What does a million dollars in the bank do to your taxes?
Sunday, June 22nd, 2008
Kender_fury asked:
Imagine that someone gives you or you win more than a million dollars. You pay the inheritance/gift/prize tax and you now have an even 1 mil in your bank account.
A) How does it affect your taxes if you let it just sit there?
B) What if you invest it by buying 1 mil worth of high yeild CDs?
C) Does this send out a red flag that makes you more likely to be audited?
Imagine that someone gives you or you win more than a million dollars. You pay the inheritance/gift/prize tax and you now have an even 1 mil in your bank account.
A) How does it affect your taxes if you let it just sit there?
B) What if you invest it by buying 1 mil worth of high yeild CDs?
C) Does this send out a red flag that makes you more likely to be audited?
