Old Aug 15, 10, 4:41 pm
  #1  
boncovi
 
Join Date: Aug 2010
Posts: 73
Question Spending $250K for Centurion, How About IRS? Large Cash deposits out of your league?

I'm a Green Amex charge card member for 6 months now.

I have spent $60K so far. Used for my expenses, bills, friends purchasing stuff over the internet, college tuition for another friend etc. etc.

I work in a retail business, electronics field, making $60k/yr.

We have a customer who buys stuff in quantities and somehow sells them to other countries. He always deals in cash.

He can easily spend $30k in a week, only with us. I know he shops around and buys many stuff, computers, cameras, ipads etc. from electronics stores, apple store etc. all legit places.

He's cool and we sit down and drink beer from time to time after work.

I know if I go and ask him if I could charge his purchases from merchants except where I work on my Amex and he reimburses me, he will say "no problem".

My question is, let's say I start charging his purchases on my card, will I have any problems with IRS or Police?

I checked my Amex spending ability and it's good up to $30k a month. I spend $25K a week for him, then he gives me $25k cash. This money has to go into my bank account. But how?

Cash transactions over 10K has to be reported by the bank. I know if you go and deposit 9K every other day, you may receive a letter from the bank telling that you're trying to avoid $10k threshold, be careful.

Authorities come knocking on your door and searching your house to see if you're selling drugs, or do you get audited by IRS?

On the other hand, how do you get taxed on personal buying/selling activities? Let's say I buy a single item for $9,000. I post an ad on craigslist, sell it for $9,000. I get paid cash, it's under threshold, and I did not make any income because I sold it at no profit, so nothing to get taxed. I do this 300 times and flipped $270,000 in cash, all deposited to my checking account in cash and transferred to Amex to pay the bill. How about that? Technically, I did not go above $9K at all, and I did not make any income.

In extreme cases, if someone comes to your door, IRS or Police, asking about the transactions and you show them the invoices / credit card statements and tell them you sold them locally for cash. Still trouble?

P.S., I am just curious about what would happen. I don't have an extreme lifestyle like flying everywhere, staying at hotels. I also think $5000 + $2500 annual fee is steep and I wouldn't pay that by making $60k/yr. But too much brainstorming brought up these questions.

Thank you for replies.
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