Depositing a large sum personal check

[Charles C]

Hi all,

Question about the implications of depositing a large sum (6-figure) personal check. The source is my family, for the purposes of putting a down payment on purchasing a home within the next 6-12 months. I know I (as the receiver) wouldn't be subject to any taxes (only on interest beared if I put the money into CD or other money market product), however my family could be liable for the federal gift tax.

What I'm wondering is just how often this gift tax (which is ridiculously/absurdly high) is enforced. There must be thousands of similar types of transactions taking place every day in the US between family members, right? Furthermore, I know that banks must report cash transactions of $10,000 or more--but the same isn't true for personal checks?

Any and all advice, personal experiences, etc. are gratefully appreciated!

Thanks.

[sweeps]

You are exempt from $1 million of gift taxes. But it is still wise for your family member to file a form declaring the gift -- why risk trouble later.

[noppenbd]

By the way, if you are depositing a six-figure check then at least part of your deposit may not be FDIC insured. In these times of bank failures I would triple-check to make sure you are fully FDIC insured.

[QueenOphelia]

When I filled out my mortgage application they asked where all the money for my down payment was coming from. I had to list the exact summy parents gave, as well as their social security numbers.

[jIM_Ohio]

Deposit the money to an offshore account if the US banking rules are not to your liking.