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. "Click here" for this document.
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).
Clint Steiner
303-520-4509
"I Wish Above All Things That You
May Prosper and Be In Good Health"
