This will discuss the Legality for a money leveraging system called Cash Gifting.
There has been a lot of discussion regarding legality of cash gifting and there is no doubt, this debate will continue on for some time.
Short answer to question "Is cash gifting legal?" it depends. Make no mistake, there has never been any question that the gifting of cash from one person to another is absolutely, without question, 100% legal. Nothing illegal about it. That's always been legal. The "legal cash gifting" question comes about when you examine the methods used to gift cash.
Various cash gifting programs are out there. They are different. Some use similar methods and some don't. This is where the debate originates. For example, if a cash gifting program is structured in a pyramid fashion, whereas top level participants receive money from an expanding lower base, like those commonly found in multi-level marketing, then the legality of that program could be called into question. Multi-Level means more than one level, as in two or more participants away from the recipient.
There are other aspects that would render a cash gifting program illegal, such as a program that promotes itself as an INVESTMENT or a BUSINESS OPPORTUNITY. Investments fall under the Securities Act, which requires strict compliance to certain rules and guidelines. Gifting of money does not fall under this definition and cannot be legally termed as an investment. Also, under state laws, a business opportunity is a contractual obligation between a BUYER and SELLER. A two-way exchange of goods and/or services. Cash gifting is "not" a two-way deal!
Cash gifting only flows in one direction, from a GIVER to a RECEIVER. The person that gives a cash gift will receive absolutely nothing from the person receiving the gift. There is no exchange. Nothing from the RECEIVING end flows back to the GIVING end. Therefore, cash gifting cannot legally be called an INVESTMENT of a BUSINESS OPPORTUNITY.
Most cash gifting programs adhere to strict guideline concerning the language involved with this activity. Avoid the use of terms like "EARN" or "MAKE" when referring to RECEIVING money. A participant in a cash gifting program does not make or earn money. They receive a gift with no strings attached. That gift is usually in the form of $100 dollar bills.
It is not illegal to receive a cash gift, nor is it illegal to give a cash gift. in fact, if you go to the IRS website and search publication 950, you will find that the Government clearly allows cash gifting and even states that you can gift cash to any number of individuals, up to $12,000 each, without having to declare or pay taxes on those gifts!
People give money to other people all of the time. birthdays, graduations, handouts and charity. Nothing about the act of giving and receiving cash is illegal. However, the manner in which a cash gifting program is structured is at the heart of the issue. www.DailyCash2U.info
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