Truth About Gifting: Is Cash Gifting Legal Or Is Gifting A Scam?
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Cash Gifting Can Be Profitable (So can selling drugs) But The Risks Are Very Real. With So Many Legitimate Ways To Make Money Online, It Is Insane to Take These
Gifting Programs Are Sprouting Up All Over The Internet-Many are Getting Rich BUT Some WILL go to jail. It Has already happened.
There are a number of programs out there, The Overnight Cash System, Elite Activity, Charity Begins At Home, Q, QBox, Cash Gifting, Private Cash Gifting, Cash Gifting Angels, Cash Gifting King. All are Promoting Some Form Of Cash Gifting as a legal method of receiving loads of tax free cash. These programs are growing in popularity every day and some people are in fact making wads of money, but there is not enough money in the world that is worth risking jail, your liberty, your reputation and ultimately your long term financial and personal freedom, especially when you can use the same skill set and effort required to make money from "gifting" to make tons of money without these risks.
As a retired attorney, and a successful home business coach, I felt obligated to write this blog to help dispell some of the misinformation out there. I hate to see so many people risking their personal freedom as well as their hard earned money on these programs. Read this carefully before you do something you will ultimately regret. There are many legitimate legal ways to make money.
Please note: I am not giving legal advice here. If you want to get legal advice about any gifting program you are looking at, you have two choices. One, speak to a competent attorney on your own. Speak with someone who is familiar with the Federal Trade Commission. (The illegality of gifting has nothing to do with the IRS) Two, go to the attorney general in your state. Show them everything you have about your potential program, and ask for their professional opinion. Ask whether they think that engaging in this activity is a prosecutable offense. Ask if someone brought this to their attention, whether it was something they would choose to prosecute. I'm guessing most of you will not do that...because in your gut you know the answer. DO NOT Rely on a statement on some website that some anonymous attorney has determined that it is legal.
Likewise, if you want to know whether any money you receive as a resulting of your participation in your gifting program is taxable, you should discuss this with a tax attorney or seek the answer from the internal revenue service. I am serious. If you are successfully promoting gifting, take some of the money you are receiving and talk to a tax attorney. Do not get your advice from some tax preparation franchise. They are trained to file taxes for empoyees, not entrepreneurs. And make sure that you put some money away for a good criminal attorney as well. Do not spend all your "gifting" money...you will need it later.
First, let me say this: I do not believe there is anything immoral or unethical about gifting programs in theory, assuming that no false promises or misrepresentations are being made. BUT From the numerous websites I have reviewed, this is not the case. Instead these websites rely on misstatements of the Internal Revenue Code and make comparisons to charitable contributions which are misleading too. FACT : People should know going in that making money this way will require effort on their part, and since most people are not comfortable asking for money, most people will fail at this. The people who succeed in getting money through cash gifting programs treat it like the business that it is.
My Personal Opinion On Whether "Gifting" Should Be Legal Doesn't Count and Neither Does Yours
Personally, I am a liberterian and I believe that we would all be much better off with less government and more personal accountability. If I were Queen, grown people who wanted to voluntarily engage in any gifting programs, or any so called money "schemes" would be free to do so. I believe that consenting adults should be free to engage in any activity they choose that does not cause harm to others.
Of course, the problem with all of the gifting programs out there is that they are not being truthful. While many of the people promoting these programs actually believe that what they are doing is legal, the people who are creating these systems and producing the websites that are being used to promote them know the truth. They know that people have gone to jail and that old programs have been shut down, and new ones have been created, usually by people with some relationship to the shut down programs.
Likewise, the promoters know that the only way to make money with gifting is to treat it like a business. But their website ad copy is specifically designed to lure in average people with no business background who are not confident enough to start a real business. They know that these people do not have a chance in a million of succeeding in gifting. Only those who treat it as a business have a chance to succeed. And even then...ask yourself this...How many hours a day every day do you want to spend having this conversation with the people you are trying to get to join your gifting program?
The conversation that starts with is it legal? Every person with half a brain who comes to your gifting website will ask this. The fact that you are reading this blog tells me that you are asking yourself that question. Unless you do what I suggest and do your own due diligence in checking out the legalities without relying on the program promoter, if you tell someone that it is legal and they believe you, are you prepared to accept the consequences of that statement. WIll you be able to sleep at night? How will you feel when someone you know gets arrested or faces the IRS all because of something you recommended?
