Hi my name is Andy Chen and I am posting this article because I've been asked if I could put a quick definition of what I thought 'Cash Gifting' was so here it goes. Of course as always you may want to do you own due diligence and it never hurts to get a second opinion.
So What is Cash Gift? Is it legal?
By definition, Cash Gifting is the act of publicly or privately giving an entity or another person a declared amount of cash (strictly as a gift) and giving it freely without any consideration in return for this gift. Cash Gifting is not to be deemed a loan or a payment for goods or services. It is called a cash gift because that's exactly what it is, a gift of cash.
Over the year there has much discussion as to the legitimacy of Cash Gifting, but under the U.S. Gifting rules in the IRS Tax Code, Title 26, sections 2501-2504 and 2511 it states that we have the constitutional right to gift property, cash and other assets.
The law also states that one or more individuals can give a gift to another up $11,000 for each calendar year without tax liability to either the receiver or the giver of the "gift". Reason for no tax liability is because the gift had already been taxed.
So basically, cash gifting is nothing more than the act or expression of kindness from one person to another which has gone on for 100 years and to my knowledge with many cultures around the world, including Hispanics, Chinese, Jewish. These acts of kindness may be best note to help others buy a home or perhaps to open a business.
So there you have it. I hope this will helps some folks thinking about joining the cash gifting industry have a better idea. Should anybody like to ask me a question please do not hesitate to contact me at thecashmogul@gmail.com
