Why does Home Depot refund Cash for Debit Card purchases?

[legalt113]

Report it to the IRS?! lol wow. Income is reportable, lumber return proceeds is not income.

[trader_4]

I believe what they are referring to is that cash transactions of $10K and above are required to be reported by banks. IDK if that extends to any cash transactions. but if you walk into a bank and hand them $10K in cash, it will be reported to the govt.

[gfretwell]

A 10k transaction would only have to be reported if it was "cash" and both would be reported, washing the gain.

[micky]

I retuned something to Lowes recently, with no receipt. I expected, if I was lucky, a store credit, probably in the form of a gift card, so that means I had not charged it, and I know I didn't debit it. I paid cash in the first place as usual for something small, and they gave me cash back becuase it was under $10.

Well you have to show the card if you don't have a receipt. Otherwise, how will they know YOU bought it.

Tell the IRS you found $10K worth of lumber next to the curb. Someone had thrown it away.

Income for work, but what about money you find? I found $4 once that had been in an envelope, sent as a gift. The address had been washed out by the rain, and there were no houses nearby.

[gfretwell]

I live on a card and every time I have taken anything back to lowes, they scan the UPC, I swipe my card and the original transaction pops up on the computer. A few key strokes, sign the chit and I get a credit on my card. If it is a debit, I get cash. That is just how the banking system works. Debit cards are cash. Cash in, cash out. Credit cards are an electronic transaction. (no cash)

[gfretwell]

At the end of the day it is still about taxes to the IRS.

[trader_4]

Ask Dennis Hastert about that. As I recall he went to prison for structuring cash out of a bank, circumventing reporting reqts, where it was his own money and all taxes had been paid. Fighting drug trafficking and other illegal transfers, involves finding transactions and interdicting them, without regard to the tax status.

[Ralph Mowery]

I seem to recall some news where several took out just under the $

10,000 several times a year the government went after. It was not that they were trying to do anything illegal, but the business just deposited just under that almost every month as that was their sales or profits.

I hope my money is reported that I have been taking out of my IRA for the last several years. I take out $ 10,000 and have $ 1000 held back for taxes. Not sure if that makes it $ 9000 out and not reported or $

10,000 and is reported. Not that it really matters if I do not have to get in trouble with the feds.

I do remember the bank asking where I got some money as I made depostis of around $ 20,000 a few times from selling a house and another deal or two. I guess that somehow went to the feds.

[Ed Pawlowski]

Bank never questioned where I got money from. My (former) state last year flagged my return. I usually got back a few bucks or paid a few bucks. Never a big deal, but suddenly I'm getting in excess of 10K refund. That was an automatic flag.

Prepared for a long battle, I was pleasantly surprised. I talked to the auditor, he asked for some backup papers that I faxed, a week later the money was in the bank.

I still make money from interest in that sate but since it is less than

12k it is exempt.

[Clare Snyder]

I found $200 blowing down the street across from a bank machine. Found $50 US in the surf off PEI.

In Canada if you win a lattery it's not even taxed - - -

[Clare Snyder]

Correct. A debit card is "electronic cash"

[Ralph Mowery]

Seems like in the US even tax is taxed.

With all the taxes and government fees we get less than half our pay check to actually buy something with.

There is the income and social security tax before we even see our pay. Then property tax, drivers license, car tags, sales tax. Fees for many other things.

The lottery is taxed. People that gamble are taxed on the winnings, I think they can deduct the losses from the tax. Some roads are toll roads.

[gfretwell]

That was also a very unusual prosecution they made, simply because they were having trouble making the child molesting charge at the base of the scheme and they needed to charge him with something. The plea was a way to make it go away without being a convicted sex offender.

[Clare Snyder]

Including fuel taxes, income tax, prperty tax, etc we pay about 42.5%

[micky]

Gambling losses are deductibe, up to the level of gambling winnings. IOW, the net gain from gambling is taxable.

[Clare Snyder]

The only way winnings would be taxable in Canada would be if the gambling was considered to be a "business" where theycould be taxable

- if the gambling was an integral part of business operations. PERHAPS a case could be made in the case of a "professional gambler"

[trader_4]

I agree, it was very unusual. But it does show the law on $10K+ transactions can even be used against someone for moving their own, legally acquired money that they paid taxes on.

[Droseofc]

He could claim the taxes he paid on the $10,000 purchase. Here it is 7%. Thats $700. Assuming he gets it all back at the end of the year.. he could get the refund and claim the paid taxes, though it would be dishonest to claim taxes paid but actually didnt. Then again, who doesnt do that in some way or form.

[Marilyn Manson]

Me.