Cash Gifting-Is It Real or Scam?

**jerry1952** · 11-25-2008 02:22 PM

Cash Gifting has become one of the top buzz words in the online business arena. It seems that whenever you do any kind of Google or Yahoo search for money making opportunities, you come up with at least a half dozen sites trying to get you into Cash Gifting. All of these sites proclaim the THOUSANDS of dollars you will make in this "easy to do" business. The question is: Is this for real? Is it legal? What are the tax ramifications?

Upon first glance, cash gifting sounds like a great idea. Afterall, what could be wrong with giving another person a gift of money, and then also receiving a cash gift? Sounds very benign, right? Unfortunately, the IRS doesn't quite see it that way. In fact, the IRS has labeled this type of business to be a pyramid scheme, which is very illegal. A pyramid, by definition, is any business that involves the transferring or exchange of money without the exchange of any tangible or real product or service. Cash Gifting is a perfect example of this. Money is exchanged, but there is absolutely no product bought, sold or exchanged between the two parties.

Furthermore, many of the proponents of cash gifting will tell you that this money is tax free, since it is a gift, and not income. Again, the IRS begs to differ, and considers all the money acquired to be very taxable, and not declaring it will get you arrested for tax evasion.

Cash Gifting, in a word, is a scam. It is illegal and should be avoided at all costs. It falls under the category of dubious get rich quick schemes, which only exist to con the user out of his or her money. It will not only make you poorer, it can also put you in jail.

There are many legitimate, legal, and powerful business opportunities available to the entrepreneur. Many of which require a very small capital investment (unlike Cash Gifting, where the buy in is at least a few thousand dollars!). Steer clear of this money trap. You have many other valid and powerful opportunities to choose from. that won't make you broke (or worse).

See you at the top!

**byzantium** · 11-25-2008 06:55 PM

Every time there's a severe economic slump, the pyramid schemes come out of the woodwork like termites in my grandfather's tool shed. Same turd, different paint. Hey, maybe if we paint it RHOMBOID people will buy it! And sure enough they do. Whoever invented the idea that money is made without effort was the king of con men.

Pyramid schemes are like the Cargo Cults in the South Pacific, only illegal. (Of course, religious pyramid schemes like Scientology seem to get away with claiming the First Amendment.) People see the wealth and power of the billionaires, but they see it out of context. They don't see how it was produced, and the effort that went into it, just that it apparently appears from nowhere. So the cults spring up, promising access to the magic wealth conjuring secrets of the rich. And people go along.

Is "cash gifting" any dumber than praying to outboard boat motors and constantly opening and closing old refrigerators in the hopes that cargo will magically appear? They're both the result of taking the end results out of their contexts. The true believers aren't stupid, they just are working with limited information. The human mind tends to fill in the blanks when presented with a conclusion not supported by limited information. The leaps of logic can be truly breathtaking.

**discountedclothing** · 11-26-2008 04:17 AM

I would prefer receiving goods rather than hearing promises to receive 'cash gifts'
(it really sounds a spam and i don't believe on those offers that i have read)