Cash vs. Check

[xlr8]

Hello All!

I wanted to get your thoughts about the buying power of cash vs. paying by check. I'm not talking about buying a project car, or some parts. Let's (for the sake of argument) say the price of what we're buying (or what you're selling) is 100k. Given that capitol gains tax is currently 23%, and there's talk of it going higher, what kind of "discount" can we realistically expect to get for paying cash?

So you're selling a car (it doesn't matter what it is - MoPar, Ferrari, whatever) and two folks show up at your door. One has cash, one has a check. For the sake of argument, let's assume both the check and the cash are genuine. Who gets the car? If you take a check and go skipping down to the bank with your new found wealth to deposit into your savings account, a SAR (Suspicious Activity Report) will be generated by the bank and questions will be asked. On the other hand, if you get a pile of cash and deposit it (in varying amounts of less than 10K) over a period of several weeks there's no paper trail of the transaction and thus no questions asked.

I know how I feel about the transaction but I'm curious how others feel. Of course cash is king but what discount would you expect? What do you think?

 

[66 Sat]

I'd give upto 10% discount for cash - I hate the way the banks and governments are tracking everything, so any way around this is worthwhile to me.
If this cashless society ever comes in fully (and it seems to be heading that way), they will track every little thing you buy. The implications are huge, they'll be scrutinising every purchase to try to gain something e.g. you crash your car but bought beer earlier so they'll assume your drunk etc.
The future is all about control.

 

[hunt2elk]

Cash is king for me. But even if limiting your deposits to under 10K and you get audited, big brother will easily find the transactions and ask where the money came from. Ask me how I know that.

 

[F4R/T]

Bastards want to know everything because lord knows they hate the competing for our money or stealing it I should say.. Big government is bad government!

 

[xlr8]

Cash is king for me. But even if limiting your deposits to under 10K and you get audited, big brother will easily find the transactions and ask where the money came from. Ask me how I know that.

But is it not far easier to explain a $6,500 deposit as opposed to 100K? While not goofing around with cars, I'm a coin op guy (pinballs, arcade games, jukeboxes, etc.). It's amazing how much some of that stuff is worth. The cash flowing around a coin op show is mind boggling. No one takes checks, everyone is armed.

 

[F4R/T]

My kind of place to deal no bs just strictly business !!

 

[hunt2elk]

But is it not far easier to explain a $6,500 deposit as opposed to 100K? While not goofing around with cars, I'm a coin op guy (pinballs, arcade games, jukeboxes, etc.). It's amazing how much some of that stuff is worth. The cash flowing around a coin op show is mind boggling. No one takes checks, everyone is armed.

Yes, but they will treat it as 100% income and you will owe tax on the whole amount, unless you have proof of every penny you stuck into the sold car. Safer in my mind to throw the cash into a safety deposit box or a safe. Use the money for non traceable stuff. Groceries, going out to eat, home furnishings, misc. That's just me, I don't ever care to go through another audit.....

 

[65-440]

Cash....goes right in the safe

 

[xlr8]

I agree. I still cash my paycheck every week (no direct deposit). My wife thinks I'm nuts (and she could be right).

I'm not trying to make this post anti bank, anti government or anti Big Brother, especially on Memorial Day (Thanks to ALL who have served. Men, Women, black, white... Everyone, but that's another thread).

Back on topic, who gets the car? The cash guy or the check guy and how much of a discount would you allow (if any) to the cash guy?

Thanks to 66 SAT for throwing out the first number of 10%. What does everyone else think? 10%? 12? 15? 18? 20?

 

[alfaitalia]

We cant take much cash here as a business ....legally at least..... beyond a certain amount. Its not about tracking everything you spend....who cares unless its something illegal or you avoid paying your taxes . Its more about the increasing numbers that work for cash where the tax man does not get his share. Those folks are robbing the rest of us. Even workmen that come to do a job at your house. You CAN pay them cash....but they MUST take card or cheque (spelt right!) if you want to pay that way. In the RV and car sales world I legally cant take more than about £10,000 in cash on any single transaction. I try to avoid it at....as where they are trying to minimize cash usage the banks now charge us a fee for banking cash! Never thought Id see the day that happened. Personally I use very little cash....cant be bothered to go to the cash machine to get it! Also you get the extra cover from the card issuer if you purchase something and it breaks etc...the card company will go after the seller for you and refund you if they wont. This only works on purchases over £100....you might have the same thing there.

 

[AR67GTX]

I don’t see the problem with depositing cash for an over $10,000 sell if it’s all legitimate and you are a law abiding person. Let em waste their time with the paperwork - you have a bill of sale, right? I took a big slug of cash for a fairly valuable used car sell last year, put it in the bank, told the pm what it was from, wrote a check a couple days later for the purchase of a new car. No consequences.

 

[dadsbee]

Who takes cash to the bank to make 0.05% in a savings account. It goes in the ammo box that's stored among-st the junk..

 

[1967coronet]

Hello All!

I wanted to get your thoughts about the buying power of cash vs. paying by check. I'm not talking about buying a project car, or some parts. Let's (for the sake of argument) say the price of what we're buying (or what you're selling) is 100k. Given that capitol gains tax is currently 23%, and there's talk of it going higher, what kind of "discount" can we realistically expect to get for paying cash?

So you're selling a car (it doesn't matter what it is - MoPar, Ferrari, whatever) and two folks show up at your door. One has cash, one has a check. For the sake of argument, let's assume both the check and the cash are genuine. Who gets the car? If you take a check and go skipping down to the bank with your new found wealth to deposit into your savings account, a SAR (Suspicious Activity Report) will be generated by the bank and questions will be asked. On the other hand, if you get a pile of cash and deposit it (in varying amounts of less than 10K) over a period of several weeks there's no paper trail of the transaction and thus no questions asked.

I know how I feel about the transaction but I'm curious how others feel. Of course cash is king but what discount would you expect? What do you think?

1st to answer the question..
Cash.
But with that said do not ever think multi small deposits will go unnoticed.
The feds know how much each of us have in the bank or invested at any givin time.
The web , internet , ect is their tool.
Also if your buyer withdraws a large sum
( over 10k ) the feds will be checking in with him.
Keeping it stashed is ok but dont ever think nobody knows you have it.

 

[Bighouse]

Or you don’t use a debit card for gas, groceries or pizza for the next decade.

which is why “they” want a cashless society.

 

[dadsbee]

What's a debit card....

 

[Bighouse]

What's a debit card....

it’s a method for “them” to track everything you buy, and your patterns!

 

[Fran Blacker]

A women in Cheshire CT. was going through her parents home and found $330,000. Over a period of time she deposited it in the bank in under $10,000 at a time. (smurfing) Well the IRS came calling, she paid a large fine and was sentenced to 3 years in jail. Bet a do gooder teller reported her and got a reward.

 

[eldubb440]

fok a discount for cash........ should be a surcharge for paying by check

 

[Bighouse]

A women in Cheshire CT. was going through her parents home and found $330,000. Over a period of time she deposited it in the bank in under $10,000 at a time. (smurfing) Well the IRS came calling, she paid a large fine and was sentenced to 3 years in jail. Bet a do gooder teller reported her and got a reward.

Ive heard that under 10k doesn’t matter- even 9,8,7. It’s anytime a pattern is detected.

There was talk the other day about legislation coming on monitoring bank accounts on a fed level.

 

[Cranky]

The best way to get around the SAR is not to deposit anything but put it in your private safe and then spend it little by little on big ticket items etc. So, a newbie coming here to shake us down.....are you an IRS spy?