Does the IRS Know When You Buy a House Cash?
Does the IRS Know When You Buy a House Cash?
Presented by Aviation Home Buyers
A lot of people who buy or sell real estate for cash wonder how much of that information the IRS actually sees. Especially when it comes to homes being bought without a mortgage. Many sellers think cash automatically equals “private.” But here’s the truth:
Yes — in most cases, the IRS will eventually know you purchased a property… even if it’s paid for in cash.
Why the IRS Can Still See Cash Real Estate Purchases
When real estate transfers, there is ALWAYS paperwork. Even if no bank is involved.
A few areas where this info becomes visible to the IRS:
How it’s revealed Why County property transfer records Public record. IRS can reference these at any time. Title / escrow companies They file federal forms and verify identity / funds. Reporting rules on large cash transactions $10,000+ in physical cash triggers a required report (Form 8300). Capital gains / tax basis later When that home is sold in the future, your cost basis matters — and the IRS expects it to match what you paid.
So even though you don’t have a lender or mortgage showing up on your credit report, the sale is still documented.
When Does a Cash House Purchase Trigger a Report to the IRS?
If someone pays $10,000+ in physical currency (actual cash), the party receiving the cash (title company, attorney, etc.) must file a Form 8300 — and that is sent directly to the IRS.
But even if you wire funds or use a cashier’s check, the home transfer still exists in public record databases where the IRS can reference if needed.
Bottom Line
Paying in cash doesn’t make a house invisible to the IRS.
Public record + federal reporting = they can see it.
So if you’re buying or selling — don’t assume a cash purchase is “off the radar.”
Selling Your Ohio Home for Cash?
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We buy houses in any condition.
No agents. No repairs. No fees.
You can get a cash offer in 24 hours and close in as little as 7 days.
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