Question:

Taxed on a withdrawal of more than $10,000?

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I placed over $100,000. of my mom's money into 2 different banks in NON-interest bearing accounts.This was done for Medicaid/estate planning. Well my mom and I are no longer communicating, and I want the money out of my name. If I give her back the money (in cash) am I going to get taxed when I withdraw it? Someone told me I can only withdraw less than $10,000. at a time. If that is so, how often can I withdray $9,999.? Once a month...once a year....?

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4 ANSWERS


  1. If taxes are due, they will be due on any capital gain amount.

    The only consequence of withdrawing $10,000 or more (it may have gone up?) is that the transaction will immediately be reported to the IRS and to Homeland Security, I think...

    BTW, juggling family money around to evade loss of benefits is fraud.


  2. just transfer the accounts to her name, much easier than withdrawing every month. contact her, I know you aren't communicating, but I'm sure she wants her money.

  3. that really applies to deposits 10k & over.  those are booked and kept on record.

    if you give the $ back to her solely then he will surely lose her benefits because of her assets

    and always put the cash into an interest beating account

  4. Just get bank checks for the money in the accounts (make sure you tell the bank you are closing them) and mail the checks to her.  This will leave a paper trail so there are no questions.  I assume you did not go in and open the accounts with actual cash so there is a trail to follow to show it was her money to begin with.  Keep all your statements and receipts in case there's ever a question.  

    The worst thing you can do is to try to withdraw cash multiple and do it for just under the $10,000 reporting limit.  Banks can spot that kind of structuring and then it will appear suspicious.  The reporting is done when any transaction (deposit or withdrawal) is OVER $10,000 cash.  The reporting requirement is in place to catch money laundering operations for the most part.  If you aren't doing anything illegal, there's no reason to be concerned about reporting.

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