topic This was months ago in Get your taxes done using TurboTax

I received eight thousand ($80k) dollars for someone that didn't have an account in the states and now I don't know how much taxes I'll be charged!

xpro — Tue, 04 Jun 2019 18:55:17 GMT

Should I put some documents in place ?should I make a contract ?should I create a loan doc or something like that ?what documentation should I ask for in order to not be held accountable for that?

$80,000 or $8,000? Eight thousand or Eighty thousand?

VolvoGirl — Tue, 04 Jun 2019 18:55:18 GMT

$80,000 or $8,000? Eight thousand or Eighty thousand?

received FOR someone? For what? From whom? How did yo...

Lisa995 — Tue, 04 Jun 2019 18:55:19 GMT

received FOR someone? For what? From whom? How did you receive it?

What are you supposed to do with the money? Is it already...

rjs — Tue, 04 Jun 2019 18:55:20 GMT

What are you supposed to do with the money? Is it already in your bank account? This sounds like a scam. Don't touch the money for a month. The deposit may turn out to be bogus, and the bank will take the money back. If you have already taken it out of your account when they find out the deposit was no good, the bank will come after you for the money.

80k and it was in my bank and the person asked me to pay...

xpro — Tue, 04 Jun 2019 18:55:21 GMT

80k and it was in my bank and the person asked me to pay all his fees with my account now the funds are gone but I don't know if and how I should say that was for

What fees did you pay? How long ago was this? Did the i...

VolvoGirl — Tue, 04 Jun 2019 18:55:22 GMT

What fees did you pay? How long ago was this? Did the initial deposit clear? If the 80k deposit was fake you will have a big problem.

Oh I just noticed your username xport LLC. Is this a bus...

VolvoGirl — Tue, 04 Jun 2019 18:55:24 GMT

Oh I just noticed your username xport LLC. Is this a business transaction? If you received it as income and you can deduct the fees it might be a wash and only the profit is taxable.

Hi I just read your reply. No it was personal i was just...

xpro — Tue, 04 Jun 2019 18:55:25 GMT

Hi I just read your reply. No it was personal i was just receiving it for someone who asked me to pay all fees from my same account so it looks like I used up the whole 80k

Hope it all works out and isn't a scram. But that's how...

VolvoGirl — Tue, 04 Jun 2019 18:55:26 GMT

Hope it all works out and isn't a scram. But that's how a major scam works.

This smells really bad. You are supposed to be paying so...

xmasbaby0 — Tue, 04 Jun 2019 18:55:28 GMT

This smells really bad. You are supposed to be paying someone else's "fees" with this money out of YOUR account? And then what happens to you when it turns out his deposit was no good and you are holding the bag for the "fees?"

The funds were good all cleared but now I'm just worried...

xpro — Tue, 04 Jun 2019 18:55:29 GMT

The funds were good all cleared but now I'm just worried about my taxes and what I'd owe since it was all out of my account

His fees were things like taking out cash and paying hote...

xpro — Tue, 04 Jun 2019 18:55:30 GMT

His fees were things like taking out cash and paying hotel and restaurants and things like that

This was months ago

xpro — Tue, 04 Jun 2019 18:55:32 GMT

This was months ago

He signed a contract with an investor who fronted funds u...

xpro — Tue, 04 Jun 2019 18:55:34 GMT

He signed a contract with an investor who fronted funds up and deposited into my account for a business they were conducting that hasn't closed yet
But the funds were sent to me and I used it as per instructed by the guy. So now I'm just wondering how should I declare or what ...

you make a good money launderer.

fanfare — Tue, 04 Jun 2019 18:55:35 GMT

you make a good money launderer.

"His fees were things like taking out cash..."

xmasbaby0 — Tue, 04 Jun 2019 18:55:36 GMT

"His fees were things like taking out cash..."

The relevant tax laws are these: 1. If you receive a gif...

Opus 17 — Tue, 04 Jun 2019 18:55:38 GMT

The relevant tax laws are these:

1. If you receive a gift from a foreign person of more than $100,000 you must file a report. No tax is owed on legitimate gifts.

2. If you receive a gift of more than $14,000 from a foreign business or corporation, you must file a report. No tax is owed on legitimate gifts.

3. If you pay a gift of more than $14,000 per person per year, you must file a report. No tax is owed when you give a gift, unless your lifetime total of gifts is more than $5 million.

4. You must report all business income regardless of the source. If this was a business transaction in which you were providing a service, such as holding money and making payments for someone else, then you have business income. You would report the entire amount received as your gross income, you would report the fees and any other expenses as your business expenses, including money that was paid back to the original person. Anything that you kept for your services would be taxed as self-employment income.

5. If, on the other hand, this was a scam, then you may have a deductible theft loss. While we don't know the full circumstances of the transaction, one common scam is for a foreign person to make a large deposit into your account, from which you pay "fees" and "taxes". However the foreign deposit never clears because it is from a fake or closed account and is eventually removed from your bank account, leaving you with negative money. The amount of negative money represents the "fees" that were stolen by the scammer and you may have a deductible theft loss.

However, we cannot give legal advice, and there are certainly elements of this transaction that appear suspicious, and might look like money laundering to the IRS or other authorities. You may want to consult a tax attorney to really understand your position here.

Thanks - yea it wasn't a scam it was from someone that I...

xpro — Tue, 04 Jun 2019 18:55:39 GMT

Thanks - yea it wasn't a scam it was from someone that I knew ... but the fees were just charges of hotel and restaurant charges and ongoing charges for staying in the us.
I wasn't charging to do this I was doing a favor.
But if it's a gift they'll think I have those funds and it's really not mine- I'll really have to talk to an attny. Thank you all for your input