Is cash gifting legal?

 

Absolutely. People from around the world have participated in organized gifting for over 300 years, including churches and civic groups. 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.

 

This might be the most important question on your mind, especially if you're finding out about cash gifting for the first time. Because of its amazing potential to create incredible wealth, this is certainly the first thing I wanted to know because I have absolutely no interest in getting into any sort of legal hot water; as I'm sure you don't either.So this is what I've found out about cash gifting:

 

While researching this activity, it's imperative that you keep in mind there's nothing verbal or written that tells us what IS legal, only laws which state what IS NOT legal.

Research online and you'll find there's no governmental or legal documentation stating that cash gifting is illegal. What you'll discover is people expressing their own opinions not based on facts.

 

Through diligent research and years of experience, I have yet to find anyone who can show me a law, in black and white, stating cash gifting is illegal. As a matter of fact, I learned that both American and Canadian citizens have the Constitutional right to gift property, cash and other assets, as do many other countries.

 

In the United States we have the Preamble, the Constitution and the Bill of Rights to protect each 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've 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. It's said, these forms are used 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 codes. Again, there's no specific nation-wide law that I've been able to find to say that cash gifting is not legal.With 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 federal government 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 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 no 1 up cash gifting program, there is no qualifying process, no fancy sounding positions to sell, no captain at the top, and there's no ever-widening base to the structure like what is found 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.You are more than welcome to research further if you wish.