Is Cash Gifting Legal? Yes, it Is! Now Prove Me Wrong!
Well here we go again. Is Cash Gifting legal? Yes it is. And unless there’s someone, other than an ‘ignorant know-it-all, shit for brains, half-twit, who can prove me wrong, I’d say it’s past time to put this puppy to rest!
Here’s what you need to know. In doing your research on Cash Gifting, you will undoubtedly come across websites, articles and blogs that will claim, and quite convincingly so, that cash gifting is either a pyramid scheme, a MLM scheme, a get rich quick scheme or all of the above and without a doubt, all of the above are indeed ILLEGAL and cause people to lose a lot of money. In my option, most of the authors of such material simply have the readers best interest at heart, and have themselves either loss money as a result of participating in one of these schemes or have seen friends and/or family members who have been ripped off. NONE OF THAT MAKES CASH GIFTING ILLEGAL!
With that said, there have been forms of cash gifting that were considered illegal pyramid schemes by the SEC and the IRS because of the way the programs were structured and the fact that the people who created the programs were the ones who collected most of the cash. These programs, along with the many other investment schemes out there, were operated in many instances like companies and solicited individuals to send them money in order to join. Those people would in turn have to recruit other people to join in order to make money and pay the commission or referral fee to the person that recruited them. All the while, the person or persons at the top of the pyramid continue to receive commissions from everyone below them. All the money basically flows upward. This is CLEARLY an ILLEGAL activity, designed to make the people on top very wealth while defrauding the people on the bottom with the promise of high-end returns and continuous cash flow.
There are other aspects that would render a cash gifting program illegal, such as a program that promotes itself as an INVESTMENT or a BUSINESS OPPORTUNITY. Investments fall under the Securities Act, which requires strict compliance to certain rules and guidelines. Gifting of money does not fall under this definition and cannot be legally termed as an investment. Also, under state laws, a business opportunity is a contractual obligation between a BUYER and SELLER. A two-way exchange of goods and/or services. Cash gifting is “not” a two-way deal! Cash gifting only flows in one direction, from a GIVER to a RECEIVER. The person that gives a cash gift will receive absolutely nothing from the person receiving the gift. There is no exchange. Nothing from the RECEIVING end flows back to the GIVING end. Therefore, cash gifting cannot legally be called an INVESTMENT of a BUSINESS OPPORTUNITY. Most cash gifting programs adhere to strict guideline concerning the language involved with this activity. A gifter should avoid the use of terms like “EARN” or “MAKE” when referring to RECEIVING money. A participant in a cash gifting program does not make or earn money. They receive a gift with no strings attached.
What makes Cash Gifting legal, as it is practiced today using the 1-Up Structure, is one thing, THE IRS TAX CODE! The tax code itself legalizes cash gifting and is there for a reason. By definition, “Cash Gifting” is the act of privately or publicly giving another person or an entity a declared sum of cash and to give it freely without coercion or consideration. Cash Gifting is not a loan or a payment for goods or services. IT IS A PRIVATE ACT OF CHARITY. The amount that is given or received can vary, but to be tax exempt it cannot exceed ,000 (per IRS Tax Code Title 29 and Publication 950, effective January 1, 2006, to any one person within 1 calendar year. The section of the tax code which covers gifting is HERE. If you intend to start cash gifting study it, learn it, memorize it! A properly structured Cash Gifting program is based on the constitutional right of all individuals being able to gift property, assets and/or cash to anyone they wish as long as it is done in a way that follows IRS tax code guide lines. The IRS tax code protects both the giver and receiver equally. Most people who cash gift do not report these gifts and have not legal obligation to do so. However, if getting in trouble in the IRS is what concerns you most, JUST REPORT THE GIFTS! It doesn’t mean you can’t participate in cash gifting. Get with the program!
Shaun Anderson (aka the Cash Maestro) is founder on Creative Wealth Systems, Inc. For more information or to get started with Cash Gifting, visit http://www.simplyezcash.com/
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