So, while I believe that it is conceivable to have a gifting program that could be run in a moral and ethical manner, the reality is that since we have laws here in the U.S.A. and in most every other country that are designed to protect "consumers" from their own gullibility and foolishness...the fact is that these "gifting programs" are illegal. When people talk about illegal "pyramid schemes", this is the exact activity that the laws are designed to prevent.
I absolutely believe that you can make boatloads of money with cash gifting. Just as you can in any number of businesses online or offline. In fact, I admit that I have been tempted more than once to take my internet marketing experience and apply it in the gifting arena. I have no doubt that I could apply what I know about internet marketing and make a fortune with gifting....But I also know that the risk of ultimately suffering criminal and monetary consequences is real. And for me personally, the risk outweights the potential reward. Particularly because there are so many unquestionably legal ways to make a fortune using the same skills required to be successful in cash gifting.
The truth about the tax code "making it legal."
My concerns about the people who are promoting and creating these gifting programs is that they misrepresent the Tax code, and take advantage of the fact that most non wealthy people have no clue about Gift taxes.
I see statements in website after website stating that the Internal Revenue Service clearly makes it legal to make gifts up to $12,000 a person. And adding that everyone has the legal right to receive gifts up to $12,000 without paying taxes. I do not intend to go into a lengthy explanation of gift taxes except to state that this is an area of tax law which goes hand in hand with estate planning. The issue of gift taxation is a subject dealt with by wealthy families who want to pass their assets to their children and other family without having to lose most of their assets to the government through the payment of estate taxes. Gift taxes are paid by the gift giver. If your wealthy parents or a wealthy friend wants to give you $500,000 as a true gift, I promise you that they will not be breaking any laws. Your wealthy friend or relative will have to pay gift taxes on the amount of the gift that exceeds the yearly allowance set by the Internal Revenue Service. But they will not be breaking any laws. And neither will you. In fact you can receive "true gifts" of any amount without breaking any laws.
Nothing in the Tax Code makes the giving of gifts of any amount legal or illegal.
First, with the exception of political contributions, and other specific instances like gifts to public officials who have authority to make decisions, ie. bribery, people are free to make "gifts" of any amount to anybody or any organization. Giving gifts of any amount except for those specific exceptions is entirely lawful. Those exceptions do go to the heart of why gifting programs are illegal. The real issue is whether they are in fact gifts. The reason that there are laws which limit the amount of political contributions any person or group can give, or the reason that it is unlawful to give gifts to police officers or judges or any public employees is that there is a question as to whether it is a gift, meaning that there is no expectation of any benefit to the gift giver (other than the warm fuzzy feeling that goes with giving). If you give a "gift" to a politician, the question becomes whether you are simply giving a gift OR are you giving money with the expectation of some benefit to you. (Gift = no expectation of return Bribe= expectation of benefit = if you are caught you will go to jail)
THE Reason that "Gifting Programs" are illegal is this: By definition: A "GIFT" is money or services or anything of value which is given freely with no expectation of receiving anything in return.
The Fact that you and everyone you promote your "gifting business" to signs a piece of paper stating that they are freely giving a gift and are expecting nothing in return DOES Not MAKE IT A GIFT. The Fact that you sign a piece of paper that states that you are not engaging in a business does not change the fact that you are engaging in an activity with the express purpose of making a profit which is by definition a business.
I hate to be the bearer of cliches, but if it looks like a Duck, and walks like a Duck, and quacks like a Duck....signing a piece of paper that declares it a Cow does not make it so.
Prosecutors, Judges and the Internal Revenue Service will not care what your piece of paper says. They will look at your actions, they will look at the reasonable intentions of anyone doing this. They will look at the websites you are using and at the ads you are posting. If turning any money making activity into a tax free gift was as simple as signing a piece of paper that states that you are giving a gift, then every business out there could do the same. Have you ever heard of Barter. People exchange services and goods every day...but you can't just sign a paper that says I am giving this service as a gift and make it so.
