This is probably the number one question that pops up when people start to see the extremely lucrative potential with this cash gifting program, 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 cash gifting 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.
By reading the law you find that one or more individuals can give a gift to another individual of up to $14,000 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.
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. If they like the concept, they may agree to give you a cash gift. That is Person to person. No pyramid structure here.
In the past, most cash gifting programs were structured with an attempt to copy or "clone" the current multi-level marketing (MLM) 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 and misleading forms of "multi- level marketing" style of compensation programming. BY DEFINITION THESE TYPES OF STRUCTURES ARE IMPROPER to cash gifting and potentially illegal. There is a big difference between that old type of cash gifting activity structure, and the current properly structured activities.
This Is Not MLM.
There are no product purchase requirements. No upline. No downline. No Matrix to fill. None of those confusing and misleading MLM pay structures. In today's properly structured gifting activities, there are no ranks, or cycling or positions. You as a member of a private sharing club such as I belong to can invite others to learn about what we are doing, AND when a person you invite decides to join, they gift you directly. No fat cats, no middlemen.
So giving a gift of cash to someone, be it a friend, family member or a stranger is legal according to IRS code. Now, that being said, it is 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 that are not 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 programs in the past were closed by the feds because of this illegal "ever-widening base" pyramid structure, which in turn gave cash gifting a bad reputation.
However, in recent years, with the creation and development of the linear "1Up" structure, things have changed. 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 (as 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).
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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.
Now that you know that cash gifting is perfectly legal, Please click on the link below and read about one of the best cash gifting program ever developed!
Don Evans