The Truth about Cash Gifting and Taxation

Cash gifting is typically done via a gift card from one person to another, where all the terms of the transaction are written down in a contract. From there, it’s up to the receiver to use that gift card as they see fit. 

This process is not easy for governments and corporations because money can be exchanged without going through any kind of bank or other financial institution involved. This allows for more privacy and confidentiality and creates an opportunity for people on either side of the transaction to use cash gifting to avoid taxes — which increases their profit margin by avoiding taxation. However, we are not here to discuss cash gifting as a way to avoid taxation, but as a way to participate in a social movement.

A common scenario is for someone who's already wealthy and looking for ways to give back to the community. It's important here to understand that there is no such thing as a perfect system, and when it comes down to it, no one is exempt from corruption. The best way to protect against fraud in any financial transaction like cash gifting is through communication and transparency — even if you're only involving one other person. Transparency eliminates the opportunity for someone on either side of the transaction to take advantage of another because they know what they are entitled to.

That being said, there are some ways that this process can be harmful to our society. Imagine a situation where one person is wealthy enough to donate millions of dollars to charities and causes in their communities. In formulating a gift card, they would need to consider the amount of taxes they would have to pay in order to give that large of a gift. This is problematic because many people in low-income neighborhoods do not even pay taxes, and if someone gives them a gift card for say $200 — it may not be enough money for them to cover all their basic necessities.

Not only are the people receiving the gift cards potentially being impoverished, but those giving them have gained an unfair advantage over those who do not receive them. The flip side of this is that it's also possible for a gift card to be given and not be used. The truth of the matter is that if no one cashes it in and there are no tax liabilities, then no one has actually lost anything. All that matters here is the intent and intent is all that matters if there's no action or activity on both sides of the transaction. This is why cash gifting should only be used as a way for two people to help each other out, even when they're on opposite sides of the financial spectrum.

Cash gifting can also serve as an incentive for someone to help out the less fortunate. Everyone knows about the tax deduction one gets for doing a good deed, and cash gifting can be seen as an opportunity for someone on either side of the transaction to do something nice, without spending any money of their own. Therefore, it serves as a way for someone to give back without sacrificing any of their own funds.

Cash gifting is an intriguing concept, but it's important to keep in mind that no system is ever perfect. For this reason, it's important that we constantly work towards fixing problems in our social structures instead of letting them become bigger than they already are.

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Read the full article at: https://www.websleuths.com/forums/showthread.php?270536-The-Truth-about-Cash-Gifting-and-Taxation

Grasshoppers - please feel free to share this article!  Thanks!

http://www.thetruthaboutcashgifting.com/ 12/27/11 --- this is a possible link where the article above came from. Just did a quick search for "cash gifting" on Websleuths and this came up, and I have no idea about the original source for it. I'm not sure if it originally was in PDF as opposed to HTML format, but it doesn't look like there are any hyperlinks in it that would help others find it more easily. Reply Delete

Thanks! This is probably the author's original post and article, but it has been copied all around. I don't think this is a bad thing as it points to the author's website and people can get more information there. Delete

Thanks for this! I want to be clear that there is nothing criminal about cash gifting, even in NA countries. It's just another way of donating money, and in some cases it may be better to do it via a small gift certificate than with large paper checks. However, one should stay away from tax evaders who have cash card schemes at the expense of those in need. Delete

How great is this article! I think I read it all at once over the past few days because it was so interesting. I didn't know there were so many ways to cash-gift (and I never knew the term existed). Like you said, it's very important to use cash-gifting with the right kind of honesty and integrity. Thanks again for providing us with such valuable information. Delete

I think the whole thing is pretty naive. On the one hand, you explain why giving a gift card can be a bad idea, for example if someone has no money and cannot buy food, then that is not good.

Conclusion: Cash gifting is NOT a good idea. I am all for charity, but if I have money that I can give to the charities, I will do it that way. Also if you owe taxes and you cannot pay the taxes, then it would be better to donate instead of holding on to the cash and giving it away some other way.

On the other hand, they are of course talking about cash gifting in general (like the kind you hear about on this forum), not cash gifting which is allowed in many places (it is legal in several US states). So, yes this article does have some good points: 1. You don't need much to start your own business in cash gifting. 2.