If you truly want to give a gift...go ahead. In fact, while I will never risk my liberty to engage in any gifting programs, I would love to receive gifts and will be glad to accept any gifts from any of you who have recently been inspired to be a professional gift giver. I will gladly accept gifts of any amount...unlike most of the programs out there, I do not ask for gifts in specified amounts. You will not have to pass up any gifts. I was discussing the issue of gifting with a highly competent attorney I know, and I jokingly suggested that I could contact all the people who are promoting their gifting programs and suggest that they could send me a gift as evidence that they are not engaged in a business, but just truly are into gifting as a way of life. Giving a gift to me, even though I am not part of their program could be evidence that they really and truly just like to give gifts....and I could testify on their behalf when some attorney general comes after them....BUT oops I just ruined it...now its not a gift.
So, I am still open to receiving gifts, but I cannot agree to testify on your behalf.
Let Me ask you this...Did you learn about gifting from a person or website who more or less just told you...hey its better to give than to receive...I love giving gifts and I hang out with a bunch of other people who also just love giving gifts, and if you want to join our organization you can give gifts too. We are just a bunch of people who love to give, and if you join our private club, who knows... maybe some of our members who just love giving without expecting anything in return (definition of a Gift) will just randomly give you a gift.
OR DID YOU RESPOND TO A WEBSITE THAT PROMISED YOU A WAY THAT YOU COULD MAKE BOATLOADS OF TAX FREE MONEY ?
Ask yourself this...if you are joining a freewheeling group of "gift givers" why do you first have to Make a Gift to join. Why do you make 1 "gift" and then receive unlimited "gifts" Why is it that you only make 1 gift or maybe more to qualify for greater "compensation" HINT-True Gifts do not come with compensation plans and different levels of participation. When was the last time you gave a true gift and the gift receiver set out rules and requirements about how much, how to advertise, online marketing etc. (BRIDEZILLA stories don't count!)
I have actually seen some programs that are trying to establish gifting as some sort of religious group. There are tax protesters that will tell you that the government has no right to tax you and will tell you it is legal to not pay taxes. There are groups online who tell you that due to some legal loophole, you do not have to pay your credit card debt. And now there are many people trying to tell you that "gifting" as a way of earning money is legal and tax free and maybe even a new religion. Don't be fooled.
One final note: Ask the promoters of your gifting program to back up their claims that this is legal. It's really simple, ask if they will sign a simple document that they will pay your legal expenses in the event that engaging in gifting as they are promoting it causes you to be arrested or audited.
Then just trust your instincts.
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Thank you so much for this informative article, I was approached this morning and instantly wondered why there was so much mystique involved in any presentation. Now I know! Cindy
Thanks so much, you have a lot of great information in there. I'm still intrigued by the program and need to do more research, but this is by far the best information I have found online yet. Thanks again.
I found your article truly informative and helpful.
I was approached by a "gifting" group called "LoveMyCash". If one is desperate and does not complete any due diligence than one can find themselves in terrible trouble. Thankfully I am reading the cons of most of these "offers".
I used the instruction you advise here about asking for a written document that claims they will pay any fees or taxes that may incur from this "gift".
I am asking myself also, why do these people care if I MAKE $$$.? It seems to me that they're only concern is that they are finding a way to make money off of someone else who is, well - desperate
Excellent information!!
I am quoting from the blog
" Gifting Programs Are Sprouting Up All Over The Internet-Many are Getting Rich BUT Some WILL go to jail. It Has already happened. "
Can you post who has gone to jail? Was it from the West Coast Womans THing back like 4 or 5 years ago?
I fully understand your article, and you being a retired attorney you know probably more than anyone that if the STATE AG has a debt to pay, a goal to keep, a bad hair-day, they always seem to go after internet companies. YTB (your Travel business) in california, a Travel MLM is the latest I heard of. So happens the State AG is being sued for the exact "price tag" he is suing YTB FOR....
To me, Gifting should be legal, if the admin team is out of the picture once you qualify in the Membership. To me, any MLM on the net, depending on the way a State AG reads things, or as aforementioned above, has a bad hair day, they can take down any MLM or Network marketing business, call it a pyramid, and close the doors. The safest USA company to run today seems to be a small, offline, mom and pop 5&10 shop or small "Restuarant" and online, eBay and thats about it.
