> People will start asking where your funds are coming from.
This is a weird statement.
If it's a cash offer, it's a seller's job to determine if you have the money, not if you paid taxes on it.
If it's a mortgage down payment, then the bank is more interested in if your assets are going to disappear (e.g. are they actually a loan from a third party?). I've never had a mortgage bank inquire about my tax situation.
If you're talking about IRS audits... then yes, they might be curious how you purchased a giant asset without any declared income. But that's similar to any unreported income situation.
>> People will start asking where your funds are coming from.
>This is a weird statement.
Not in the UK. Here there's a legal obligation on the conveyancing practitioner - which you have to use - to confirm the source of funds for the purchase. They "will ask questions about your salary, request bank statements and ask you to give details of any family inheritances"[1].
> If it's a cash offer, it's a seller's job to determine if you have the money, not if you paid taxes on it.
Yes, but your bank and the bank of the seller both have strict KYC/AML rules to respect. And the seller probably doesn't want to accept a pile of bills that requires laundering.
This is a weird statement.
If it's a cash offer, it's a seller's job to determine if you have the money, not if you paid taxes on it.
If it's a mortgage down payment, then the bank is more interested in if your assets are going to disappear (e.g. are they actually a loan from a third party?). I've never had a mortgage bank inquire about my tax situation.
If you're talking about IRS audits... then yes, they might be curious how you purchased a giant asset without any declared income. But that's similar to any unreported income situation.