Buying a house part cash

Johnc35 · 26-10-2017 3:09pm #1

Hi, could anyone tell me if there could be ramifications from buying a house part cash payment? i.e revenue? The house is 150k, I have about 30k in a savings account and the mortgage is 70k which means that the rest is 50k in cash that I literally have put away in a safe over the years as I get paid cash in my job but being self employed I haven't shown up all my earnings down through the years. The money doctor told me that it is highly unlikely that revenue will look into it as there are too many transactions and sales every day to look into them individually and as long as the seller pays his tax on the sale of the house and I pay my stamp duty that will be it.

Thanks everyone

RossieMan · 26-10-2017 3:13pm

is this a serious question that you really don't know the answer to already?

o1s1n · 26-10-2017 3:15pm

How do you plan on actually transferring the cash to the seller?
I take it you'll have to put it into a bank account? (and arent just going to appear with suitcases of cash?!

)

....... · 26-10-2017 3:18pm

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averagejoe123 · 26-10-2017 3:25pm

Step 1- Go to bank
Step 2- Deposit Money
Step 3- Pay for house
Step 4- Enjoy house

Johnc35 · 26-10-2017 3:26pm

RossieMan wrote: »

is this a serious question that you really don't know the answer to already?

I don't! lots of houses are bought with cash right! how do they do it so?
Travellers buy houses with cash for Gods sake!

The_Conductor · 26-10-2017 3:26pm

Johnc35 wrote: »

Hi, could anyone tell me if there could be ramifications from buying a house part cash payment? i.e revenue? The house is 150k, I have about 30k in a savings account and the mortgage is 70k which means that the rest is 50k in cash that I literally have put away in a safe over the years as I get paid cash in my job but being self employed I haven't shown up all my earnings down through the years. The money doctor told me that it is highly unlikely that revenue will look into it as there are too many transactions and sales every day to look into them individually and as long as the seller pays his tax on the sale of the house and I pay my stamp duty that will be it.

Thanks everyone

Ring Revenue- advise them that you wish to make a self-declaration and would appreciate the opportunity to discuss it with them- and take it from there.

If anyone here offered you guidance on tax evasion or avoidance- they would have a little holiday from this forum- so please don't go there.

It is not the case that you can turn up at your solicitors officer with 50k in cash- there are money laundering rules- and unless the solicitor wants to become complicit with you- they are obliged to report such transactions to Revenue and An Garda Síochána.

The only logical advice anyone here can offer you- is cop on, confess your misdeeds to Revenue and pay whatever tax and penalties they deem appropriate- and for crying out loud- don't do it again.......

The_Conductor · 26-10-2017 3:27pm

Johnc35 wrote: »

I don't! lots of houses are bought with cash right! how do they do it so?
Travellers buy houses with cash for Gods sake!

You are skirting getting a forum and possibly a site ban with this.
Consider this a one and only warning.

Johnc35 · 26-10-2017 3:28pm

....... wrote: »

This post has been deleted.

I wouldn't think the solicitor would care. I paid a solicitor 4k a year ago for an land title transfer and I wasn't asked any questions about where the cash came from.

stargazer 68 · 26-10-2017 3:29pm

Johnc35 wrote: »

I wouldn't think the solicitor would care. I paid a solicitor 4k a year ago for an land title transfer and I wasn't asked any questions about where the cash came from.

4k is way different to 50k!!

Johnc35 · 26-10-2017 3:32pm

Dovies wrote: »

4k is way different to 50k!!

fair enough

o1s1n · 26-10-2017 3:35pm

I'd say you'd have some cold sweat depositing 50k of untaxed cash into a bank account.

I deposited 20k in cash before as part of a property purchase, it was all tax compliant and I was still sweating like a mad bastard. Although I think part of that was from walking around with such a large sum :eek:

Johnc35 · 26-10-2017 3:37pm

averagejoe123 wrote: »

Step 1- Go to bank
Step 2- Deposit Money
Step 3- Pay for house
Step 4- Enjoy house

Deposit Money and I will be taxed on every penny

Sleeper12 · 26-10-2017 3:40pm

You are saying that you fiddled the taxman and the taxpayer out of 50k and you are looking for advice on how you can use this hot cash for buying a house?

Wow!

I'm sure you know that there is a house register now and revenue is notified of each sale. So revenue will know what you paid for the house.

Here's the deal. As self employed you will get tax inspections every 10 years or so & vat inspections more often. Possibly every 5 years. During one of these inspections revenue will be looking at all of your bank, credit union and credit card accounts. They will see a lodgement of 50k at the time of you buying the property & will ask you about it. Even if it was a gift they'll want gift tax.

L1011 · 26-10-2017 3:40pm

Johnc35 wrote: »

Deposit Money and I will be taxed on every penny

As you should have been initially.

You are highly identifiable from your posts alone, even if your name and presumably age last summer are fake.

averagejoe123 · 26-10-2017 3:40pm

Johnc35 wrote: »

Deposit Money and I will be taxed on every penny

Good. Pay your taxes. I don't think people will be interested in helping you to avoid taxes.

FebBaby · 26-10-2017 3:42pm

Johnc35 wrote: »

averagejoe123 wrote: »

Step 1- Go to bank
Step 2- Deposit Money
Step 3- Pay for house
Step 4- Enjoy house

Deposit Money and I will be taxed on every penny

Taxed what you owe!! Like the rest of us. Why should you not pay your taxes??:wassat:

The_Conductor · 26-10-2017 3:43pm

Guys- the OP is now on a 1 week forum ban - as a result of his unashamed seeking of advice on how to spend how 50k in cash.
If anyone else wants to discuss tax evasion- they will similarly get a forum ban.