My conspiracy theory is that when the NET was going to be taxed, and the Feds didnt get it, they got upset and now are on witch hunts.. Granted, some things are illegal, and should obviously be shut down, but Gifting? come on , you spend 200 to 3500 bucks, and if you dont get it back, so? Its a Gift - LOL
Any way, My 2 cents
W.G
As a retired USCMA, I have seen different cases on tax laws be argued in different settings and circumstances. Some or should I say all to me were bogus arguments. Because I HAVE FOUND OUT IS there IS NO LAW THAT REQUIRES ANY U.S CITZEN to PAY ANY INCOME TAX at all the Income Tax law itself was made illegal after World War I. Only Imigrants should be taxed on income because 1 theyre using our system, an most imigrants send most theyre money back home. Which the government has slapped an income tax on them because Billions if not Trillions of Leave here every decade most currency will never return, but that is a whole other conspiracy........("Ziegeist" look it up, America Wake Up. We are Programmed everyday to act, see, think, and speak as "They Want us"
We are Lambs.........Good Luck....An God Speed
A Watcher of Time, Thoth
A Retired U.S Constitutional Marshal Attorney - I must say for someone tooting their horn on income tax knowledge you somehow seem to overlook the 16th ammendment added in 1913 to the United States Constitution:
" In 1909 progressives in Congress again attached a provision for an income tax to a tariff bill. Conservatives, hoping to kill the idea for good, proposed a constitutional amendment enacting such a tax; they believed an amendment would never received ratification by three-fourths of the states. Much to their surprise, the amendment was ratified by one state legislature after another, and on February 25, 1913, with the certification by Secretary of State Philander C. Knox, the 16th amendment took effect. Yet in 1913, due to generous exemptions and deductions, less than 1 percent of the population paid income taxes at the rate of only 1 percent of net income.
This document settled the constitutional question of how to tax income and, by so doing, effected dramatic changes in the American way of life. " (Information excerpted from Milestone Documents in the National Archives [Washington, DC: National Archives and Records Administration, 1995] pp. 69–73.)
If you think the income from gifting will escape the watchful eye of the IRS I would not want to be the one on the receiving end of the audit when the bank accounts are questioned since Bush's implementation of Patriot act and the fact that Banks must report all deposits over a certain amount and if they are irregular in nature.
I think the attorney who wrote the article was more accurate in stating is it truly worth going to jail for? If you want to give away your money by all means you have every right but the question is do you have the right to impose your belifes through viral marketing, and asking someone to pay you this make you no more than a high dollar internet panhandler. (referring to those engaged in gifting). I give but not in the sense here we have a non-profit and help others by giving them shelter, food and clothing and an opportunity to learn and find suitable work to get off the streets, out of poverty and fight to end poverty in America not promote false hopes of living in a richer world without honestly earning a living.
Mr. Madoff thought he would get away with his ponzi scheme and look at what it caused?
I'm sorry, I am still not convinced that this is illegal. I do agree that there are some gifting programs that have unethical practices but I don't think that every gifting program is bad. I do believe there are people who sincerely want to help eachother out. Its a brilliant concept and really if it is done with the right motive can be an extreme blessing to people. Like everything, there are people who corrupt a system that should be good. Though I don't believe it is a religion I do believe that if done correctly follows spiritual principles. The reality is it is more blessed to give than to receive and that when we give to others with a true heart for giving we will be blessed. Its the law of sowing and reaping.
"Remember this: whoever sows sparingly, will also reap sparingly and whoever sows generously will also reap generously." IICor 9:6NIV
Thank you for the information.
I cant belive you would write such crap!! I would like to know what Law thease so called people who went to jail broke...you never seem to say what it is now do you? I personaly have made $16000 from a gifting program sure did not seem like a scam to me! I think your post is very One sided with no proof at all ...just your opinion and nothing more.Sure there are some who will simply make you belive something that is not so, but you have to use your judgement. What about the stock broker who says( Oh this stock is going to go through the roof) And it does nothing at all...you lose all your money. Come on now I would much rather be part of a gifting program.
From what I see there is a lot of confusion on these topics:
• What exactly are Cash gifting Laws and Programs?
• What is the concept behind Cash Gifting?
• Is a Cash gifting Program a pyramid scheme.
• And Finally, What ARE Cash Gifting Laws?
These are some pretty good questions, don’t you think. Lets take the first one.
What exactly is a Cash gifting Program?
Gifting is a private concept being embraced by individuals in private groups and has been around since Jesus was walking around. Private gifting does not involve Business or Commercial activity. It is not Network Marketing, Affiliate Marketing or Multi-Level Marketing. There are no Investments, or Securities Trading, or Business transactions involved what so ever. Cash gifting Programs are simply just a club to belong to.
