So this review goes out to all my skeptics =D

The Truth About Cash Gifting…

We’ve all heard about the next BIG home based business opportunity. You know, the one that will make you an instant millionaire and you won’t have to do any work to get there. All you have to do is send in your money and the next thing you know in 30 to 60 days you will never have to go to the 9 to 5 ever again. Yes, and I have a parcel of land…

We also all know that marketing on the internet can be a risky business at best if we know nothing about the company or better yet some of the people that promote the company. More and more we all need to have our scam radar working overtime to decipher the real work at home opportunity from the Get Rich Quick scheme.

One of the best income opportunities ever offered is a “real” Cash Gifting program. Now with that said it must be brought to light that there is a difference in this type of program. Some cash programs in the past were just “pyramid schemes” dressed up for a night out on the town. So let’s look at what it takes to make a real Cash Gifting program work for anyone that gets involved.

Cash Gifting can be defined as: The act of privately or publicly giving another person or entity a declared sum of cash, (as a gift) and giving it freely without coerce or consideration. Cash Gifting is in no way a loan or any type of payment for goods or services received. Now guess why it’s called a cash gift… because that’s exactly what it is.

Let’s lay out a few of the reasons some of the Cash Gifting programs in the past have failed in a very short time:

1) The founders of some of these programs had no concept of how to set up a proper Cash Gifting program to assist the members with a working “business model”. Any home based business or work at home opportunity needs a proper plan of operation to be a success, even a Cash Gifting program.

2) No tracking system was devised to keep all of the members abreast of what monies were coming their way or when to expect them.

3) There were no legal documents created nor provided to outline the transfers of cash gifts from one person to another.

4) In some instances there was no proven or tested marketing system provided for the members. Along with not providing tested marketing concepts, the members were set up to fail before they ever got started, unless they were seasoned veterans.

5) Without a way to track the members advertising efforts no one knew what, when, why or how their hard earned dollars were being spent and what in fact was their ROI. (Return On Investment)

So what did this all lead up to? In the past many Cash Gifting programs quickly got labeled as unethical and some were called pyramid schemes or even scams. Now, in most instances this was not true, but without a proper “business model”, destiny prevailed. I’m sure a large number of us have received the “Send $5 to 5 people and you can make a kazillion dollars in the next 30 days” letter. That type of Cash Gifting letter is the perfect example of the old adage “one bad apple can spoil the whole bunch”.
With this in mind, let’s take a look at a program and see if it meets the standards to become a viable income opportunity.

A Cash Gifting home based business model needs:
1) A simple to follow, time tested and proven, marketing system that anyone can follow. This will assist a new member in starting their work from home opportunity correctly.

2) A tracking system that allows a member to track the scheduled arrival of any gifts being sent to them.

3) A fully functional back office where all members can update personal information.

4) Tutorials on advertising with classifieds, ezines, banners, Pay Per Click, voice broadcasting etc. Along with access to prewritten ads that have been tested and proven to deliver results.

5) An area where the members can order advertising tools such as company approved custom business cards, postcards and flyers.

6) Members should also have access to autoresponders, lead generation and a follow up letter series to stay in contact with new prospects.

7) Above all, a step - step system that takes the new member through the process from sign up, to paperwork completion, to advertising… Right up to the point when they receive their cash gift at the door.

Now with all of the above components in place, an entrepreneur should be able to launch a home based business without investing a lot of effort in start up. In this type of ideal environment the majority of time can now be spent on developing the business, as the business infrastructure is already in place.

Every work at home business needs a strong foundation to be successful. With more and more people every day looking to make extra income in their free time, getting started “right” is the key element between success and failure. It really doesn’t matter if you’re looking to leave your J-O-B; working from home to spend more time with the kids; a Baby Boomer working toward retirement; or someone just looking to create the excitement of building his/hers own fortune, one thing remains true to all business, without a strong business model or foundation you set yourself up for failure. Author Henry David Thoreau said it very well, “If you have built castles in the air, your work need not be lost; that is where they should be. Now put the foundations under them.”

Wishing you a multitude of success in whatever you do and remember that,

“Destiny is not a matter of chance, it is a matter of choice; it is not a thing to be waited for, it is a thing to be achieved.”
- William Jennings Bryan 1860-1925, American Lawyer, Politician

This information was in part taken from New Image Marketing Group, Inc.

