Most of the advice you have relieved is faulty with the exception of West Coast and Soothsayer, perhaps one or two others. All due respect to those trying to help.
A $10,000 transaction, if check or wire triggers nothing. The 10K limit is CASH. GREEN cash not checks. It would be millions of transactions a day across the US if it were 10K in any form. if you work in banking you see thousands of 10K transfers every day, no every minute. They are reported to no one.
The 25K is fraud, no question. Soothsayer is correct, they will break your balls and ask where it came from. If a gift..... Fine. NOT taxable to you and the bank will require a gift letter. The letter basically makes certain your dad is not a lienholder but post 2008 this is more difficult.
BTW your accountants advice is fine but unnecessary in my view. 25K is chicken feed with a 5 million exemption and the tax liability, if there were one, is your fathers, not yours.
If both of your parent's gift you the money, it can be over 25K I believe. I think the amount is roughly 13K per parent per year. They can give you the 25K and just forget about it. Pay them back when you can. Check the IRS documents for gift limits, reporting, etc.
ETA from the IRS website:
If you or your spouse makes a gift to a third party, the gift can be considered as made one-half by you and one-half by your spouse. This is known as gift splitting. Both of you must agree to split the gift. If you do, you each can take the annual exclusion for your part of the gift.
Currently, gift splitting allows married couples to give up to $26,000 to a person without making a taxable gift.
If you split a gift you made, you must file a gift tax return to show that you and your spouse agree to use gift splitting. You must file a Form 709 even if half of the split gift is less than the annual exclusion.
Last edited by The Boston Patriot; 07-10-2012 at 08:29 PM.
If both of your parent's gift you the money, it can be over 25K I believe. I think the amount is roughly 13K per parent per year. They can give you the 25K and just forget about it. Pay them back when you can. Check the IRS documents for gift limits. No reporting, etc. I've given my kids over the 10K amount on a couple of occasions. F' the authorities if you're legit.
If you do it 3 times, and anyone asks you about it, it's a gift/or money that he owed you. $25,000 isn't a lot of money, and nobody will care unless he sold drugs and made the money that way (or it came from somewhere illegal).
People move way more than that amount every day, and it's legit. What I wrote above is if you're really worried and want to do things on the "up and up".
FYI - Depending on the timeframe (ex. 3 transactions from the same account being deposited into your account over a few days or weeks and adding up to a large amount) most bank compliance systems and anti-money laundering programs will pick up on this. Most programs and algorithms are a little more sophisticated than doing a simple IF TRANS > 10,000 THEN ALERT. They look for patterns, etc.