"Currency Transaction Report"

[Modeler]

We just sold my wife's car today for cash. We took the car to our credit union and met the seller to complete the sale. He brought cash, we did the paperwork in the lobby and then walked up to the teller to have the cash counted and deposited into our account to pay off the loan. The CU advised us that a "Currency Transaction Report" (CTR) had to be filed since the cash amount was over $10,000. He did it electronically, we walked out and went online to transfer the funds to the out-of-town CU to pay the loan.

Has anyone ever done a CTR before? What is done with it? Is there some sort of a tax impact for this transaction?

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[nwdrifter]

IRS will get flagged

 

[letrain]

Not unless it was profit. You are only allowed to gift someone 9,999$ a year. Or its counted as income. Being that you were selling a car you shouldn't have to. There is no federal sales tax. If they were just giving you 10,000 then its supposed to be reported. But you sold an item. So you didn't gain any money since you already traded $$$ for a vehicle.

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[drew]

I believe its in place to prevent money laundering so you should be fine. I've done no research though.

 

[letrain]

That's exactly why. If you were acquiring a vehicle for free and selling it multiple times it might. But you were just settling for what you owe. No big deal.

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[BAMCIS]

Been there done that. Don't worry about it. Not a big deal. If you make several transactions that trigger a "currency transaction report" over a period of a few months then the feds MAY want to have a chat with you. Reasons as described above, money laundering.

 

[Modeler]

Ok, cool. That's what I thought, but I wanted to ask.