I don't think a wire transfer to your brokerage account will circumvent the > $10K required reporting, and I'm a CPA, too (and I did do some basic online research). But even a CPA isn't the best person to ask, it's more of a banking question, but I think even a brokerage house is held to that same requirement with respect to transactions in the "cash" account there, which may very well also be managed in partnership with a traditional bank anyway. Securities sales there are exempt from that rule probably because they all will get reported on their annual consolidated 1099. All that said, yes there are lots of reasons deposit transactions > $10K are not taxable (inheritances, receipt of gifts, loan proceeds, life ins proceeds on death of insured, transfer to invest additional funds into your brokerage account, property settlement in divorce, closing proceeds from sale of principal residence usually, etc.). So such reporting doesn't automatically raise any particular red flag with the IRS. 2 points: (1) "Substantial understatement" and especially "fraud" penalties get severe and would be over and above late payment penalties and interest. Either case at least doubles the statute of limitations (no statute ever runs on "fraud"). and (2) If you report a gain transaction, you would add your improvements costs over the years to your initial cost basis, which will decrease the realized gain, and being long-term capital gain for assets held > 1 year, taxed at favorable federal rates. Most of us have spent "improvements" dollars over decades of ownership. Ordinary repairs/maintenance don't qualify, but still. Not telling anyone what to do here, just making you aware. Individual audit rates are incredibly low, well under 2% generally and probably under 1% recently, though higher for high-income taxpayers, etc.
