Throwaway account because I still don't know what the tax repercussions are of this situation.
Long story short, my parents are first generation immigrants and for some reason, growing up, my mom never trusted banks, so she would just stash away cash (as in dollar bills) under her mattress or around the house over the years.
30 years later, I find out that she has about $120k saved up in cash that she wants to give me to put towards buying a house.
I am aware that in the United States, people can give cash gifts up to $14,000 per person per year (the tax exclusion limit) before they have to file a Form 706, but you don't actually need to pay taxes on the gift unless you exceed your lifetime amount of $5.45 million.
So my question is:
How can my parents give me the money (again, emphasizing it's all in cash, denominations unknown) and have me deposit it into a bank without serious red flags or being suspected of money laundering? Do my parents need to provide some kind of proof of how they ended up with so much cash before they gift it to me? Like I said, it's been 30 years, my parents have a single income (my dad), and they have been in the low income bracket the entire time they've been in the US. My dad is planning on retiring in the next couple years and my mom will also be filing for social security within the same time frame. I don't even know if they have any kind of paper trail for this money.
I know typical banks have daily deposit limits of $10k. I know that if you get a money order of $3000 or greater, the vendor is legally obligated to file a suspicious activity report against you. And it seems to be really easy to be suspected/charged of manufacturing spending/structuring when you start making regular (monthly?) deposits of $10k into a bank.
Any advice on how to get all this cash into a bank without raising red flags?
Like I said, my parents are first generation immigrants, and they came to the US with zero money to their name. They managed to raise two kids, send them off to college, and managed to save up all this money to help us as adults. It's their hard earned money and I would hate to see them lose it (or have me get in trouble for accepting it) because of some banking legislation.
Submitted July 27, 2017 at 11:42AM by PFthrowaway8739 http://ift.tt/2uFTinO
