I am a young, single, male who earns decent money in secured records and saves every penny. I invest my extra money into commodities (mostly silver bullion) in an effort to save for my first home. What kind of records should I be keeping in an effort to prove that my savings and cash purchase came from legal sources when I'm ready? I'm familiar with the CTR process, but how do I validate my claim before I'm flagged as a criminal? Will the IRS hold a private interest in my (after taxed) wages and earnings?
Untitled
You should be able to document your income sources. For an investor, that means keeping records of purchases and sales sufficient to establish your cost basis for taxation purposes. Copies of periodic brokerage statements covering those transactions should be sufficient.
If your income sources are legitimate and capable of being documented, and you report them carefully when filing tax returns, you should have no concern about being "flagged." Of course, the IRS always reserves the right to audit taxpayer returns, and you will want to maintain substantiating documentation for at least six years.
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You should be able to document your income sources. For an investor, that means keeping records of purchases and sales sufficient to establish your cost basis for taxation purposes. Copies of periodic brokerage statements covering those transactions should be sufficient.