Safest way to accept payment in a car sale

[Che70velle]

Cash is all that I accept with large money purchases, and as said above, do not deposit in your account. Ever. I have a home safe, and that's where I deposit it. I'll use the cash sales from toys to finance other toys. I only use cash to play. I use paypal to purchase small items, and then deposit enough of my stash to cover payment.

[dhutton]

Originally Posted by Che70velle

Cash is all that I accept with large money purchases, and as said above, do not deposit in your account. Ever. I have a home safe, and that's where I deposit it. I'll use the cash sales from toys to finance other toys. I only use cash to play. I use paypal to purchase small items, and then deposit enough of my stash to cover payment.

The goal is to get the money into my Schwab account and put it to work thanks to Greg and the Investing 102 thread...

Don

[CamaroMike]

Originally Posted by Rick Dorion

I think a bank has to report a deposit of $10,000 and more(?) I sold a car for cash and made a few deposits over several weeks. Also, had to verify all the bills' watermarks before signing over the car! Anyway, didn't answer your question but congrats on the sale.

It is illegal to do this, they call it staggering? because of money launders do this apparently. In your case its just selling a car so not illegal obviously. As long as there was no gain on the sale then you dont have to pay tax on it (last time I checked)

There really is no "safe" way of doing it. Even a wire transfer can go bad.

The best way I can think of is go to his bank with him and watch them print out a certified check (cashiers check) and deposit it in yours before he can spend the money in his account.

I could go on all day on ways people can screw you over. Hate to say it but cash is the best way and as said before mark the bills and make sure there is texture on Ben's coat! If he has all new 100's then you are good to go! Best of luck -Mike

[V8TV]

I'd also recommend getting a marker to check the bills - my bank gives them to me, but I think you can get them at Walmart also.

[GregWeld]

Don't worry about making a deposit of cash into your account - regardless of whether or not it's in a bank or to an account like Schwab. The IRS is not looking at transactions like that UNLESS you're a drug dealer or cartel.


I make very large transactions on a regular basis and have never ever been asked about any of them. Profit or no profit.

You should be able - however - to show receipts etc for the car and it's parts - and that you sold it if asked down the road (as in 5 years from now).

DO NOT TAKE A CASHIERS CHECK EVEN IF YOU TAKE IT TO THE BANK WITH THE BUYER!! I personally know a guy that did that -- and TWO WEEKS later the bank said the Cashiers Checks was fake and took the funds out of his account! TELLERS are not the fraud department!

[CamaroMike]

Originally Posted by GregWeld

You should be able - however - to show receipts etc for the car and it's parts - and that you sold it if asked down the road (as in 5 years from now).

Would bill of sales be adequate?




I was a teller not long ago and we just enter the stuff in the computer and send it off to be processed, it take a few days to clear funds from checks. If you think about it a check is a piece of paper with writing on it.

[GregWeld]

Originally Posted by CamaroMike

Would bill of sales be adequate?

Bill of sale is proof that you bought or sold... but you still need supporting documents to show "LOSS" or "ADJUSTED COST BASIS" if you need to prove you did not profit from the sale.


So you buy a car for 10K - and get a bill of sale for that transaction.... now you just need receipts to show that you spent an additional 40K on paint and motor and wheels and interior... so your ADJUSTED COST BASIS is now 50K and you sold the car for 45K.

Don't try to write it off as a LOSS --- it's not a commercial transaction if it's just your personal car etc.


All of this is only going to come into play in an audit. An audit would be triggered by making a mistake on your return -- or that you're claiming some large loss etc that isn't ordinary... or maybe they just draw your number. Then they'd only be going over your bank accounts if you're kind of sleazy and they don't like what they're seeing - or your stuff just doesn't "add up".


Typically when I've been audited - they are asking for documentation to back up a single issue... I've never been audited where they asked me to bring in all my paperwork etc. My tax filing last year was 184 PAGES long.... so there's just a few transactions to report etc. So to be asked about ONE specific transaction is quite remarkable. However, I'm as honest as the day is long and have every piece of paper EVER since my very first paycheck and the receipts and bills for my very first electric bill payment. So I'm never afraid of being audited.

[barrrf]

Originally Posted by 66fury

why even put it in the bank? put it aside in a home safe or cookie jar.use it as your day to day money and bank your paycheck or do a monthly deposit spread out over the course of the year.its sad to think that you have to think as if you committed a crime to keep your money in your hands.the irs and the crazy seizure laws are stealing hard working peoples money.

Then the house burns down and BOOM money gone.

[BMR Sales]

Take Cash & Check the Bills

[dhutton]

Thanks for all the advice. Sounds like we will use cash and deposit it directly into my bank account together. Buyer is flying in and planning to drive back home. He lives in Colorado, I hope they don't get more snow next week.

Car is my 66 Corvette factory air coupe. I thought I would drive this car but I have discovered that I prefer upgraded suspensions and LS power etc. Car was too nice to restomod so I am letting it go.

Thanks,
Don