Is Cash Gifting Legal
By Merudh Patel
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... after all, I have no interest in getting into any type of legal hot water, and I'm sure you don't either, so here's what I found out...
In researching this activity, it's important to keep in mind that there's no book out there that tells you what is legal in our society, only what is not legal.
If you do your research online, you're going to see there's really nothing saying that cash gifting is illegal. Most of the time it's people expressing their personal opinions, not facts. And after years of experience and thorough research, no one has been able to show me the law in black and white stating that giving a cash gift is illegal.
In fact, I learned that both American and Canadian citizens have the Constitutional right to gift property, cash and other assets. Many other countries participating in cash gifting also have very similar gifting laws.
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's done according to the laws and codes of this country. The U.S. gifting rules are found in the IRS Tax Code, Title 26, Sections 2501-2504 and 2511.
In 2008 in the United States of America, the law states that one or more individuals can give a cash 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 tax on the gift has already been paid.
I also found that most well organized Cash Gifting programs require each participant to use some form of a Gifting Statement and/or Non-Solicitation form, which when signed, become binding agreements between two private individuals. These forms are used, it's said, to ensure the longevity and legality of a gifting program.
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.
However, in recent years, with the creation and development of the linear "1Up" structure, things have changed and more and more people are benefiting through the use of these types of programs than with any other Cash Gifting structure in the World.
With a 1Up type of Cash Gifting program, there are no fancy sounding "positions" to sell, no captain at the top, and there's no ever-widening base to the structure (In a typical illegal pyramid, where only those at the top profit, while those at the bottom never reach the top and invariably lose their money).
About the author
Merudh Patel is an online marketing entrepreneur from NJ who is studying at Rutgers University at the moment and successfully mentoring others to achieve success in internet marketing using the best online opportunity - Cash Gifting.
Learn more about Cash Gifting at: MyCashRevolution.com from http://www.FreeArticlesAndContent.com
|
|
Copy This Article
For FREE!!!
You can use this article and copy it on your own website
for free! All you have to do is make sure the article
is copied with no changes and includes the "About
The Author" text. Also please ensure that all url's
are hyperlinked according. Thank you. |
Link To This Article - And We'll
Link Back To Your Website!
You are more then welcome to link to this article! All
you have to do is copy this webpage address from the
address bar and create a link on your website. Please
use the title of this article for your link text. Please
get in contact once you have linked to this article
and we'll link back to you! Thank you. |
|
|
|
Other great articles from this category...
|
Related Sites
|
|
