Discussion in 'Business Opportunities and Programs Reviews' started by JulieP24, Aug 24, 2008.
Anyone tried this yet?
Looks like some sort of cash gifting scheme.
I have to agree with 040107.
Be careful with the cash gifting thing.
I am actually doing it as we speak. Just signed up about last week, and I'm starting to build some momentum. Getting the word out is what is comes down to in any business, and having a solid support system with awesome coaching, which I have seen through Epic Wealth Systems.
so how is your activitiy going for you?
Gifting is a nice idea.
And THE CASH LEVERAGING SYSTEM, promoted by many here at WAHF, at least does so for only $25!
The jury is still out at to the legality of gifting imho.
Sure, you are allowed to 'give' anyone $12,000, but is it legal to set up a web based system to do so, involving unlimited numbers of people, with the idea of making geometric expansions of your investment capital, and to also not pay ANY taxes on it? (Putting aside the issue of the legality of income tax in the first place!) Doesn't the STRUCTURE of the 'gifting' scheme count?
Not accusations, just some questions.
The info at the bottom is copied from this site.
This is certainly gifting, but ultimately, only a JUDGE can tell you what is legal or not (to include the appellate court). And that's only after the usual lengthy and costly legal process.
Second to that get good PROFESSIONAL legal advice.
But if you want good 'devil's advocate' advice, check with your local AG office.
Anyway, here's website 'legal advice' directly from THE EPIC WEALTH SYSTEM webpage:
Is Cash Gifting Legal?
This was the first thing that came to my head when I first heard of this activity: this can't be legal. But to my surprise, it is, in fact, a legal activity, here's why.
In researching this activity, I learned that both American and Canadian citizens have the Constitutional right to gift property, cash and other assets. The U.S. gifting rules are found in the IRS Tax Code, Title 26, Sections 2501-2504 and 2511.
The law states that one or more individuals can give a 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. These gifts are not included in the gross income of the recipient.
Thanks for the info tjam, and good work on the research!
I have come to the same conclusion, that they are legal.
Hold on there Julie P!
I am not quite drawing that conclusion.
I was just quoting the website!
I sure wish CG was legal but I would think there are things to consider when you set up a SYSTEM of CG!
I don't know how legal that is.
And there are taxes to consider!
I'd love to think of CG as thoroughly legal, but check your particular CG system with a qualified lawyer, or the AG's office, for sobering advice is MY opinion.
But good luck 2 u either way!
I believe in Cash Gifting and making good money from it. I do not see anything wrong or unethical. It certainly isn't for everyone, but the ones who join and know how to market can make some good cash.
I have spoken with others who do this, and have been for years, and they actually went to the irs to show them exactly what they were doing. The irs looked over their bank statements and gifting statements and said that it is completely legal. Of course it is always good to be cautious with anything you try, but I think if you were to do one of these, it would also be good to make sure you have joined with a good set of other gifters and have a good system set up in place. Otherwise it can be very tricky on your own.
PowerCashFlow: I believe in Cash Gifting and making good money from it. I do not see anything wrong or unethical
Actually, I agree with you.
But before I say that I don't see anything wrong or unethical, I'd have to have a good understanding of the structure of that CG system.
The thing that makes pyramid structures unethical and illegal is that eventually there is a LARGE base (of the pyramid) of people that will NEVER make money - when the plan shuts down, this is inevitable. Since there's no product involved, those people got nothing whatsoever for their money. All they did was give money to other people.
I don't think that's unique to CASH GIFTING either.
Some CG/pyramid structures include some kind of product which I think is an excellent idea.
I too am making money with CG plans so I understand where you are coming from.
That's a good point TJam, although the unique thing about cash gifting is the legit ones are not a pyramid structure but a 1-up structure. So no one ever profits from the work you do. Everything is 100% yours after that one up. You make your one time pledge and then give up your first person, then everything after that is yours.
JulieP24: the unique thing about cash gifting is the legit ones are not a pyramid structure but a 1-up structure
I don't agree with this statement at all, and with respect you certainly won't find a lawyer who agrees with it either. I'm not saying they're illegal, but they're most certainly not legal "because of a 1-up structure". I don't mean it rudely, but I really challenge you to find and list/link here any authoritative document or statement from any legal or regulatory authority in any country that says so.
I don't agree with this statement at all, and with respect you certainly won't find a lawyer who agrees with it either.
Actually, you'll be surprised the numbers of lawyers who end up
getting themselves involved in illegal activities and fraud. I've seen
it many times where lawyers speak out for the business activities
they're part of only to lose money like everyone else when the
company gets shut down.
The sad part is most of the time it's because of them that others
join believing the business is clean and legal.
Cash gifting schemes are operating with the assumption that if it's
legal in terms of taxes and the IRS, it's completely legal which is
a wrong assumption.
In terms of taxes, yes, cash gifts may be nontaxable up to $12,000
per person. However, abiding to the tax code doesn't make it legal.
Just as if someone were to rob a bank and pay taxes on the
amount was taken.
Legally, the IRS can't touch that person with a pole.
However, does that make the activity (robbing the bank) legal?
You cannot say that cash gifting schemes are true gifting technically
because every paying person is assumed to expect and ROI. This
is where cash gifting clubs (schemes) gets in trouble legally.
Don't listen to who and who who said this and this who heard it
from someone who said cash gifting is perfectly legal because you
don't have to pay taxes on it.
WHAT'S QUESTIONABLE ISN'T IN THE AREA OF TAXES!
C'mon people listen directly to what the FTC has to say about cash
The FTC isn't some lawyers who are also members of the cash
gifting programs. They're the government themselves!
I know what you're thinking...
"But my scheme is different because it's 1-UP, etc."
Bottomline, is no matter what name you call it. If people marketing
the scheme are letting you know who much money can be made
by joining, it's no longer a true cash gift. Everyone is expect to
make money in return EVEN IF they make you sign some sign some
papers saying quite the opposite. The way the scheme is marketed
is telling differently.
Now if you're the type of person who are aware of this but think
you won't get caught then whatever but don't think because you
can't get it's okay to tell others it's legal.
People in gifting clubs would never admit to being in illegal
operations would they?
Separate names with a comma.