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Reportable to IRS?

 
 
Reply Mon 7 Mar, 2016 03:44 pm
If I buy a $50,000 new automobile with cash (actual currency) from a dealer is the dealer required to report the transaction to the IRS?
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Type: Question • Score: 3 • Views: 1,635 • Replies: 5
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jespah
 
  1  
Reply Mon 7 Mar, 2016 05:24 pm
@seminole74,
I don't see any reason why not. It's a transaction; it kind of doesn't matter how the payment is made.
roger
 
  1  
Reply Mon 7 Mar, 2016 05:40 pm
@jespah,
That's my best guess, but I didn't want to state it as a fact, either.
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PUNKEY
 
  2  
Reply Tue 8 Mar, 2016 06:30 am
My friend's son works as a car dealer and yes, cash transactions of that level do need to be reported to the IRS. Who has that kind of cash laying around except drug dealers and criminals?

See: https://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Report-of-Cash-Payments-Over-10000-Received-in-a-Trade-or-Business-Motor-Vehicle-Dealership-QAs
Linkat
 
  1  
Reply Tue 8 Mar, 2016 12:41 pm
@seminole74,
Yes it is a sale and typically there is sales tax involved on the sale of a vehicle. This would also be recorded in their books (accounting). There would be a complete trail of this vehicle when it came into the dealership as inventory while it was held and when it left. Along with any other transactions involving it - upgrades, etc. Not to mention every vehicle has an individual VIN number.

Even the high cost doesn't matter - think of a grocery store -- you go in you buy a pack of gum and pay cash. All this gets recorded via their books - think the item gets scanned when it comes in as inventory, costs get recorded, etc. and the opposite as it is scanned gets checked out. So if a buck in cash is going to get reported to the IRS, the $50k transaction certainly will not slip through the cracks.

Unless you are working with a shady dealership and then you all are likely to get into trouble.
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seminole74
 
  1  
Reply Tue 8 Mar, 2016 05:23 pm
@PUNKEY,
Punkey,

Hey, I love ya (after all, yer on the same forum as my goddess jespah, how could I NOT love ya?) But have you considered the possibility that I'm just an old fashioned guy that still likes old fashioned transactions? Banks are REQUIRED to report big cash transactions and that totalitarian law can be enforced because all banks must have a federal charter with all the "big brother" implications thereof. My question is: Are "big ticket" retailers bound by the same reporting requirements?
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