Legal vs. Illegal Gifting Activities
Private and legal gifting activities, sometimes referred to as cash gifting or cash gifting programs or gifting programs or gifting and such, continue to be misunderstood in their present form. There is a perception by many people that they are illegal, and in some instances this is correct, but not in and around ethical programs that are structured properly.
When legal gifting activities are set up correctly and operate within proper cash gifting laws, then they are perfectly legal. Gifting is even a constitutional right for citizens of the United States and is legal in most nations. Gifting activities, in fact, have been around for quite some time.
Gifting Activities Can Work Well if YOU Operate Legally
So, is cash gifting legal? Well, yes and sometimes not. Cash gifting, again, when engaged correctly is perfectly legal. People give away cash gifts all of the time, for instance during holidays, special occasions such as graduations, birthdays and even just because. It’s perfectly legal to do so in the United States and Canada without tax implications to the giver and receiver.
In fact, any person that has ever received cash gifts or has given cash away as a gift to family, friends or even strangers, has already participated in some form of gifting activities.
There are cash gifting laws and rules which govern some gifting activities relative to tax implications. In the United States, the IRS Tax Code is Title 26, Sections 2501-2504 and 2511 and Canadian Tax Code, Sections 143.3 and 62.0.
Let me make this point: We are certainly NOT offering any tax advice or legal advice here. For individuals who would like more clarity on their personal tax implications of receiving cash gifts, then an appointment with a tax attorney or CPA may be in order. He or she will be able to give advice about your country and/or state laws concerning gifting. But don’t believe what you read around the internet about cash gifting. It can be challenging to sort out truth from fiction.
Private Gifting Activities Can Not Be…
The 2011 law states that one or more individuals can give a gift to another individual of up to $13,000 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. This is because the monies are what the IRS refers to as “after tax” cash.
Legal gifting activities or programs can NOT be set-up so that they in any way resemble a pyramid scheme or multilevel system with products of any sort. There can be nothing given in exchange for a gift to be considered a gift. Many pseudo cash gifting programs out there on the internet are considered illegal. Many money websites and offshore programs are dubious at best.
When gifting activities are set up and performed legally, every person has an equal opportunity to receive gifts. If a person agrees to join in the gifting activities, a short agreement of rules and ethics is confirmed. In the best programs, one person will join and offer a gift and then become eligible to become the receiver of gifts without passing up gifts to “qualify”. The Peoples Program is of the top gifting programs.
When considering any gifting activities, there are a number of gifting programs that individuals will want to avoid, for instance, cycling programs and such. A cycling program is one in which a person is required to become ranked by bringing a certain number of people on-board before they are able to receive any gifting. Binary and matrix gifting activities are forbidden as well. It is best to keep away from these, in order to avoid legal trouble. Also gifting is frowned up and often prohibited in communist countries that oppress their peoples’ freedoms.
Gifting activities in and around ethical global gifting connections are legal if you act properly.