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  1. #1
    Join Date
    Mar 2008
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    Cool Purchase Land With Cash In Northern California

    I have a friend who is interested in purchasing some land in northern California with cash. This friend is concerned about the process of buying land, putting the land in his/her name, and keeping the source of the cash completely private. Who is involved in a land for cash transaction like this? What government agencies will be informed, and how are they informed?

    Any details regarding this would be appreciated!

  2. #2
    Join Date
    Feb 2008
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    578

    Default Re: Purchase Land With Cash In Northern California

    Quote Quoting Norcali
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    I have a friend who is interested in purchasing some land in northern California with cash. This friend is concerned about the process of buying land, putting the land in his/her name, and keeping the source of the cash completely private.
    Nothing is completely private, especially with RE transactions, nor are sources of cash if government agencies want to know where it came from.

    Who is involved in a land for cash transaction like this?
    Could be just a seller and buyer. Others involved could be realtor, seller's and buyer's attorneys, notary, other settlement officers, etc.

    What government agencies will be informed, and how are they informed?
    Local and State - town clerk, county registry of deeds, tax assessor/collector, RE tranfer taxes, possibly 1099-S similar to federal

    Federal - IRS: 1099-S for proceeds for RE transactions has both sellers and buyers name, address, SS/TIN, etc; also possible 1098 for seller's and buyer's prorated share of property tax.

    Form 8300 must be used to report any cash business transactions over $10K(including RE by agents, attorneys, etc), and cash deposits to banks in excess of $10K are reported(CTR). Note that any suspicious cash activity can be reported regardless of amount. USPS also reports suspicious money order transactions.

    If foreign nationals are involved there may be additional reporting requirements as well.

  3. #3
    Join Date
    Mar 2008
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    2

    Cool Re: Purchase Land With Cash In Northern California

    Four Eyed Buzzard, or anyone else out there...
    Any suggestions for my friend on how to keep a transaction such as this legitimate and discreet?

  4. #4
    Join Date
    Feb 2008
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    578

    Default Re: Purchase Land With Cash In Northern California

    http://www.bearak.com/articles/trends.asp might give you some insight on using trusts and corporate methods.

    Any way he does it though, there's going to be a paper trail somewhere. And if somebody digs a little they'll find it. The deeper you try to hide it, the harder it is to find, but the bigger a hole you've dug. If doing it for illegal pupose, you could get into serious jail time situations pretty easily.

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