Thoughts On Floating Money Around

[Zee09]

Thoughts and conversation only.
I have a buddy that is a fellow day trader. Because of his wife spending illness
he cashes out his earnings on the stock market and keeps the $$$ at home away from the wife's
prying eyes.
All of this money is taxed as he is a fearful IRS kind of guy.
If that money makes it back into the bank for various reasons, I wonder what implications that can have.
I did the same 12 years ago when I bought a foreclosure, and all of my money was legit too.
Of course, 12 years later things have changed.

 

[MSCH]

as long as he doesn't go past the mandatory reporting rules or the laddering money laundering rules, he should fly under the radar..

he might also need to put his wife on a shorter leash. Banks do allow people to open separate accounts.

 

[Zee09]

as long as he doesn't go past the mandatory reporting rules or the laddering money laundering rules, he should fly under the radar..

he might also need to put his wife on a shorter leash. Banks do allow people to open separate accounts.

His wife can't be controlled. Seriously bad............. He has no choice, or they will be out on the street.

 

[MSCH]

as long as he doesn't go past the mandatory reporting rules or the laddering money laundering rules, he should fly under the radar..

he might also need to put his wife on a shorter leash. Banks do allow people to open separate accounts.

His wife can't be controlled. Seriously bad............. He has no choice, or they will be out on the street.

he probably ought to divorce her sooner rather than later if she can't get her spending under control.
main reason I was able to retire early is because I controlled the money and put her on allowance
because left to their own devices them overspenders will sink and take everybody with them.
If he doesn't do that he might as well lose everything now instead of waiting.

 

[Zee09]

he probably ought to divorce her sooner rather than later if she can't get her spending under control.
main reason I was able to retire early is because I controlled the money and put her on allowance
because left to their own devices them overspenders will sink and take everybody with them.
If he doesn't do that he might as well lose everything now instead of waiting.

Yup...but he has been married 40 years and his plan is working so far.
She inherited $600K and it was gone in 3 months with nothing in return- not even a car or home repairs.
She gave it away to losers..

EDIT- wait I'm a loser and I got nothing......... wow!

 

[Pablo]

My buddy divorced the woman

It was the only way

The tax thing is wholly different. IRS knows he cashed out so I don’t get it??

 

[Vil_Riker]

Stay under $10,000 per day in deposits at the bank and it will not be reported. And don't go every day depositing $9,999 as it will raise suspicions by the bank and get him reported.

People are taking money out of the banks, why is he putting it back in?

 

[Zee09]

My buddy divorced the woman

It was the only way

The tax thing is wholly different. IRS knows he cashed out so I don’t get it??

Just wondering.
Lets say he buys some property. A couple years later he throws $200K back in the bank for settlement or something.
Just wondering.

Also he is taking a few grand here and there from his stock account not a big lump sums

 

[MSCH]

Yup...but he has been married 40 years and his plan is working so far.
She inherited $600K and it was gone in 3 months with nothing in return- not even a car or home repairs.
She gave it away to losers..

well, he is pretty well done in then, isn't he.. it sounds like it is time for some tough love or he is going to sink like the Titanic. smart if he just distances himself from her financially as well as he can, takes away her credit cards, closes all joint accounts with both names on them and opens his own, gets a PO Box so he can make sure he has his own stuff showing up and just generally live his financial life separate from him.

Some of my previous financial problems from years back were due to my wife having a connection to her families business and the financial strings it always entailed and I didn't have any financial success until I cut all those strings..

 

[kschachn]

Thoughts and conversation only.
I have a buddy that is a fellow day trader. Because of his wife spending illness
he cashes out his earnings on the stock market and keeps the $$$ at home away from the wife's
prying eyes.
All of this money is taxed as he is a fearful IRS kind of guy.
If that money makes it back into the bank for various reasons, I wonder what implications that can have.
I did the same 12 years ago when I bought a foreclosure, and all of my money was legit too.
Of course, 12 years later things have changed.

So there is no 1099 issued on the sale?

 

[MSCH]

Just wondering.
Lets say he buys some property. A couple years later he throws $200K back in the bank for settlement or something.
Just wondering.