We will not tolerate any discussion on tax evasion- or how to get the cash back into the system- without exception.

Regards-

The_Conductor

godtabh · 26-10-2017 3:43pm

I have been referred (yesterday) to the Revenue Commissioners by a solicitor for an €8k cash transaction (for a deposit) under money laundering legislation.

Hitman3000 · 26-10-2017 3:44pm

averagejoe123 wrote:

Step 1- Go to bank Step 2- Deposit Money Step 3- Pay for house Step 4- Enjoy house

Over 5k of a deposit the bank is obliged to inform the Revenue Commissioners.

averagejoe123 · 26-10-2017 3:46pm

Hitman3000 wrote: »

Over 5k of a deposit the bank is obliged to inform the Revenue Commissioners.

Understood. I was under the assumption that the OP wasn't breaking the law.

ace_irl · 26-10-2017 3:47pm

Johnc35 wrote: »

Deposit Money and I will be taxed on every penny

You will, and Revenue could very well charge you interest and penalties on late filing of tax returns.

A solicitor will have to satisfy anti money laundering requirements and tax clearance requirements regarding the source of your income. Even if it was possible to pay 50K in cash you would have a lot of questions to answer regarding the source of it.

Ring Revenue and sort it out.

Two things are unavoidable in life, taxes and death, you just got to deal with it.

emeldc · 26-10-2017 3:59pm

Hitman3000 wrote: »

Over 5k of a deposit the bank is obliged to inform the Revenue Commissioners.

Yea, even if you buy a car from a dealer with more than 5k in cash, they are obliged to inform the rev. It's all very well stuffing offside cash under the mattress but as the OP has found it can be very difficult to spend it.

26-10-2017 4:01pm

The_Conductor wrote: »

- they are obliged to report such transactions to Revenue and An Garda Sh.

I can't see how they would be obliged to do this as it would be a breach of solicitor/client confidentiality.

....... · 26-10-2017 4:02pm

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Johngoose · 26-10-2017 4:08pm

You could do a Bertie Aherne and say you had a good day at the dog track!:-) if I were you I would use legit money to buy the house and use the cash to live off of for a few years. I'm no where near having you cash though!:-(

Mint Sauce · 26-10-2017 4:13pm

A Cash Sale, or even part Cash does not mean you roll up at your solicitors or the seller with a bundle of notes. It is transfered from your account, along with the Mortgage amount to the seller. with your Solicitor handling all the in between stuff.

Your bank though, will ask where all the money came from, as part of the Mortgage application.

Sleeper12 · 26-10-2017 4:14pm

I'm pretty sure that there is a difference in laws covering a solicitor selling a house and a defence solicitor that you use in a court of law law.

I'm also pretty sure that there are laws saying that a solicitor helping you evade tax is guilty of a crime and I'm betting can be struck off as a solicitor for life

emeldc · 26-10-2017 4:19pm

emeldc wrote: »

It's all very well stuffing offside cash under the mattress but as the OP has found it can be very difficult to spend it.

....... wrote: »

This post has been deleted.

I said 'offside' cash. If you can prove where it came from there would be no need hide it under the mattress. Just put it in the bank like everyone else.

Hitman3000 · 26-10-2017 4:24pm

averagejoe123 wrote:

Understood. I was under the assumption that the OP wasn't breaking the law.

In his first post he admitted he had broke the law.

....... · 26-10-2017 4:24pm

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Hitman3000 · 26-10-2017 4:26pm

....... wrote:

This post has been deleted.

Correct once you can account for it. Nothing illegal about saving at home from taxed income. Problem occurs when you work cash in hand as the OP admitted to.

emeldc · 26-10-2017 4:30pm

....... wrote: »

This post has been deleted.

Offside cash is cash that you haven't paid tax on. Maybe i'm not saying it right

L1011 · 26-10-2017 4:40pm

Corinne Damp Hurdler wrote: »

I can't see how they would be obliged to do this as it would be a breach of solicitor/client confidentiality.

They are obliged to as it's the law. Client confidentially only goes so far as the law allows.

26-10-2017 4:55pm

L1011 wrote: »

They are obliged to as it's the law. Client confidentially only goes so far as the law allows.

I feel I kill someone and tell my solicitor he can't disclose it so why is it different in this situation?

Hitman3000 · 26-10-2017 5:01pm

Luke Huge Hedge wrote:

I feel I kill someone and tell my solicitor he can't disclose it so why is it different in this situation?

Because the government decided it is and there is legislation there obliging people in certain sectors of the economy to inform Revenue of cash amounts over 5k.

L1011 · 26-10-2017 6:00pm

Corinne Damp Hurdler wrote: »

I feel I kill someone and tell my solicitor he can't disclose it so why is it different in this situation?

Because the law is written that way.

You aren't actually telling the solicitor anything when paying them in cash, the very transaction itself is what has to be reported if over limits

quadrifoglio verde · 26-10-2017 6:10pm

1st rule of spending undeclared cash is not to leave a paper trail.
You leave one long trail when you buy a house op.

Hannibal_Smith · 26-10-2017 7:32pm

Corinne Damp Hurdler wrote: »

I can't see how they would be obliged to do this as it would be a breach of solicitor/client confidentiality.

It's the law. There is no confidentiality breach. Any payment you receive from a third party of more than €13k (pretty sure that's the threshold?) you need to do an anti money laundering check and request back up as to where the money came from. You don't get that, you don't act for them and you report them to the Gardaí. If you don't, you will be heavily fined.

Buying a house part cash

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