Cash Gifting Expert Answers the Question: Is Cash Gifting Legal?

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(Free-Press-Release.com) September 11, 2008 -- For decades there have been ideas on how to make money with the masses. The idea is to have a modern-day “Roundtable” where everyone seated at the table benefits.

Sounds great, but is it legal?

Cash gifting is often lumped together with pyramid schemes. Everyone squirms when they hear “pyramid” and this is unfortunate for legitimate cash gifting systems because it gives them a bad reputation. It is sort of like getting blamed for something your second-cousin-twice-removed did. When examined, cash gifting systems are structured completely different than any pyramid scheme. In fact, it is the simplest structure… a straight line. In a cash gifting system, gifts flow along this line, instead of being funneled upwards from a broad foundation to one individual. It is this funneling effect that eventually causes most pyramids to collapse, leaving those at the bottom without anything. For this reason pyramids have been outlawed. The simplicity of the straight-line cash gifting systems is what makes them effective, efficient and operate without the fear of collapse.

Legitimate cash gifting systems employ what are known as Gifting Statements and Non-Solicitation Forms. These forms are used by everyone involved and clearly lay out what each individual is giving or receiving. The basic interpretation of the statements is that the giver is not purchasing anything and the receiver is not selling anything. Quite simply it is just that, a gift. This is understood and acknowledged by both parties.

Opponents of cash gifting systems state that it is illegal because of tax laws. A quick examination of IRS tax guidelines tells a different story.

According to the IRS, for the 2007 tax year, any individual may receive from any single person a gift not to exceed $12,000 without incurring tax penalties. It goes further to explain that a gift can come in the form of money, property or the like; however, for this article we will focus on monetary gifts. Also within the IRS guidelines there is a limit totaling $1M that may be received by an individual in a given year before incurring tax penalties.

The vast majority of participants in cash gifting systems give and receive amounts much less than the individual limit of $12,000. Most of the gifts range in value from $150 to $5,000. With these values in mind, it is easy to see that most, if not all, participants will far beneath the ceiling set by the IRS.

With everything in place, including IRS guidelines along with the Gifting Statements and Non-Solicitation Forms, a legitimate cash gifting system is completely legal and individuals participating should have no fear of the “Boys in Blue” knocking on their door.

To learn more about cash gifting, please visit: www.TheRealCashCow.com

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