Everyone is wondering about the legality of Cash Gifting Programs and whether or not they are a legitimate business opportunity.
In a nutshell, yes and no. According to the IRS, there are some restrictions that must be followed in order for a cash gifting program to be legal. The first order of business is not to expect anything in return.
The legal definition of Cash Gifting Programs is as follows: It is the act of privately or publicly giving another entity or person a sum of cash or item of real value that can be readily exchanged for cash, without any prior or future consideration and without coercion in any form or fashion.
According to Internal Revenue Service Publication number 525, Cash Gifts and Inheritances are outlined as follows:
Generally, property you receive as a gift, bequest, or inheritance is not included in your income. However, if property you receive this way later produces income such as interest, dividends, or rents, that income is taxable to you. If property is given to a trust and the income from it is paid, credited, or distributed to you, that income is also taxable to you. If the gift, bequest, or inheritance is the income from the property, that income is taxable to you.
The link to the Internal Revenue Service Publication is:
This is very important to understand. The initial gift under $12,000.00 is not income taxable by the Federal Government. Only the interest or dividends that are produced from the gift would be taxable.
Many Legal Cash Gifting Programs have come under fire due to some inappropriate business practices. It is very easy to see why the different programs have failed in the past.
First, Cash Gifting Programs are supposed to be simple to understand. There are levels to get involved, from as little as $500 USD to $10,000 USD. In addition to that if the program is set up correctly, there is an administration fee that goes along with the gift to the third party administrator or company sponsoring the program.
Legal Cash Gifting Programs have been falsely accused in the past as a Pyramid or Ponzi Scheme. Typically, a pyramid scheme is one that is set up with a promise or promotion of an extremely high return. If you will remember what rule number one is, a Cash Gifting program is designed with no expectation or promise of any type of result or income.
There are no recruiting demands in a properly set up program. Usually it is set up so that the first person that agrees to get involved with the program is referred to your sponsor and then all people that you refer are passed to you.
Everyone who gets involved with the program must pass up their first paid referral to their individual sponsor. Therefore the program continues in perpetuity once it has been properly set up.
Marketing on the internet can be quite a difficult and tricky business to set up if you do not know what you are doing. If this program interests you, you should take a look at a program that has been around a few years.
You should be able to talk to your sponsor if you want to chat or need help getting started. Your sponsor should be able to lead you down the path of a good marketing program or lead generation system.
Remember as with any program you get what you put into it. If you are willing to tell others about your program, or at least direct others to your webpage, you should be able to do well with Legal Cash Gifting Programs.
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