I decided to make a list of IRS Attorney Law Firms in San Diego and ask them some questions regarding cash gifting. I called several law firms and was immediately shot down after asking for an interview. After like the third place that I called I finally got a Lawyer to agree to answer some questions.
This is the result of my interview with Law Offices of Ronson J. Shamoun on May 23, 2012 - I will keep the person I spoke with anonymous for his own privacy.
What are the tax ramifications involved with cash donations/cash gifting in California?
I'm not sure what the amount is right now, because it changes every year,but I think it's around $15,000 right now. Any one person can give a cash gift of up to $15,000 to another person in one year without being taxed. Let's say that your mom wants to give you $15,000 dollars because you lost your job and she wants to help. Well she can do that without being taxed and you can receive that charity without any tax liabilities. Also if your dad wants to give another $15,000 he can, because each individual no matter if they are married can give up to $15,000 in a calendar year.
What about the person receiving the cash gift, are they liable for taxation?
No, the person who receives the donation will not be taxed at all. You can receive $15,000 from your mom and $15,000 from your dad and so long as it was given with a donative intent you can receive as much money people are willing to give you without paying taxes.
I'm interested in investing in a home based business called the Cash Tracking System that requires you to pledge a certain amount of money as a donation or charity to join this group and be eligible to receive money in return. Now there is no product or service involved in this transaction, is that legal?
Well by law I am not allowed to give you legal advice, and I dont know enough about the this platform to say if it's legal or not but if you are giving an amount to a business or to an organization with the intent or hope to receive money in return then that is not a donation. If you give money to a charity or church with a pure heart and don't expect to receive anything in return then that is a donation, and only if you give with a donative intent.
So, what If I was to invite people to visit my website and introduce them to the Cash Tracking System, that's the cash gifting program, and show them how they can be part of this private group of charittable individuals?
So what you are saying is that you are soliciting people to visit your website and give money with the hope of making money themselves.
Well, yes.
That sounds an awful lot like a business to me. Any time that you solicit your self in any form of advertisement and attract people to join your group or organization, that's is an organized business.
What if I was to be auditted by the IRS and asked to give an account for the income that I am receiving for the program?
It would be very difficult to provide proof that the money you received was in fact donated to you and not part of an organized system.
What if I had a letter from every person who gave me money that stated that they were giving me a cash gift without expecting a product or service?
That might or mighr not hold up in court, but it definitely can help your case. I can't tell you if the system is legal or not, but I can tell you that in any transaction, even if you're selling drugs, you need to pay your taxes to Uncle Sam. Now that doesn't mean that you are exempt from any legal action if the activity is illegal, but you will need to pay your taxes if you are generating income from any business.
~~~~~~~~~~~~
I have to say that was a very interesting phone conversation with the RJS attorney. I intend to interview several other law firms and ask different questions to get some solid facts about this whole Cash Gifting program.
I hope that this information answered some of your questions and I hope to provide you with more in the near future.
Please feel free to contact me with questions you would like for me to ask on my interviews.
Saturday, June 2, 2012
Friday, June 1, 2012
Show me the Money$$
I want to tell you how I came to find out about the Cash Tracking System (cash gifting) and why I decided to start this blog.
I received a text back in mid April with a message that said something like " If you want to make money from home click here", something very generic like that and right under the message there was a web link and a password. Now I dont normally get spam messages on my phone so I began to think why I had received this text. Then I remembered filling out a form online to receive information about home based businesses so I proceeded and clicked on the link from my text.
It took me to the Cash Tracking System website and on the homepage it asked that I log-in using my name, email address, telephone number and the password from the text. After entering my info and password I was given access to continue.
After entering the website it took me through seven different pages each one explaining the system and how it works. Basically there are three different pledge levels that you can enter into the program by. The first is the $500 level, the second is the $1500 level and the third is at the $3500 level. That sounded pretty steep to me at first, but after watching the videos and learning about the system and how it worked it seemed like a realistic amount to invest.
