Network, in compliance with the Bank Secrecy Act. It's designed to help the government identify money laundering and similar financial crimes that may also be tied to things like drugs and human trafficking.
Just take it to deposit it. It’s really not a big deal. Bank will file a CTR report since it’s over 10k. No big whoop.
PLEASE don’t give this cash to the dr office, for several reasons. One, besides a CTR they could have a SAR filed against them. Large cash deposits from a dr office could be considered suspicious. They will not know it a SAR is filed against them. Next, it’s a security concern. Likely a receptionist, or assistant runs their deposits. If even just one bad employee tells a friend, that person running the deposit is at risk of being robbed en route to the bank. And finally, most business accounts have cash deposit caps and fees. So usually they get the first 5-10k in cash deposits free a month. Then they pay a fee for everything in excess of that. Usually a %. Not really your problem, but still a burden to them.
I just checked and there is no fee for the first $20K I deposit, and then it is $0.30 per $100. That is less than the fee to process a similar credit card payment, but I do have to pay someone to count the cash so I guess it averages out to be the same. My business doesn't collect more than $20K in cash in a month, but it could happen if we had a few big cases where patients prepaid and did so with cash.
What is an SAR filed against my office?
A SAR is a suspicious activity report. There is no really threshold for what qualifies, it’s very subjective. When I worked at Chase, we were encouraged to file a SAR for anything we thought was odd. So for example, if your business was selling antiques in eBay and you came in to deposit 3k in cash, that could be suspicious. But if you sell antique furniture at a flea market, than large sums of cash not suspicious. Try to structure your deposits to just below 10k, suspicious. A bank is not allowed to tell someone that a SAR has been filed.