What is the concept behind Cash Gifting?
To express kindness to one another we give each other gifts, and we do this in private. This has been going on for centuries. Individuals share their wealth with their families, friends and just who ever at their own digression. Governments all over the world allow this practice. Do you give your family and friends gifts to show you care for them, have you ever just helped someone out because they need you to? Imagine for a second Congress holding meeting to pass Cash Gifting Laws to inhibit you giving another person a gift.
Cultures all over the world gift as a part of their normal life’s. They gift so their neighbor can buy a house, start a business or what ever they need. South American, Jewish and Asian communities gift with in their culture regularly. They in turn gift someone else to help better their lives. A really great example of private gifting is Habitat for Humanity. Everybody gets involved with there own materials, talents, and time, just to build someone a new home. They all work together to bless someones life, some with hammers and nails, some with a monetary gift, the point is they all do this to bless someone. Pretty cool!
How does the gifting activity work?
A basic concept is shared among Gifters, ” all things must be done in order”. You have heard of the phrase: “When you give you shall receive”. This is plain old ” you reap what you sow”. Are you starting to get the concept yet? When you give someone a gift you will start receiving gifts. The Laws of Attraction kick in and you can’t stop it. It’s so simple to see that blessing someone else only leaves the door open to be blessed yourself. If you haven’t read The Laws of Attraction by Michael J. Losier I strongly suggest you do. The bottom line is there are no hierarchy of individuals who have the advantage over new participants in a Cash gifting Program. Everyone is equal, Try finding that at your place of Business or anywhere for that matter.
Cash gifting Program a pyramid scheme.
No, a cash gifting program is not a pyramid scheme! Only a Company or a Business can be a pyramid scheme. Cash gifting Programs are not Companies, just a private sharing clubs. There are no sales quotas. There are no positions. There is no base at the bottom that widens and keeps going, and there is nobody at the top. Everybody is equal, period. Have you ever seen someone start at the very bottom of a company and end up at the very top. I know I haven’t.
And Finally, What ARE Cash Gifting Laws?
YES, all kinds of people, civic groups, and churches have participated in organized gifting for over 300 years. Laws state 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. Is there a specific Cash Gifting Law that states that it IS legal? Of course not... Just as there is no law stating that it IS legal to sleep at night. They don't make laws stating what IS legal, they make laws stating what ISN'T legal. And although I have heard CLAIMS of illegality, I have yet to hear ANYONE cite ANY "Cash Gifting Laws", because there aren't any.
The concept of private gifting is based upon the fact that both American and Canadian citizens have the Constitutional right to gift property, cash and other assets, and are subject to the rules and regulations established by the laws. The U.S. gifting rules are found in the IRS Tax Code, Title 26, Sections 2501-2504 and 2511.
So there it is Lawyer!! lol I would not want you representing me....
The attorney is clueless, except for saying 'actions' and
'intent' are the basic measure of legality. The fundamentals of gifting legality is found in the use of language. Particular words will define the activity as either commercial or noncommercial; if commercial terms are used within the activity, the activity is illegal. Whereas, if noncommercial terms are used within the activity, there's a good shot that it's legal. The emphasis must be on the giving, without expectation of receiving anything in return. If the spirit of giving is indeed the hallmark of the given activity, all who join in would have the same intent 'to give, without receiving.' And, if one's religious faith is placed more on his creator rather than in 'the system,' the overall process of giving and receiving should be beneficial. Certainly the act of 'giving' is scripturally based, is lawful and is encouraged. However, if 'the giving' is found to be commercial in spirit or in deed, the process is arguably illegal, according to man's codes. So keep in mind this one fact: law supersedes legality. When placed side by side, Yahweh's law trumps man's flimsy codes, always. /// Actually I can see why the lawyer is nervous about most any type of cash-giving structure. It's because a BAR-lawyer is involved in fraud up to his neck, and he knows it. 'A anxious defense makes for a mighty suspicious case.' /////
A practicing lawyer is lawfully bound to be registered with his local Secretary of State. If he is not, he is an unregistered foreign agent and stands in direct opposition to America's way of life, liberty, pursuit of happiness. How therefore is such an agent qualified to 'advise anyone' of 'anything legal OR lawful'??
