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Rising Star
If they ask, why can’t you say it’s proceeds from selling an investment?
Rising Star
A1, in theory yes. But let's say OP did a bunch of transfers in and out of their crypto account. The mortgage broker will then want proof for all of those funds / transfers
If you deposit over 10k you will be asked. If you have less than 10k you won’t be asked. If you have more than 10k to deposit and split it into deposits below 10k, you are breaking the law. Just deposit what you have and fill out a form if it is over 10k
If you have several smaller amounts that exceed 10 over a short period of time they could flag it and you could get investigated. No idea how likely it is, but just pointing out it is a risk. If you have more than 10k and want to deposit it, just deposit it and don’t try to play games and hope to not get noticed. Once again we are talking about cash deposits not transfers.
Rising Star
Just went through this process. Any deposits or transfers over $5K in the past 60 days were flagged for me
Different banks have different thresholds and look back periods
I would personally wait days before closing after you’ve given them your final statement. These things can cause headaches and certain mortgage loans will require you to disclose “all financial assets” yada yada. Just avoid that, don’t disclose and transfer close to closing below $10k.
The last thing you want is for it the transfer to be on a bank statement, and then underwriting wants to know how much is in that “broker”, etc.. due to it likely affecting total income
Again, structuring stemming from an aversion of the CFTRA is only illegal on ill-gotten gains. It will raise red flags with the bank and the IRS will perform their review. If my $20k was made mowing yards and I only takes $5k to the bank each day for four days, it's going to get flagged. But as a professional landscaper I pay my taxes and you can follow the trail. Review closed. On the other hand, if I go to Vegas and win $20k on blackjack and do the same $5k deposits 4 days in a row, the review will create an inquiry of said money and it will determine if I'm intentionally trying to circumvent the IRS reporting. Most likely I'm trying to avoid paying taxes on those monies so my intent is illegal, therefore structuring applies to me.
As long as you have the statements to prove that those funds are legitimate, yours and not loans, then you’ll be fine.
It’ll just be extra paper/electronic documents that you’ll have to provide to show it can from this account.