FlyerTalk Forums - View Single Post - Spending $250K for Centurion, How About IRS? Large Cash deposits out of your league?
Old Aug 17, 10, 11:40 pm
  #44  
DownUnderFlyer
Moderator: Asiana & Qantas Frequent Flyer
2020 FlyerTalk Awards
 
Join Date: Dec 2006
Location: STR/SYD/SMF
Programs: QF SG, LH SEN, OZ D+, HH D, SPG P
Posts: 13,979
Originally Posted by thissnisnottaken35 View Post
The OP wouldn't be subject to gift taxes; he'd be acting as an agent for the customer (not a reseller). He'd show all of the money from buying electronics as business revenue, offset by the cost of acquiring the merchandise.

The IRS won't have a problem as long as you keep good records. They might laugh at you when you tell them you're trying to generate massive pass through spending to get a Centurion card.

As long as you do the proper paperwork, it doesn't matter that you'll have banking transactions over $10k. It's just a flag for the IRS -- and if you're keeping your records on the up-and-up, you'll survive an audit.

That said, you're setting yourself up for an audit, an FR, and potential trouble if your customer fails to pay you for any reason.

If you're not planning on getting a cent card this year, and you don't care about MR, then there's honestly no point in going through all of that trouble.
Good approach.

I think the OP would be able to do this if he works closely with the bank, IRS etc and ideally gets his "friend" to deposit the money in the bank directly rather than pay it to him in cash. Doing so would also increase the chances of the money coming from legitimate sources.

BTW, buying such large quantities or merchandise from retailers and not wholesalers or the manufacturers and exporting it to other countries is either suspicious or not very profitable.
DownUnderFlyer is offline