Is Cash Gifting Legal or is it Just another Scam?
Read More: If you are looking for an opportunity to provide you with financial freedom, there are many opportunities that you could try. One of the best opportunities that people have been using to achieve their financial freedom and security is cash gifting. But is cash gifting legal? Let’s find out.
According to the IRS, there are some restrictions that must be observed so that a cash gifting program would be seen as legal. In other words, the answer is both yes and no. So for the cash gifting program to be entirely legal, it must comply with the restrictions that the IRS has defined. The first thing that a cash gifting business should do is not to expect anything in return for the cash that they have just given.
For people who are wondering about is cash gifting legal, the IRS has given a legal definition what cash gifting programs is all about. It is thought of as the act of privately or publicly giving another entity or person a sum of cash or an item of real value that could be readily exchanged for cash. The cash should be given to people without future consideration or coercion.
Usually, cash or other items that you receive as gifts are not included as income. Therefore, it is not taxable in any way. But if the item that is given later produces income, the person who received that gift will be liable for the taxes. You should definitely get to understand this before you engage in a cash gifting program.
There are many controversies surrounding cash gifting programs. Some of the programs had an inappropriate business practice, which is why they have been accused as being illegal businesses and scams. Some of the programs have even been accused as Pyramid or Ponzi schemes. You should definitely do your homework to be able to come up with a good choice of cash gifting programs.
Cash gifting programs usually do not require any recruitment if properly set up. Basically, the first person that gets involved with the program is first referred to your sponsor. After that, all the other people that have been referred will then be passed onto you. Before starting out with a cash gifting program, it is quite important that you get to talk with your sponsor first. Ask him is cash gifting legal. This way, you would
One of the tools that have been used with these cash gifting programs is internet marketing. Although it has revolutionized the way people do business, it could be quite tricky to set-up an internet business. If you want to be successful in cash gifting, you should look for a program that has been around for some time.
You could definitely get to help many people with cash gifting programs. Before you go out and engage yourself in a program, however, you should make sure that you do your research. This way, you would be able to know is cash gifting legal. With a legal work, you would be able to earn a great income without worrying about the risks.
Preston is an Online Entrepreneur teaching people how to build a stable life long income using offline and online internet marketing systems without wasting time and energy following all the hype.Go here to research all about the Hidden Facts about Cash Gifting programs .</a>.To find out how you can have quality prospects chasing you 24/7. Get Free Training on how to generate Quality Leads .
Views: 492 | 
Comments: 2 
About the Author: Preston Rodrigues
Member Since: 05/16/2008
Industry: Business Opportunities
Primary Web Site: http://why.BestMLMAlternative.com/?t=bnwkr
Twitter: promillionaire
Facebook: http://facebook.com/preston.rodrigues
Ouch Preston!
The IRS tax code does not make a revenue source legal or not, it just taxes it. The famous case is where Al Capone went to jail for not paying taxes on his illegal income.
Even so, the IRS cash gifting rules were not designed for an organized cash gifting business.
Look me in the eyes and tell me that your cash gifting program is not a business :)
As for recruiting, call it what you want, but cash gifting needs recruiting. Your article is your way of recruiting.
In my opinion you are just building a house of cards if your business is cash gifting.
Cash gifting is illegal
The pretentiousness and blindness of gifters will never cease to amaze me. Cash gifting is illegal folks! For three reason:
1. If your grandmother gives you a $3,000 gift from the goodness of her heart, it's a tax free gift. The moment you attach a marketing system and a recruting campaign and accept money from a stranger, is no longer a gift. It's a business, even if you make people sign the disclaimer that they are giving you an unconditional gift. In reality, you are giving them training, time, a system, tools and other "valuable" things. Would you give them those things if they didn't give you money? Would they give you the money if you didn't give them training and tools? No, they have an expectation. A tax free gift must be unconditional. Do you see why it's a business transaction?
2. MLM legal rules prohibit companies and individuals to exchange money or a product sale for a position in an MLM plan (two levels or more). Distributors must be allowed to join an MLM free or by purchasing a non commisionable kit. They cannot enter the plan by purchasing a commissionable product or tools or training.
Most gifting programs have a 1up or 2 up compensation plan with infinity legs. This is an MLM plan Mr. gifter! And, most gifting programs won't let you join the plan unless you pay money to your sponsor, which is an illegal practice.
3. Most gifters claim the money is tax free. You're kidding, right? My CPA (former retired IRS agent) said to me: don't ever ask me to compile and sign your tax returns if you do organized gifting as a business online.
Not only gifting is illegal, but is unethical because it deceives people who naively join without knowing these facts. People are looking for real products and leadership not money merchants.
I would never do gifting. What would I tell my grandchildren one day if they ask me how I earn my money? I roam around the Internet asking people for gifts and hope the FTC doesn't catch me?