We are doing a "one pay lease" on a 991 and the payment is $45000 and change. We have never done this but there is a substantial saving by making the "one pay" for the lease. We can do cash / bank check and pay the max $5000 by credit card. I am just wondering if there are any tax implications of making this somewhat of lump sum amount in cash? (it will get reported to the IRS)

Thanks much!

Chris

 

I'm a CPA if the cash is legit, who cares if it gets reported to the IRS, you have no worries. I would be concerned on a one pay lease of the car gets stolen or totaled in an accident, what happens to you remaining months of that lease that you paid upfront for? Something to ask your insurance agent.

 

Thank you! Cash is legit - I guess my question is - once its reported, what does IRS really do with the information? Do i run the risk of an audit or something on those lines?

I see that you have a 2012 Carrera, how do you like it? any regrets not getting the S or the 4S?

 

I am loving the 911 base model. I had a 996 turbo previously. This certainly lacks the torque of the TT. Our Michigan roads are in such bad shape after the terrible winter I can't drive it like the car was meant to be anyhow.

 

Payment via check is not reported to the IRS because there is a paper trail to account for the money, as I understand it. Now whip out $45,000 in cash and they have to fill out a form for the IRS.

I believe the above to be correct.

 

Cash over $10K is to be reported to the IRS, or a series of transactions amounting to over $10K is supposed to be reported. I don't think it triggers an audit. I sold my last car and the guy paid me in cash. I took it to the bank to deposit it and since it was over $10K they had to fill out the form and report it to the IRS. I didn't care, as I had documentation for the sale, the guys name a copy of his driver's license, etc. It was not an issue for me.

 

OP-what's the savings of this single pay over the normal lease? Does it change the residual?

 

Thanks guys! I am going to check on the insurance matter as pointed out by Jeff

In case of a total loss or stolen car I am exactly not sure what the repercussions are when you do a "one pay"

Based on my calculation I am saving approximately $3200 when I do a one pay Vs. doing a $3999 cap cost reduction and a recurring monthly payment for 27 months

To me that savings can amount to two nice set of replacement tires given that the tires will need to be replaced ever 7K miles or so

 

What PorscheJeff said is right. What he also doesn't mention is that over 10k not only gets reported to the IRS but also the FBI. And it is when you deposit or withdraw 10+k from a bank account. It won't trigger an audit but the FBI may come knock on your door if they think your up to no good. This happened to one of my neighbors a long time ago when I was growing up and they were adding an addition to their house. And of course he was middle eastern.

But the only real thing you should worry about is insurance and such of what happens if the car gets totaled.

 

It doesn't matter the form of the money. All deposits and withdrawals of 10k or more gets reported to both IRS and FBI. But again it isn't really a big deal. Nothing is going to happen. If you are not doing any illegal activity there is no reason to worry.

 

Do some research before posting incorrect information, please. The OP is asking questions related to making a single payment on a car lease, not on bank withdrawls or deposits.

Per the IRS Guidelines of reporting Cash transactions:

Personal checks drawn on the account of the writer are not defined as cash. If the OP pays with a personal check, the Dealer is not required to file a form 8300.

From the IRS publication:
>
Example: Jim Roberts purchases an automobile from ABC Auto Dealers for $19,000. He pays with $4,000 in currency and a personal check in the amount of $15,000. Since a personal check is not considered to be cash, ABC Auto Dealers does not need to file a Form 8300.
>

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Workbook-on-Reporting-Cash-Payments-of-Over-$10,000#reporting

If the OP keeps his cash payment to less than $10,000, the business does not report the transaction.

 

What about a wire transfer?

 

What I said is 100 percent correct. Go talk to your local teller before saying people are spewing misinformation. What you misunderstood is I was not saying what would happen when he paid the dealer.I am talking in general if anyone withdraws or deposits over 10k what happens. Which naturally to pay the dealer 43k that money has to come out of somewhere.

 

The OP is referring to a transaction with a Dealer, not bank deposits. My original post you quoted was referring to his transaction with a Dealer, not bank deposits. Nowhere was money deposited in a bank mentioned in the OPs original question. You are unnecessarily confusing the topic. Porschejeff is correct about cash transactions over $10K with a Dealer, then you took off on an unnecessary tangent about banking.

If you want to post about bank reporting requirements, quote him, not me. I never mentioned it.

And, since you already mentioned it, there are numerous exceptions for banks reporting cash deposits as well based on who or what is doing the depositing, what is the nature of the deposit, etc.

 

I had a cashiers check for $132k = the sales tax and registration that came to over $144K taken out go money market account with one of my banks to pay cash for a 12' TTS in January of 2013. It was no problem.