Has anyone notice this so called attorney didn't reveal his/her name? Makes you wonder about this so called attorney his/her real motive. Notice the four links that proceed after the article. It's the old "tear down an opportunity to build up the one you really want to promote" routine
James, you are so right. This article is a 'scam'
Well I am in a pretty dee hole here and I've been looking for a hme buisness program to get into....but I keep running into is cash gifting legal or not...I don't want to take a chance of doing something illegal but I haven't come across any real proof that it isn't legal...But to this attorney I have come across some cash giftig videos where they did show their faces and reveal there names and telephone numbers...Youdidn't reveal either so that makes me question you as well....I think everyone should just do whatever their heart desires. If you feel that cash gifting is for then go for it is all I can say.
Why don't we just pay taxes on the money and not worry about it?
as long as we pay the taxes,i dont see what the problem would be.
As already stated, this "attorney" didn't provide any personal information, which is suspect. Then, at the bottom, promotes other money venues, which also stated, is the "tear down this one, build up your own". I'm considering joining a gifting program and have been researching the legality.
So far, not a single person who says they are illegal has told me WHY. Just a bunch of "what ifs". If it's illegal, then one should be able to point to a law.
What I have come away with in my research, is that it COULD be illegal if certain tactics are used. I'd suggest joining a gifting program that has wordage restrictions, and coaches it's members on what to say and how to say it - so as to avoid any legal tangles.
Even then, if these programs were illegal, I'd think someone could provide information of people who went to jail over it. At least then, we could see why they did, and if it was their actions instead of the fact of gifting that did it.
As far as I can tell, gifting is legal, and the IRS - one of the groups who would come after you - has said it's legal. Yeah a state AG could get a wild hair - but, why would he target the individual? I just don't see this happening.
I'll continue researching, but so far, I have not seen anything to suggest gifting is illegal. It's starting to look like something good for people to come together and share, and help each get financially stable. How is that bad? Sounds good.
To Will. You're right about researching. I would recommend anyone if you're serious about cash gifting to do your research. I researched for two years (I would not recommend taking this long....lol: there was a reason) and found nothing wrong. I wished I didn't take that long because now I'm experiencing success. If anyone has the time, take a look at this video: http://jointheuniversity.com/JamesClinton and notice the person filming Scott Miller can't contain himself.
I too have had success in cash gifting. Just make sure to find the right cash gift mentor before getting started. Get on their conference calls, find out what marketing they are using to generate gifts, and ask for references.
To Your Success in 2011,
I'm really unsure about this, I,ve been researching grants for my small business and cant find any (unless I have more to pay the grant program than what I need) I have come accross this cash gifting stuff meany time and am now looking into it. I pay taxes and claim all money that I get (which really sometime hurts to pay my hard earned money to the gov, but I dont want to end up in jail) So If u recieve a grant (which is legal) then why in the world would recieving a gift in these gifting program be illegal. -- one behalf of that and the only reason I can think of right off hand is is it possable a permid sceam of some sort which is you give others money to recieve money from other peopleand then do it again which then it is a permid.
I have not looked at any of these sites to closely yet, and this so called attorney does not say to not do it he is only saying he will not do it and to look into deeply before you do, he even says or suggests you to call your attorney genral of your state and ask them what if anything can happen to you.
He may or may not be an attorney (alot of people like to say they are) but if so or not he is getting the point across to be carfull and do all of the research possable before jumping into it.
If some thing sounds to good to be true, there must be a catch somewhere, maybe years down the line but theirs got to be something.
Please dont get me wrong I am not defending this person in any way, I love to also get things for free, freebie website rock and even they cost and can be very costly if your not carefull.
This world revolves around money and you must have it to live, and it is not easy to get either unless you have a rich family or are high up in a weathy coop.
I am going to look into this more, and hope to find that if I claime it in my taxes it is legal! Then I can maybe have a few days off in a row instead of one or two day a month and maybe have a little something in savings for once to do what my wife and kids and myself would like to do for once and not worry about what bill not to pay so I can take my wife to dinner every once in a while. I have missed four kids gitting older every day right in front of me because of work, work, work, and ends dont meet still (14-18 hour days 6-7 days a week) never ending. If I could change that that would be cool. My kids are still young my oldest being a young teen. my two in the middle are in grade school, and my youngest, the only girl is in preschool (which I cant afford, Just found out today that if we dont get cought up on payment she cant go the anymore (that will break her little heart)) But hey lifes about learning early on how hard life is going to be! -- just kidding got to get this one figured out -- maybe ill sell my mailbox with all of its contents and you must take care of everything in it (ill keep dreaming)
But when taking a risk like this I got alot to lose!