Also he is taking a few grand here and there from his stock account not a big lump sums

assuming he is moving money electronically, there is a record.. which may or may not be reportable to the IRS and might only come into play if court type stuff gets involved where subpoenas are issued for all that sort of thing.. generally you can't hide financial transactions anymore, not from someone who knows what they are looking for

 

[Zee09]

So there is no 1099 issued on the sale?

Yes, all taxes were and are paid by the book.
But that could be many years prior, and I suspect if he needs a bank, he would be able to document it, but I suspect the bank
would report it anyway?? Not sure how that would go down.

 

[Zee09]

I see my own accountant next week about taxes and just for the sake of knowing I will ask her.
What I was getting at is if you walk in and deposit a bag of money like $200K I'm sure you are getting reported.
They have no idea where that money came from.

 

[ARCOgraphite]

My wife and I have always had separate accounts - even at different banks - to avoid the co-mingling of the green and the inherent money arguments.

Now she is complaining of poverty since she retired in May with 1/3 the income
I told her she is good, but please do a budget spreadsheet now your funds are "limited".
If you need $$$ please let me know in advance so I can direct you where to withdraw any extra needed funds beyond the monthly social security disbursement- mainly to keep the federal tax bill in check.

Can't he just set up an undisclosed brokerage account to do his day trading? Also happy tax day with those STCG he is racking up!

I think they need to go to counseling NOW rather than play "hide the money"

 

[Zee09]

My wife and I have always had separate accounts - even at different banks - to avoid the co-mingling of the green and the inherent money arguments.

Now she is complaining of poverty since she retired in May with 1/3 the income
I told her she is good, but please do a budget spreadsheet now your funds are "limited".
If you need $$$ please let me know in advance so I can direct you where to withdraw any extra needed funds beyond the monthly social security disbursement- mainly to keep the federal tax bill in check.

Can't he just set up an undisclosed brokerage account to do his day trading? Also happy tax day with those STCG he is racking up!

I think they need to go to counseling NOW rather than play "hide the money"

Counseling seldom works. They went and as soon as the tables turned to her activities it was over. lol
That story plays out often.

 

[MSCH]

Yes, all taxes were and are paid by the book.
But that could be many years prior, and I suspect if he needs a bank, he would be able to document it, but I suspect the bank
would report it anyway?? Not sure of that would go down.

banks report CASH transactions over 10k and also report multiple less than 10k transactions if they suspect laddering but as far as I know they don't report electronic transactions.. We kinda work on the honor system here, supposedly the recipient has to report taxable stuff to the IRS. so if he is legal, he is legal. but there are other ways around this stuff depending on how unscrupulous you need to be..

I'll give you one because one of my extended family members (FLA construction business) was doing it because he didn't file at all for about 7 years.
he'd get a large check from a building project he did, he had a deal with a check cashing store owner where they'd cash the checks and pay him cash and none of this **** got reported or ever went thru family members bank.. he finally did get caught when a steady customer he worked for got into serious tax problems and had one of those deep and hard financial probes done and they started looking into this other guys transactions and flagged my extended family member and tracked him down.. its hard to hide the stuff anymore.

about the only other thing a person can do is the safe deposit box routine.. which the aforementioned guy I am talking about did where the Safe Deposit box was in someone elses name... with the caveat you better trust the other person alot if you go that route. LOL.

 

[Zee09]

My local Ford dealer wants no cash at all on a car sale.
Checks only or financing.

 

[walterjay]

My local Ford dealer wants no cash at all on a car sale.
Checks only or financing.

Casn was once king. Oh how times have changed.

 

[Zee09]

@MSCH
The deal is I leave my earnings in my brokerage account to get my 5% interest.
But he takes it out because his wife daily watches the screen on his platform. I'd just get a second platform.
So, he sends it to the bank and then he withdrawals from the bank and takes it home.
Thats fine and legal.. But if he ever needs to re-deposit it-that's what I would worry about.

 

[Zee09]

Casn was once king. Oh how times have changed.

I haven't received cash in years.............. zippo
I don't even get money orders