I want to help a friend of mine purchase a condo in Puerto Vallarta, Mexico. I would be transferring about $40,000 to his account in Mexico. When he pays me back by transferring money to my account in Los Angeles, what are the limits that can be deposited at one time (the $10,000 rule) or is there a limit before it is reported to the IRS? It is my money that I am lending and there will be a paper trail of the money going out and coming back in.
Untitled
If you make a bona fide loan and receive bona fide payments, the IRS's interest in your transactions should only concern how much interest you report on your tax return. Keep records of your transaction, and report interest received as income, and you should not have problems.
Banks have to maintain records on wire transfers sent and received, but none of what you have described would routinely be reported to the IRS, because none of the transactions are in cash.
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If you make a bona fide 