According to the American Overseas Chinese News website reported on May 22, in the United States, many Chinese people store large amounts of cash in safes instead of putting them in banks to enjoy the US government's welfare policy for low-income groups. Faced with the temptation of low house prices today, many people have entered the market to buy a house with cash. In response, the US Department of Taxation and Welfare conducted an investigation into the source of these people's cash.
Daily income is settled in cash
It is reported that a Chinese real estate lawyer in the United States has received a request from a client to consult a related issue investigated by the welfare and tax authorities after buying a house with cash. According to reports, the client is a 50-year-old Chinese woman whose daily income is settled in cash and then stored in a bank safe. As a result, she also enjoys low-income benefits and holds a medical insurance white card.
U.S. housing market has been sluggish
The US housing market has been sluggish, which has made her renting her move to buy a house. In 2012, she was fancy for a cheap house, so she used the cash in the safe to buy it in full. In order to make her buying behavior reasonable, she almost no longer used white cards within 2 years, and wanted to avoid investigations by the welfare and tax authorities. But not long ago, she received a letter from the US State Department of Welfare asking her to explain the source of her cash and asking for an explanation of the reason for her white card application. After that, the tax department again investigated the cash origin and tax payment of the Chinese woman.
The full cash purchase tax department will know
In response, a professional lawyer who received help said that all information on buying and selling houses in the United States is public. If Chinese people enjoy government benefits, they will know about the relevant welfare and tax departments if they buy a house with full cash. Lawyers suggest that Chinese who enjoy benefits and want to buy a house can give up the benefits or reduce the use of cash in the down payment of a house purchase.