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#1932898 - 06/16/14 06:09 PM Large Cash out for Home Improvement
THSCPA Offline
100 Club
Joined: Sep 2004
Posts: 112
New York
We occassionally have customers who will do large cash out transactions ($50,000) for home improvement projects. I am guessing that their contractors will give discounts for cash, etc.

They are not structuring the withdrawals, so CTRs are filed.

My question is whether this type of transaction is SAR worthy. We can generally trace the source of the cash (loan proceeds, etc). I find it unsual that someone would pay $50,000 cash for something, but maybe others find it perfectly normal.

Would you generally file a SAR when a customer withdraws $50,000 to $75,000 for a home improvement project?

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#1932915 - 06/16/14 06:38 PM Re: Large Cash out for Home Improvement THSCPA
NotDoneYet Offline
Gold Star
Joined: Jul 2010
Posts: 482
Personally, if I can trace the funds to a legitimate source, like loan proceeds, I wouldn't file a SAR, and I document why.
It is not uncommon around here for people to pay cash for large purchases/expenses. They don't care if a CTR is filed.
However, we do monitor how often they do this and whether it makes sense for the project they told us about.

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#1932966 - 06/16/14 07:34 PM Re: Large Cash out for Home Improvement THSCPA
MagicCity Offline

Power Poster
Joined: Apr 2003
Posts: 3,003
Fort Lauderdale, Florida
We do the same as NotDoneYet.

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