The system works on a One-Up system, that allows you to receive money from the people that you invite. By submitting a pledge amount you are simply paying for a membership to be able to participate in the program then you need to invite one person (your qualifier) to qualify you to receive a cash flow. The pledge level that you decide to entered into the program by will determine what you are qualified to receive from the people that you invite. Let's say that you enter the program in the $1500 level, after you have invited one person (your qualifier), and the third person you invite comes in at the $3500 level, you are only eligible to receive $1500 which is at the level that you came in at, the rest will go to your inviter. So basically the more you invest the more you receive.
But that's not all folks, there are other costs associated with getting started and successfully making the system work for you. You need to set up a your website (landing page) so that people who you invite can have access to the the same material that I watched and listened to about the system. The cost to maintain the website is $34.95 a month, that includes the Presentation Center, Training Center, the Cash Tracking System Software and the Support Center, plus a one time setup fee of $25 for the initial setup of the website. All of this information is on the website as part of the presentation and Q & A page.
After going through the whole presentation and all of the qustions and answers page I was pretty exited and pumped about joining the system. Now I didn't want to get carried away and jump into something by motivation of all the hype and make a decision on impulse alone so I decided to do some research first.
And that's what motivated me to start this blog and become the guinea pig for this experiment. I want to research this almost too-good-to-be-true system and expose it by finding facts about how it operates and what makes it work. Hopefully I can succeed in keeping you from making a very bad financial investment that you are going to regret or maybe help you make a decision to try the system after getting the facts and change your life forever.
I received a text back in mid April with a message that said something like " If you want to make money from home click here", something very generic like that and right under the message there was a web link and a password. Now I dont normally get spam messages on my phone so I began to think why I had received this text. Then I remembered filling out a form online to receive information about home based businesses so I proceeded and clicked on the link from my text.
It took me to the Cash Tracking System website and on the homepage it asked that I log-in using my name, email address, telephone number and the password from the text. After entering my info and password I was given access to continue.
After entering the website it took me through seven different pages each one explaining the system and how it works. Basically there are three different pledge levels that you can enter into the program by. The first is the $500 level, the second is the $1500 level and the third is at the $3500 level. That sounded pretty steep to me at first, but after watching the videos and learning about the system and how it worked it seemed like a realistic amount to invest.
The system works on a One-Up system, that allows you to receive money from the people that you invite. By submitting a pledge amount you are simply paying for a membership to be able to participate in the program then you need to invite one person (your qualifier) to qualify you to receive a cash flow. The pledge level that you decide to entered into the program by will determine what you are qualified to receive from the people that you invite. Let's say that you enter the program in the $1500 level, after you have invited one person (your qualifier), and the third person you invite comes in at the $3500 level, you are only eligible to receive $1500 which is at the level that you came in at, the rest will go to your inviter. So basically the more you invest the more you receive.
But that's not all folks, there are other costs associated with getting started and successfully making the system work for you. You need to set up a your website (landing page) so that people who you invite can have access to the the same material that I watched and listened to about the system. The cost to maintain the website is $34.95 a month, that includes the Presentation Center, Training Center, the Cash Tracking System Software and the Support Center, plus a one time setup fee of $25 for the initial setup of the website. All of this information is on the website as part of the presentation and Q & A page.
After going through the whole presentation and all of the qustions and answers page I was pretty exited and pumped about joining the system. Now I didn't want to get carried away and jump into something by motivation of all the hype and make a decision on impulse alone so I decided to do some research first.
And that's what motivated me to start this blog and become the guinea pig for this experiment. I want to research this almost too-good-to-be-true system and expose it by finding facts about how it operates and what makes it work. Hopefully I can succeed in keeping you from making a very bad financial investment that you are going to regret or maybe help you make a decision to try the system after getting the facts and change your life forever.
Subscribe to:
Posts (Atom)