Check out what this legal, battle-tested, ready to go cash gifting system is all about. –> MyCashRevolution.com

Keep coming back and bookmark me,
Merudh

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In reviewing the phenomenon of cash gifting, the oldest I have found on the internet claims to have been around for 14 years. The other older programs appear to have been operating for five to ten years.

The literature states that these methods have been used for many years by the wealthy to basically share income.

The principles legally apply to the IRS approved gifting codes. “The rules do state that “For calendar year 2007, the first $12,000 of gifts to any person (other than gifts of future interests in property) is not included in the total amount of taxable gifts made during that year”. The official IRS website gives a lot of detail regarding tax free cash gifts to any one individual in any given calendar year, there appears to be no limit to the number of gifts any one individual can receive from different giftors in a calendar year.

All of the programs that looked at seem to comply with the rules of the IRS and several go through great lengths to clarify to visitors to their sites that the whole process is legal and not a scam. Several programs approach the topic from a religious point of view and even quote the bible. another say it is the only one set up by a lawyer, although that does not to be significant in the overall scheme because it appears legal anyway.

All of the programs include a gifting statement that states the person giving the cash gives it freely without any product or service being exchanged or traded and has not been coerced.

The most compelling reason I can find for believing it is legitimate is that these programs have not been shutdown by the IRS.

The most properly structured - legal gifting program currently is SOW TODAY!.
It is only gifting program that involves no calling of your prospects. Its definetely worth taking a look at.

The Annual Gift Tax Exclusion

Whether helping the kids with a down payment on their first home, paying the premiums on a life insurance policy in an irrevocable trust, or moving appreciated assets to a younger generation, annual gifting will touch the lives of millions of Americans. But before the transfer is made, an investor should spend some time looking at the investment and the tax ramifications of the property to be passed.

Much of the gifting itself will be done under the Annual Gift Tax Exclusion, a method that alleviates both a gift tax and the need to report the transfer. This exclusion applies to gifts only between individuals. Gifts made to charities and other organizations fall under a completely different set of rules.

The transfer is not deductible by the donor nor is it taxable to the recipient. Currently, the annual exclusion is set at $13,000. In the future, this can be adjusted for inflation, but only in $1,000 increments. Spouses can increase their gifts to others to a maximum of $22,000 and, finally, gifts between spouses, like love, knows no limits.

Most transfers are done for one of two reasons. In the past, passing along property to diminish the value of an estate and, therefore, estate taxes was a major consideration in estate planning. This is still used extensively for larger estates but, under current law, fewer estates are subject to the tax. If the estate has no tax exposure (and if nursing care is taken care of), many advisors recommend not to gift at all but, instead, toallow the assets to receive a “stepped up” tax basis upon death.

Gifting to allow for current use of assets has been and continues to be popular. Often a parent wants to see a child use the gift immediately in order to enjoy an extended vacation or to make a major purchase. Here, it is expected that any gift of securities will be converted into cash with the appropriate tax paid.

Both donors and recipients should be aware that various gifts for educational or medical purposes may not reduce the annual exclusion. You should check with your tax advisor to determine whether this applies to a your specific situation.

Certain kinds of property (real estate, art, collectibles, closely held business interests, etc) should be appraised before a transfer is made. Consulting an expert in the particular field is usually a good idea to calculate the fair market value of the property.

Another circumstance requiring professional help is when “spending down” an estate for Medicaid purposes. An elder law attorney should be consulted for help in this area.

The actual gift of marketable securities or cash is fairly straightforward. Giving a check to someone or journaling over securities is enough to complete the gift. However, before making the gift, you should understand some of the potential tax considerations.

Let’s first look at stock that has appreciated in value. Remember, whatever tax basis the donor in the gifted property will become the recipient’s tax basis. If the donor is in a higher tax bracket than the recipient, it is often wise to gift the stock to the recipient and let the recipient sell the stock at his or her lower tax bracket.

If the fair market value of the stock is below the donor’s original cost, then the donee must use the fair market value of the property as of the date of the gift in determining his or her tax basis. If you find yourself in this situation, the donor should consider selling the asset and then gifting the cash proceeds to the recipient.

Obviously, there will be times when a gift needs to be made regardless of the consequences; but, when time allows, you should do your homework to see what works to your best advantage.

Hope that was helpful,
Merudh

Take a look for yourself - MyCashRevolution.com