I've seen morons that claim "gifting circles" are legal because no returns are "expected".
Well, the Federal Government begs to differ, as it is investigating into such on the East Coast.
So what the heck is gifting circle?
You start at the "outside" of the circle. You need to gift some money into the person in the center.
Keep giving, and you move closer to the center.
When you reach the center, YOU will be receiving the money.
Sounds interesting? Sounds stupid to me. It's a pretty darn blatant Ponzi scheme.
Yet some morons claim that because IRS allow "gifting" of assets under tax code, gifting circle is legal.
Clearly they didn't read the section on pyramid schemes.