Personal Finance

making cash money

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  • May 10th, 2014 7:02 am
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Sr. Member
Sep 29, 2012
792 posts
68 upvotes
Toronto

making cash money

hey

i am making $3500 cash a month .. is there any limit to deposit in the bank ? will government tax after some limit ?
or is it ok just continue depositing at?

Thank you
44 replies
Deal Addict
User avatar
Jun 23, 2009
1154 posts
140 upvotes
YUL
At that point you def need to work out a way to launder it.
An extra $42,000 of unexplained income/expenses will be hard to explain.
.
Deal Addict
Jan 19, 2006
4624 posts
1064 upvotes
Vancouver, BC
You're okay to continue depositing it, but you're supposed to report the income.
After you hit a amount, the interest you generate may cause a T5 to be generated, and you should report those too.
If it's a drastic change from your previous behaviour, your bank CSR may wonder about it...
Sr. Member
Sep 29, 2012
792 posts
68 upvotes
Toronto
i am almost 20 , i work 1 job before where it was direct deposit to bank but it was only like 600.
i have been doing this for last 8 months. i have lots of spending as well so i dont save 3500 but around 1000 a month . if i were to report where should i report it?
Deal Addict
User avatar
Jan 2, 2012
4596 posts
3099 upvotes
Toronto
http://www.cra-arc.gc.ca/gncy/lrt/lrn-mr-eng.html
Operating in cash and failing to keep records does not make you immune to taxes. If your lifestyle is not in line with the income you report, and you cannot explain the difference, the CRA can assess taxes based on indirect or alternate methods of calculating your income.
Deal Expert
User avatar
Jun 9, 2003
25310 posts
2536 upvotes
Markham, ON
eventually you'll get caught ;)

then they will pull records for 7 years....good luck lol

one of your clients will mistakenly claim the expense...cross audit...blam!
Sr. Member
Sep 29, 2012
792 posts
68 upvotes
Toronto
thats why i wanted to know if there is any limit . i know cra can tax me if they find out.
Sr. Member
Dec 24, 2007
858 posts
144 upvotes
GTA
rob444 wrote: http://www.cra-arc.gc.ca/gncy/lrt/lrn-mr-eng.html
Operating in cash and failing to keep records does not make you immune to taxes. If your lifestyle is not in line with the income you report, and you cannot explain the difference, the CRA can assess taxes based on indirect or alternate methods of calculating your income.
lol I know couple of ppl who does cash business, posting pics of travelling the world in first class with hermes purses (different color in different pics) on facebook. CRA should start from them, but so far I've seen none get in trouble yet. OP only saves $1000 a month, what a big deal?
Deal Addict
User avatar
Jun 23, 2009
1154 posts
140 upvotes
YUL
The CRA will quite literally audit until the day you received your first dollar. They are intense.
.
Deal Expert
User avatar
Aug 2, 2010
15196 posts
5016 upvotes
Here 'n There
sndeal wrote: hey

i am making $3500 cash a month .. is there any limit to deposit in the bank ? will government tax after some limit ?
or is it ok just continue depositing at?

Thank you
If you are asking the question then obviously you are committing tax fraud and/or the $ is from ill-gotten gains. Otherwise, why would you care about depositing large sums of money? If you are questioned you will have perfectly legitimate answers, ie "I declare my income honestly and I am operating a legitimate business. Here are my accounting records."
Sr. Member
Sep 29, 2012
792 posts
68 upvotes
Toronto
i am asking cuz i want to know the limit for depositing.

but let say i am getting this money from back home then what would happen?
Sr. Member
Sep 29, 2012
792 posts
68 upvotes
Toronto
Jimboski wrote: You said you were "making" the money, now you're saying you're getting it from back home.. Why don't you just ask how to launder money.
i do get it from back home and said the total i make
Deal Addict
Jan 30, 2012
1836 posts
1399 upvotes
TORONTO
sndeal wrote: i do get it from back home and said the total i make
The customary meaning of making money is that you are getting paid as an employee or running a business for profit.

In both cases, even if you deal entirely in cash you are still supposed to declare your income and file taxes with CRA.

What are the odds of getting caught if you don't? Ask a lawyer.
Deal Fanatic
Mar 24, 2008
6278 posts
2753 upvotes
Toronto
CRAZYBUBBA wrote: The CRA will quite literally audit until the day you received your first dollar. They are intense.
OP, listen to Crazy Bubba, he knows what he is talking about.
Deal Guru
May 1, 2012
10538 posts
11427 upvotes
Toronto
The CRA does not audit you if you deposit thousands of dollars (maybe less than 10k) once in a while... say once a year, or three times in 2 years.

But if you are depositing 43k a year... lol man ... they'll audit you faster than the speed of light.
Deal Fanatic
Mar 24, 2008
6278 posts
2753 upvotes
Toronto
Anikiri wrote: The CRA does not audit you if you deposit thousands of dollars (maybe less than 10k) once in a while... say once a year, or three times in 2 years.

But if you are depositing 43k a year... lol man ... they'll audit you faster than the speed of light.
There is nothing faster than the speed of light.
Deal Expert
User avatar
Aug 2, 2010
15196 posts
5016 upvotes
Here 'n There
sndeal wrote: i do get it from back home and said the total i make
LMAO, you are somehow getting cash every month from a foreign country and bringing it into the country to deposit every month?

Details please!

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