subject: Basic Facts On Cash Gifting [print this page] Cash gifting is a new and controversial market that has opened up many doors for single entrepreneurs. Often times, in programs like cash gifting, one person will make a lot of money and many people will lose what they invest. If you are able to find a program though, that is correctly set up, there is an opportunity to make money. People who set up cash gifting programs or enroll in them are generally desperate for money, so it is important to be weary of what exactly you are paying into. Also because these programs are done primarily though the internet the chances of getting scammed is much higher.
The controversy behind cash gifting is based upon the IRS code that makes it legal. The code states that one can gift a certain amount per year to an individual without being taxed on it. The catch is that there can be no anticipation of reciprocation. When one enters a cash gifting program they are anticipating to make money, hence the legality is questioned. Some cash gifting programs try to avoid this by creating contracts that bind the signer to a statement of no anticipation to make money. Some programs do not even bother with the legality issue. If the program is a large scale operation then there is some risk.
The person who starts the program is often the one who will make the most money. This is because they are at the top of the gifting and receive a percentage of all that is given. In order to avoid entering into a program like this one must watch for words like pyramid and recruit. These two words generally imply that the cash gifting program is one that is based upon the number of people you are able to get to join, and then you have to pay out to your superior while those under you pay out to you. These programs are illegal for a reason, they are a complete scam.
The internet world is new and lacks any legal premise because of its immaturity. There is a lot of ground to be cover online, but there is also a lot that has not been covered. In this, new laws will be made, and until then there are scams out there that people can start and suck you into. There is also a lack of ability to monitor legality of programs like businesses are monitored in the physical world. Overall it is important to be cautious with your money but not to give up a good investment opportunity.
by: John Schnieder
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