Legal Question in Tax Law in California

Re: Cash Gift Taxes

Wow, you have a lot of potential issues, beyond just those of a tax basis. However, the actual question "Gift Taxes" probably would not apply in your situation. Gift taxes or transfer taxes, are taxes that apply to the person making the gift, not the person handling the transfer.

You might have sales tax issues depending on how you are handling the transfer, there is also yours and your businesses income tax (obviously).

You really need to see a business attorney, who should be able to answer many of your questions. I would be concerned that you are actually acting like a bank and certain laws that apply to banks would also apply to you. Not to mention the liability and tracking issues.