Getting a loan on a home... HELP!

Also don't run to the bank and deposit anything over $9,998.00 the bank will report it to the Feds. Originally Posted by mojojo213

My understanding is that the reporting limit was dropped to $5000.00.

I know this will anger some of the ladies here, but it needs to be said. There are a few ladies that look at the entire picture and plan their lives accordingly. This includes filing taxes, etc. This may even be a large percentage of ladies, I do not know, and I ain't gonna take a poll.

However, there is a large segment of the provider population that does not approach this from the big picture and rather look to the short term only. In some cases, they enter this lifestyle thinking this will be a very short lived career, something to keep them afloat until they get their next big break. Others have entered this lifestyle knowing, or have after time realized, that this lifestyle will be a long term career choice. (I would say anything over 4-6 months makes this longterm.)

This segment does not plan, they just float along where life takes them. They live almost literally session to session. They are frequently the ladies needing a handout to make the rent, to pay for the rainy day. They may sport the nicest acrylic nails, have beautiful hair courtesy of their latest extensions, party constantly, and sadly have some of those lifestyle problems that we sweep under the rug and ignore here because of the rules. But they don't have any savings, and is some cases don't where the rent money will be coming from until the last day of the month when they eat ramen noodles and beg guys in chat to see them.

It is a difficult situation for ladies in this chosen career. How do they create a "real world facade" to launder their income stream? Is it better to not report anything, and perhaps fly under an IRS radar or other radars? Or do you try to find a legitimate self-employment scheme for the public persona?

Between the war on terror and the tightening of rules from the mortgage crisis, financial records are much more intimately attached to our lives. Some jobs require credit checks. What would be the result for a provider who has had multiple car loans fall apart, who lives in a cash world, never establishing a good credit score?

A friend of mine who works printing money recently told me he was scared he would lose his job. Some bad decisions on his part, a pending divorce, and a house that he was very upside down on was making bankruptcy a real possibility. However, filing for bankruptcy would result in his termination from his job.

I am not a CPA, not a financial planner. But it is important that providers of any age think about these things from an early age. When I was 20, I bought my first car. Had cash in the bank, but took out a loan to begin establishing credit. Last I checked, despite a very rocky career since 9/11 with multiple job changes and now running my own business, my credit score is in the low 800s. I also have 6 months of income in savings to deal with a rainy day. It makes life a lot easier on me.

I am always pleasantly surprised by the ladies who do plan things out. They have savings, they have an exit plan. Sure, the economy, the stock market may require adjustments to the plan, but they have a plan to adjust. A lot of the young ladies, and even some of the older ladies, could learn a lot from a class taught by the gals who have been there, done that.

Oh yea, the ladies who have a plan, usualy are much more organized. You rarely see them being reported for NCNS or cancellations. The skills they used to do their financial plans they also use in their day-to-day lives.

My understanding is that the reporting limit was dropped to $5000.00. Originally Posted by tigercat

The reporting limit fluctuates - it is based on an algorithm. If you never have any large deposits and walk in with $2000.00 in cash, it may trigger the form . . . there is really no way to tell. I have seen people that routinely make large deposits fly $20,000.00 in and out of their bank accounts and they have the information on file with the bank and the bank submits their information electronically to the IRS, they never even slow down the customer in the teller line (or the drive through) and I have a friend that works in a bank and for some people with high net worth, the IRS can suspend reporting requirements and audit those people differently if they choose. I have also seen a report triggered by someone cashing a GOVERNMENT check for $1,420.00. The IRS is getting pretty crazy in their requirements, and it has a lot to do with the office of Homeland Security also, and in some instances, ICE.

The "hard rule" as I understand it now, is that at $5,000.00, it triggers. But, as with anything the government does, there are no hard rules.

- Jackie

Lol,
Maybe pay taxes on the money you make?

That would be a start.
You can still file taxes like everyone else.

The job is great untill you grow up and want to buy a house.
Dont mean to sound bitter but if you make 250.00 or more an hour I am thinking you should think about paying taxes.

One of the only things you can do it see if you can file tax records for the last 3 years and pay your taxes.

Take all of your bills and ad about 30% and claim that as your income.
Then go to the local CPA and talk to them. Not H and R block
Ask what it would cost and hell, knowing Obama you would get a refund for the last 3 years and have a down payment for the house. Originally Posted by Gotyour6

Amen. However I say claim more of your income than that honestly. Yes you pay more, but the more you have on record the nicer things you can buy. If you say "Oh I make $4,000 a month" you're going to qualify for a lot less than if you say "I make $8,000 a month".