This post I just wrote made me think about everything in a different way, and wow I really do have alot to lose by possable going to jail, but alot to gain if it is really legal (which it should be if I pay my taxes)
chris
chris5191980@gmail.com
something else I just came across (found on a cash gifting website that i think was shutdown for this reason)
LEGAL ISSUES
There has been a lot of speculation surrounding the actual legality of gifting businesses. Now, we should like to caution here that the operators of the gifting businesses do not like being referred to as a business. They insist they are a private activity where entrance is only gained by invitation. They often will refer to a IRS statue that declares gifts up to $13,000 are tax free. So, on this basis they declare that the money you receive is tax free because it is a gift.
After conferring with our legal consul, we have come to the determination that this concept will likely fail to hold up in court for the simple reason that in the past the courts have taken on the view that when a concern is operated like a business, advertises like a business and in truth "everyone is in it for the money", that no true gift was ever actually intended and the whole purpose for its members is to enrich themselves while attempting to avoid taxes. So we feel that there is a very high likelihood of the courts ruling that this concern is in effect a business without products designed to enrich its members while trying to evade the taxes on profits from the business. Therefore one could easily find themselves charged with tax evasion. So, for this reason we find this a problem certainly if you think you will be able to skirt the tax issue. This legal issue is noted in all of the reviewed gifting programs. This has proven to be a major reason most people do not join gifting programs, they rightfully fear the legal ramifications of court challenges.
NO PRODUCTS
On another front the gifting business for the most part operate without any products and this too has caused the alarm bells to sound. One has to ask "just what am i getting in return for my hard earned money"? As far as we can see , Nothing! So, again, the courts are likely to see this as just another money game and they will very likely invoke the statues for you to prove that this is not just another form of a Ponzi scheme where innocent people are left holding an empty bag. Another major reason many people do not join gifting programs, is it really legal?
Hi Robyn,
I was just called on my house phone, (Which I had placed on the "Do NOT Call" list this past fall) about a Gifting program... So they still called me! Guess that "Do NOT Call" list is a FAIL!
Of course, they don't say on the phone what the program is about, but after viewing the site, and going through seven+ stages. It finally came out. But wait, they didn't call it a "gifting" program. I had to actually research the company name to find out what the heck this was. I think the lowest gift investment was $500. Then of course there's the web site setup fee of $25 and a monthly web fee of $39.95 and there was a mention on one of the pages about an annual fee that came out to about $11/month. Oh yes, there's also a leads fee if you buy their leads and that can be anywhere from $50 and up. As for any other investment? Only time will tell. But I won't go there.
Now I've also heard of Magnetic Sponsoring and I'm a member, though not active, so please don't send me information about this.
Although I do believe in MLM - I strongly feel any program you choose should be something your heart is set into. I did join a health MLM program many years ago that was working a little bit for me, and I liked the products, but I dropped out of it, because I found something that was a better fit for me. And of course, my heart was no longer in the sales for the health field.
Essentially, no matter what "Work From Home" business or activity (as gifting may be called) you choose, just make sure you really LOVE it! A big part of success comes from how strongly you connect with the product you have chosen as your vehicle to success.
As for me, well my vehicle is on the web at: DebraDiamond.com
This may not be your cup of tea, but for me, I've connected strongly with it. And if you do happen to pop over there, you will see everything up front. You don't have to enter your contact information to learn about our program or products or how you can earn money... It's just all there for your review and judgment. We have nothing to hide... Now of course, we do have a contact form to see the system in action, but what we offer is definitely up front!
As for the "gifting" I feel that Robyn of FreedomPlan has made a very good point! Gifting is a risk, it is a business, and should be considered so. After all, one does want to make money. If that's not your goal, then why bother? Why would I give someone money if I don't want money back? So why all the secrecy and hidden information? Frankly I find it deceiving that the gifting company I saw had to create all these steps for me to wander through for the information about them. Talk about a round about!
Anyway, thank you Robyn for posting your valuable information. You should know that you came up on the first page for my Google search for: "is gifting legal".
Great job at being seen naturally!
Cheers,
Debra
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Nate 3 years ago
Great Article, thanks.