ANSWERS: 1
  • <h4 class="dechead">On One Hand: Cash Gifting is a Scam

    To qualify under IRS rules, when you give cash in order to avoid taxes on your estate, you can give up to $12,000 each year, but you must give the money without receiving anything back from the person to whom you gave the money. Cash gifting programs work by getting new investors or cash gifters to enter the program in order to pay off the people already in the program. The new people then wait for more new gifters to come in so they can receive money in turn. Cash gifting is a Ponzi or pyramid scheme.

    On the Other: Some People Come Out Ahead

    If you get into a cash gifting program early in its life, you can make money. About 10 to 15 percent of people do. Cash gifting programs may advise you on means of handling cash gifts that will not arouse suspicion at financial institutions. This is necessary because pyramid schemes are illegal activities in all states.

    Bottom Line

    Cash gifting is a high-risk activity on many levels: 85 to 90 percent of people who enter into a cash gifting program lose money, and involvement in a cash gifting program could get you into legal trouble. If you are considering entering into one, first consult a tax attorney.

    Source:

    CashGiftingWatchdog.com

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