This article is a no nonsense approach to learning the truth about Cash Gifting programs and disposing of the "myth's". I've been hearing all kinds of crazy stories and getting calls from people wanting to know the truth behind these programs, so I decided to investigate. Im sharing the surprising TRUTH about Cash Gifting programs to assist others in getting the FACTS, not the hype and half truths other marketers WONT tell you and dont want you to know. Let me define it for you first so we are all on the same page, then Ill break it down in laymans terms for you to understand: Cash Gifting can be defined as: The act of privately or publicly giving another person or entity a declared sum of cash, (as a gift) and giving it freely without coerce or consideration.
There are quite a few cash gifting systems out there, but the most legitimate ones will require documentation provided by that cash gifting program, it will be done in a way where the inviter has to actually speak to the invitee at some point, and it will have typically been in existence for a solid length of time. Cash gifting systems that are based on honesty and integrity use what is known as the EZ1Up program. Documentation must be involved and the appropriate tax codes must be followed. The REALITY is: If structured properly, the 1-up gifting programs are legal. Since Cash Gifting is a private activity and NOT A BUSINESS, there doesnt have to be a product. The United States IRS Tax Code, Section 26 defines explicitly the taxation responsibilities that apply to cash gifting programs.
The IRS Tax Code gives us the rules involved with gifting. Please visit http://www.irs.gov/pub/irs-pdf/p950.pdf?source=ttcom4home1. In essence, you can receive up to $11,000 from any number of individuals without any taxation implications. In excess of $11,000, you are required to report the monies received as income and pay a regular income tax on them. Its legal and lawful for one person to give a gift to another person with no tax liability on either party if the gift does not exceed $12,000 in any calendar year. For gifts over 12,000, the GIFTER is required to file a Gift Tax Return and MAY also be liable to pay Gift Tax. The Constitution gives us the right to do it and The IRS Tax Code tells us how to do it. The IRS does in fact allow cash gifting as a way of reducing the tax burden on your estate, but Tax Code Title 26, Sections 2501-2504 and 2511 makes it completely clear that in order to qualify as a gift, the money you give to someone else must be given with absolutely no expectation of a return. If you want to give more than $12,000 to someone (or more than $24,000 to a married couple), the IRS requires you to file Form 709, and you MAY be liable to pay Gift Tax on any amount over the allowed figure. No one who receives cash as a gift is ever required to pay taxes on it.
In the US, the Legal foundation is based on two well known documents: the IRS Tax Code and the Gift Tax Law. In researching gifting programs, the illegality lies in how the program is structured. ○ If the structure involves a central collection and distribution point, it can be deemed illegal. ○ If distributions are paid out of a pool and depend on new contributions to fulfill promises, then the activity may be deemed illegal. ○ If promises of guaranteed returns are made or insinuated, it can be deemed illegal. ○ If the activity is referred to and promoted as an investment or a business, it can be deemed illegal. Nothing in the Tax Code makes the giving of gifts of any amount legal or illegal. Show me the legal code where it states that it is illegal for me as a private citizen to send my property (be it cash, software, books, furniture, clothing or any other property) to another private and free individual of my choosing for any reason. It's more scary to me to think that some people in our free world actually believe that giving your property to others SHOULD be illegal.
It is of the utmost importance to understand gifting is strictly between the giver and the receiver, but structured levels are created in these activities to facilitate the integrity of the activity and to make them sustainable, simple and easy to understand. This is a lot different than any other work at home opportunity you have came across, because cash gifting really is on an island by itself. Understand this and repeat it over and over again, cash gifting is not something that can be left alone and expected to work. You may find some of this information that I write a little surprising and less hyped up than that of some of the other articles or ads, but I strongly believe that being 100% truthful is more powerful than telling you I make $100k per month and that you will too. Any home based opportunity needs a proper plan of operation to be a success, even a Cash Gifting program. Ive realized that helping people is very rewarding, and the laws of attraction are in our favor when you are constantly giving. As with anything else in this life, you get out of it what you put into it. If you put nothing in, you get nothing back, so dont start screaming SCAM if you havent done a darn thing to help it along.
About the AuthorDo yourself a favor, get the FACTS and the TRUTH, visit http://www.leaderofprosperity.com, you'll get EXACTLY what is outlined by the IRS Tax Code and the Gift Tax Law!
- AllianceQ on Target to Fill All Exclusive Member Slots
- Vicki Roberts Sets the Record Straight on Behalf of Jermaine Jackson Regarding Brother Michael Jackson
- Calculating Wage Losses Under the Pennsylvania Workers' Compensation Act
- A Summary of Recent Pennsylvania Civil Appellate Court Decisions (December 2008)
- When Apartment Building Elevators Break Down It's Elderly And Frail Tenants Who Often Suffer Most