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Thread: Buying a house in cash

  1. #1
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    Default Buying a house in cash

    I've been dancing for almost 4 years now and been pretty good at saving money. I have been depositing the cash I make, but I never deposited it all because I didn't want to pay a ridiculous amount of taxes. So I have a lot in the bank, but also have a ton not in the bank in safes and safety deposit box and what not.

    I feel unsafe having so much not in the bank so I was thinking since I was ready to buy a house just putting it as a down payment or even in full to pay for house, but I was wondering if this cash payment would automatically get reported to the IRS. And if so in which cases would it or would it not get reported? I was thinking maybe buying directly from owner it might not, but I'm also scared of getting robbed. As in someone taking my cash for house then not actually getting it and not being able to report this. Any advice to avoid this as well?


    Also in the near future I was looking at real estate as an exit plan to transition out of dancing. As in buying homes or apartments and renting them out. I would also prefer to do this in cash to avoid taxes. Some lawyer I met told me I could establish a real estate company and say I got the money to buy the houses from investors to avoid paying taxes on it. Is this true?


    I'm trying to be very careful to avoid taxes and also avoid getting robbed. I do still deposit cash and pay my taxes on what I deposit by the way this is just for what I haven't deposited.

    Does anyone have any knowledge or advice on this situation?

    Thanks

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    Default Re: Buying a house in cash

    PM me
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    Default Re: Buying a house in cash

    If it is "cash" in the sense that it is liquid, i.e. a bank wire to a bank account (which is considered a cash purchase) or a check, no. If you try to pay in actual cash, which no one does, then it will get recorded somewhere, plus you will look weird. The owner has a deed that is registered with the county, and that has to be changed to your name. With a house there is a lot of paperwork and usually a quitclaim deed etc. which records the nature of the payment.

    Unless someone on here is an experienced realtor, I'd ask one that is a friend of a friend. This is a large purchase and too important.
    Where am I? Back on the road, dammit


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    Default Re: Buying a house in cash

    In my jurisdiction a a deed normally recites "ten dollars and other good and valuable consideration" in a cash transaction.

    However:

    https://en.wikipedia.org/wiki/Curren...saction_report
    Last edited by slowpoke; 04-14-2018 at 12:15 PM.

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    Default Re: Buying a house in cash

    Pm me or call 570 798 7051

    I do these kinds of deals everyday

    It’s likely we will have some irs visibility but if you make it a business there are counter balancing forces

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    Default Re: Buying a house in cash

    There you go - SW to the rescue!
    Where am I? Back on the road, dammit


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