I have a current business license, an EIN from the IRS, and I keep anally retentive books of my income. Tax evasion = federal felony. The misunderstanding by police of solicitation = state misdemeanor. Which would you rather go down for?

Also, I really hope the ladies here that DON'T pay taxes NEVER bitch about "the 1%" or "tax breaks for the rich" because what you're doing is more trifling.

Other reasons to pay taxes:
http://onesta.missy-mariposa.com/201...ay-your-taxes/

The reporting limit fluctuates - it is based on an algorithm. If you never have any large deposits and walk in with $2000.00 in cash, it may trigger the form . . . there is really no way to tell. I have seen people that routinely make large deposits fly $20,000.00 in and out of their bank accounts and they have the information on file with the bank and the bank submits their information electronically to the IRS, they never even slow down the customer in the teller line (or the drive through) and I have a friend that works in a bank and for some people with high net worth, the IRS can suspend reporting requirements and audit those people differently if they choose. I have also seen a report triggered by someone cashing a GOVERNMENT check for $1,420.00. The IRS is getting pretty crazy in their requirements, and it has a lot to do with the office of Homeland Security also, and in some instances, ICE.

The "hard rule" as I understand it now, is that at $5,000.00, it triggers. But, as with anything the government does, there are no hard rules.

- Jackie Originally Posted by Jackie Devlin

It is actually a crap shoot what triggers it and what doesn't. But if you want to have some real fun have $500k wired from your Bank of America account here in the states to your account at Banco Nacional de Bolivia. That made me hit the super trifecta of federal visits in a month. IRS, DEA, and FBI all saw fit to send agents to question why 500k was wired to a bank in Bolivia. That was a very interesting month to say the least..

It is actually a crap shoot what triggers it and what doesn't. But if you want to have some real fun have $500k wired from your Bank of America account here in the states to your account at Banco Nacional de Bolivia. That made me hit the super trifecta of federal visits in a month. IRS, DEA, and FBI all saw fit to send agents to question why 500k was wired to a bank in Bolivia. That was a very interesting month to say the least.. Originally Posted by bladtinzu

So what did you tell them?

It is actually a crap shoot what triggers it and what doesn't. But if you want to have some real fun have $500k wired from your Bank of America account here in the states to your account at Banco Nacional de Bolivia. That made me hit the super trifecta of federal visits in a month. IRS, DEA, and FBI all saw fit to send agents to question why 500k was wired to a bank in Bolivia. That was a very interesting month to say the least.. Originally Posted by bladtinzu

So what did you tell them? Originally Posted by acp5762

I just hope she was good, very GOOD.

I'm not sure what the limit is at the moment I can research it unless ShysterJohn knows it off the top of his head, he's more seasoned than I am!

Edit to my previous posting:

"When a transaction involving more than $10,000 in cash is processed, most banks have a system that automatically creates a CTR (currency transaction report) electronically. Tax and other information about the customer is usually pre-filled by the bank software. CTRs since 1996 include an optional checkbox at the top if the bank employee believes the transaction to be suspicious or fraudulent, commonly called a SAR, or Suspicious Activity Report. A customer is not directly told about the $10,000 threshold unless they initiate the inquiry. A customer may decline to continue the transaction upon being informed about the CTR, but this would require the bank employee to file a SAR. Once a customer presents or asks to withdraw more than $10,000 in currency, the decision to continue the transaction must continue as originally requested and may not be reduced to avoid the filing of a CTR. For instance, if a customer reneges on their initial request to deposit or withdraw more than $10,000 in cash, and instead requests the same transaction for $9,999, the bank employee should deny such a request and continue the transaction as originally requested by filing a CTR. This sort of attempt is known as structuring, and is punishable by federal law against both the customer and the bank employee. Informed individuals who structure their transactions at an amount near, but not over $10,000 could have their accounts closely monitored by tellers and bank staff to see if a pattern emerges that could warrant the filing of a SAR."

So, I was both right and wrong, and I was confusing the SAR and the CTR, I apologize. However, there IS an algorithm for triggering reports similar to a CTR and triggering that may cause a report to be required at a lower amount, as I said, based on other specifics if the deposit account meets certain criteria. Most all banks have software that will flag the account and transaction - these include transaction reporting requirements from quasi-legislative branches and Departments such as: IRS, ICE, DHS, and many more.

So, the short answer to the question is that the reporting level is $10,000 in any one banking day cycle. The longer answer, I already gave - LOL.

So what did you tell them? Originally Posted by acp5762

That I was getting better rates at that bank than I could at a bank in the U.S. 1% may not seem like much but when you start talking about 1% more ROI on 500k it is worth the questions and digging into my background I went through. Though my accountant had a fit when he had to figure out how to claim the interest on taxes.