Cash gifting legal?

Cash Gifting Legal & IRS Legality

Simply Stated: YES,Cash Gifting itself does not break any U.S. laws at all. However, not all cash gifting programs are legal.  The IRS guidelines on gifting are very specific as you saw on the previous page. The FTC has nothing against the concept of cash gifting, except for one program that has been shut down in which people participated in a pyramid scheme and promises were made to prospects.

DISCLAIMER
I am not a tax accountant or a lawyer and I don’t make any promises or guarantees, and you are given all of the information you need to know before deciding to par up. There won’t be hidden fees or costs. Everything is openly explained to you in this website, so there are no surprises and for instance, we are well within the law.

This is probably the number one question that pops up when people start to see the lucrative potential with this kind of activity, and it’s certainly the first thing that I wanted to know too.

In researching this activity, I learned that both American and Canadian citizens and other citizens around the world have the right to gift property, cash and other assets. The U.S. gifting rules are found in the IRS TAX CODE, Title 26, Sections 2501-2504 and 2511.

And just know that those rules are focused on the tax liability of cash gifts. You should consult your CPA or Tax attorney for a full and comprehensive review and advise about how to treat cash generated from gifts in your specific tax situation.

By reading the law you find that one or more individuals can give a gift to another individual of up to $12,000 each per calendar year without any tax liability to either the giver or receiver of the gift, because the giver is using “after tax” cash to make the gift. In other words, the tax on that money has already been paid.

Again, for more complete information and advise on the tax rules regarding gifts, consult with legal and accounting professionals. This site is NOT written by legal experts or accounting experts and in no way should this information be taken as the delivery of legal or accounting advise.

Properly Structured Cash Gifting Activities are NOT PYRAMIDAL in structure.There is no “fat cat” at the top benefiting from others. A person starting today can easily generate more money than some other person who has been in for more than a year. There is no pyramid. It’s strictly between YOU and the person who you invite to learn about your cash gifting activity and sharing club. If they like the concept, they may agree to give you a cash gift. Direct. Person to person. No pyramid anywhere.

In the past, most cash gifting programs were structured with an attempt to copy or “clone” the current Multi-Level Marketing type of compensation plans. There were weird “cycling” systems where the new “gifter” would be required to invite a number of new enrollees, BEFORE they were “ranked” and able to receive any gifts themselves.

Other programs were structured using “Matrix”, “Binary” or other complicated form of “multi level marketing” style of compensation programming. BY DEFINITION THESE TYPES OF STRUCTURES ARE IMPROPER to Cash Gifting and potentially Illegal.

The fact that people are using websites, email and other forms of inviting and communication is just a fact of the leveraging power of communication that you have available these days. Instead of having to personally explain the concept, process and details to people one by one, in person (and potentially not explaining it correctly) we now have the ability to communicate to thousands, and in fact, millions of others around the globe with the use of web sites, recorded information calls, and audio/videos.

So giving a gift of cash to someone, be it a friend, family member or a stranger is legal according to IRS code. Again, there’s no specific nation-wide law that I’ve been able to find to say that cash gifting is not legal.

Now, that being said, it’s important to note that not all Cash Gifting programs may be legal in their structure. Certainly there are some that may not be. Unfortunately, there are still some “old school” Cash Gifting programs out there (mostly offline) that weren’t structured properly in order to sustain their efforts for any considerable length of time, and some of them use an illegal pyramidal type of structure. Consequently, many of these types of mostly offline programs in the past were closed by the feds because of this illegal “ever-widening base” pyramid structure and gave Cash Gifting a bad reputation.I think The Peoples Program is the best cash gifting program out there right now.

Churches, civic groups and people from around the world have participated in organized gifting for hundreds of years. Laws state that it is legal for individuals to exchange gifts. In the United States we have the Preamble, the Constitution and the Bill of Rights to protect a private citizen’s rights to earn, pay taxes and give away property and cash as long as it is done according to the laws and codes of this country.

Thoughts:
Cash Gifting is a private activity in which individuals gift each other money. There is nothing being sold, nothing being bought, there are no transactions and this is not a business. It is a private activity to which you need to be invited. If you’re looking for a home-based opportunity to generate income, cash gifting has almost 500% better conversions than any direct sales or MLM opportunity out there. This means that cash gifting is more appealing to the masses, they are not being sold anything and they don’t need to sell anything to anyone either.

The Gifting Statement and Non-Solicitation forms signed when sending gifts are binding between two individuals and the following guidelines must be met.

§  They must provide statements between the giver and the receiver that the gifts are given with no expectation of any returns.

§  They must provide statements between the giver and the receiver that gifts were unsolicited and that the giver approached the receiver inquiring about the opportunity to give.

§  There should be a statement between the giver and the receiver acknowledging that the giver accepts he or she is not making an investment.

§  And there must be a clear understanding between the giver and receiver that the giver is not guaranteed any benefits for making a gift.

Get the gifting exposed report to learn more.