Cash Gifting And The Cash Gift Tax
I have been involved with cash gifting for quite some time and I constantly am asked about cash gift tax as it relates to this activity
. As always, I refer to IRS Publication 950, but rather than using this publication as an excuse not to pay taxes, I probably see it differently than most.
According to Publication 950, a gift (including money), is not taxable. The annual exclusion amount, since December 2009, is $13,000.00 per person. This means that you can give, or receive, a gift up to the exclusion amount from or to multiple persons.
However, if you are going to use this publication to tell others that cash gifting is legally tax exempt, then you must also include the whole publication and not the part that works for you. Now before I really go into this you must understand that I really enjoy cash gifting. My reasons are many for enjoying this type of activity, but for the most part I like the simplicity of it. I also know that by creating a network of like-minded people is the real wealth of this type of a program.
For the "down" side. According to publication 950, cash gifting would seem to be exempt from paying any taxes as a giver or receiver of gifts, but this may not quite be the case. In the publication there is one statement that seems to stand out as much as the others. Under the section of the publication titled "Gift Tax," it is the way gift seems to be defined. According to the publication, "You make a gift if you give property (including money), or the use of or income from property, without expecting to receive something of at least equal value in return."
Now, I have looked at many different programs on the Internet including many different cash gifting systems. All of the programs that refer to Publication 950 as proof that you do not need to pay any taxes on the gifts that you receive all state that you should gift without the expectation of receiving more gifts. I myself offer no guaranty concerning someone personal income and this is not exclusive to the cash gifting program that I promote, I don't offer any guaranty with any program that I may promote. What I do guaranty is that I will do everything that I know of to help you succeed online and that is really all I could do anyway.
The bottom line is that you will need to get your own professional opinion as to whether or not you should pay taxes on gifts you give or receive. This means that you should consult with your CPA or tax attorney; they are going to be the ones that can give you a good and legal opinion.
As for me, I am an internet marketer. I know that I can earn money with a gifting program or any other program out there because I know how to market online. I still learn something new every week, so as far as learning about marketing your program online you must continue to get as much education as possible, but once you do learn how to market effectively then it doesn't matter what the program is, you should be able to make money with it.
by: Mark Graham
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