Found Money

[w-crum]

What is the name of your state? Indiana

Recently I purchased a dresser at a estate auction.

When I got it home I took it appart so I could clean it up and paint it. Under the bottom drawer was a fake bottom and in the area below I found a very large sum of money.

All the bills are the old style. Most are 50's & 100's but there are some $1000.00 bills.

We are not a wealthy family and I'm worried that if I start making large deposits at the bank (especially the $1000's) it will raise some questions.

What can I do with the money without the IRS getting involved?

 

[abezon]

Well, the first question you need to ask is whether you even get to keep the money. I suggest you hire a lawyer to find out what the "treasure trove" laws are in Indiana. Attorney client priviledge will apply & the attorney can't tell anyone that you found a bunch of money in a dresser. (If you bought the dresser at Goodwill, you'd keep the money, since there would be no way to find the original donor. But we know where the estate sale items came from, or can find out easily enough. Hence your first legal problem.)

If you get to keep the money, you probably have to report it as income & pay the taxes.

If you're determined to ignore the laws & keep all the money, you'll have to keep it as cash & spend it gradually. I'd suggest you store it in a safe deposit box or at least a fireproof safe at home. You could also deposit the money in dribs & drabs over a few months.

 

[w-crum]

Thanks for the advice.

Part of the reason I don't want to tell anyone about the money is I don't want to take the chance that I won't be able to keep it. Some people might think that is wrong but I don't care.

I did get a fire safe to keep the money in for now but I might put some of it in a safe deposit box since that would be safer. I've been putting $200 a week in the bank with my child support checks every week and no one has asked any question yet.

Another question.
I was told that the bank reports cash deposits of $1000 or more to the IRS. Do you know if that is true?

 

[I AM ALWAYS LIABLE]

You wouldn't happen to know Wayne Crum, in Frankfort, Indiana, would you?

IAAL

 

[Son of Slam]

I don't know just what you mean by "old style," but large denomination notes can be scarce to rare, highly sought after collector items. If you mean the old large size currency (which I doubt) you are sitting on a mint!

 

[w-crum]

To IAAL,

Sorry, but I don't know Wayne Crum in Frankfort. He may be related to my husband Ty, but I don't know.


To SOS,

I was refering to the old style 100's that we had before they changed them a couple years ago. There are several 1000 dollar bill's but I don't even know if they are real because I have never seen a $1000 bill before. They have a picture of president Cleveland on them. The oldest bill I found was dated 1948 but most are from the 1970's and 1980's.

I'm worried about spending or depositing the $1000's because it may cause some questions.

Can either of you answer any of my questions?

 

[I AM ALWAYS LIABLE]

My response:

Banks report deposits of $10,000.00 (Ten Thousand Dollars) or more made at one time (it's for tracking the drug trade).

However, and this is a big however, banks are also obligated to record the serial numbers of, and report those numbers too, along with the name of the person passing the same, of all Federal Reserve Notes that are $1,000.00 bills or larger (the reason being is because they are so rare, and normally not used in day-to-day transactions. This also includes any person or company receiving such high value bills.

You're going to have a devil of a time passing or banking those notes without someone demanding your identification, and don't be surprised if the Federal Reserve folks contact you to determine from where or whom you received those large bills.

Eventually, if you want to spend those large bills, you're going to need to report them to the IRS because the person or company to whom you're going to pass them must also report them, and from whom they received them.

So, no matter what you do (with the exception of using them for wallpaper) you're going to be "discovered" and be required to pay income tax on the money.

IAAL

 

[alligatorob]

You might consider taking one of the $1000s to a coin shop and having them look at it. They could tell you if it is real and if it has much of any value over its face value. I do not believe these were printed after 1946, although they were not taken out of circulation until 1969. If real they are still legal tender, you can spend them legally. Don’t expect them to be worth a whole lot more than the face value, for older large bills collectors don’t pay much. It is the smaller bills that could be worth a lot more than their face value, so be careful what you spend.

Better yet send a bunch of them to me and I will provide you a free assessment in trade for the bills!

 

[w-crum]

Thank you all for the helpful info.

There are only 32 of the $1000's so I guess if I have to I can report that. But I will take them to a coin collector to check and see if they are real. All of the $1000's are dated 1949 and 1950.

If I take one to a coin collector what is his obligation to report to the government?

 

[abezon]

None. So far as he knows, you're a collector hiring him to appraise the bills so you can decide whether to stay invested in currency or buy stocks. Pay for the appraisal. You probably get a written privacy guarantee that way.

 

[I AM ALWAYS LIABLE]

There are only 32 of the $1000's so I guess if I have to I can report that.


========================================


My response:

You found 32 - $1,000.00 bills, plus an assortment of other denominations, under a drawer? Damn! Then, all I've got to say is . . .


Well we're movin on up,
To the east side.
To a deluxe apartment in the sky.
Movin on up
To the east side.
We finally got a piece of the pie.

Fish don't fry in the kitchen;
Beans don't burn on the grill.
Took a whole lotta tryin'
Just to get up that hill.
Now we're up in the big leagues
Gettin' our turn at bat.
As long as we live, it's you and me baby
There ain't nothin wrong with that.

Well we're movin on up,
To the east side.
To a deluxe apartment in the sky.
Movin on up
To the east side.
We finally got a piece of the pie.


IAAL

 

[itsallgood]

Again; my mouth is agape at the thought of FINDING OVER $32,000.00.

Could she put $10,000.00 a year in her bank account; and claim it as a 'inheritance gift'....

Can't you 'gift' $10,000.00 a year TAX Free?

Of course; she would have to say who gifted it to her....

I just can't believe if I went out and found $10,000.00 under a rock; the IRS would take their 33%.

That just seems wrong!

 

[abezon]

The IRS will take their % if she files a legitimate tax return. she has to list the $$ on line 21 (1040) as "Treasure Trove" & pay taxes on it. Failure to do so will set her up for fraudulent filing penatlies & interest. There is no statute of limitations for fraudulent tax returns, so even the normal wait 3 years & breathe a sigh of relief won't help.

 

[DrewfromCA]

To Crum...

I don't condone that you are going to keep the money, but you are, it seems, so this is strictly for informational purposes only.

Your bills are pretty old, but not that old. Turn of the century, and you are on a gold mine. That said, the money you have, if in good condition, is worth significantly more as collectibles than as actual currency.

Some people have been known to go on EBAY to see what things go for at auction....

Also, please give me the name of the estate auction, as I have some Christmas shopping to do myself...