Question On CTR Reporting Of Deposits
Hi I have a question that I hope someone can help me out with. I have an investor that is going to be contributing about 20k into a home that we are going to rehab and then wholesale back out. I would prefer to have the money in my account so that I can control the expenses and that sort of thing. Now we will have a promissory note set up for payback of the 20k. When I deposit this into my account, I assume it is going to trigger a CTR back to the IRS. Are they going to count this money as income for me and then tax me on it or will the promissory note show that it is only a loan and not subject to taxing?
Thanks
Joe
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Is CTR short for Cash Transfer Report? If so step one of this deal is not to take the money in Cash, have them write you a check. No Cash No CTR.
Other than that, yes the note shouldcya about where the money came from.
I'm a little nervous about putting this money in your account though. Is the loan agreement the only way this transaction being characterized or does the investor have some interest in the deal other than just loaning you money?
lol Well he is interested in the money that I am going to be making him. and yes it stands for Cash transfer Record. So CTR only refers to cash transactions eh? If it is a check then no reprt. I thought they were filed for all deposits over $10,000
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