Auction house and ach transfer?

[SushiX]

If a auction house sends you a large sum of money (under 50k) though ach transfer, do the banks report it to the irs? Is it considered cash transaction?

[Junkdrawer]

I think anything over 10k gets bells and whistles

[G.A.tor]

yep..even if the auction house doesn't report it via a 1099 or some other IRS form, the bank does (for any wire)

[SushiX]

How about a physical check?

[comicjack]

Same thing over 10k rings your bell

[woowoo]

Same thing over 10k rings your bell :)

 

Once the bell has been rung it cant be unrun

[SushiX]

So I guess I shouldn't ring it at all than ?

[jaybuck43]

The $10,000 threshold triggers a Form 8300. It exists for AML (anti money laundering) purposes, not necessarily for tax purposes. 1099-MIsc has a payment for merchandise exception (https://www.irs.gov/pub/irs-pdf/i1099msc.pdf) and auction houses are not required to issue them, of course they CAN issue them. The responsibility lies explicitly with the tax payer to report their income.

[towards2112]

Even if you have a good day at the shop, and have over 10k in cash deposits it

rings the bell. Every Time. Fill out form blah blah blah. I took a copy from the

cashier at the bank, walked over to their copy machine, and made a few copies

for the next deposits.