A person can give any number of gifts of less than $12,000 to any number of persons. No tax is payable on these gifts. The person who receives a gift of any amount does not pay. Only donor may have to pay the tax. All gifts of more than annual exclusion amount ($12000 for 2007) must be reported. There is a lifetime exclusion of $1 million.
A person making a gift in excess of $12K must include the gift in the lifetime exclusion and file Form 706 to document the gift. If you are married, both you and your spouse can separately give up to $12,000 to the same person in 2007 without making a taxable gift.|||Photo painting http://www.photoartomation.com
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|||You are not subject to gift tax until you use up your lifetime exclusion.
If you have not used up your lifetime exclusion, and give $12,000 or more to an individual, you will have to file a gift tax retun, but not pay gift tax. You can give far more than $12,000 and not pay gift tax.
The annual limit for filing a gift tax return is adjusted periodically but has not been eliminated.|||The current annual gift limit is $1,200 to a single person. The form required if the amount is greater than $1,200 is IRS form 709 and the lifetime exclusion for deaths that occur in 2006,2007or 2008 is $2,000,000 that will increase to $3,500,000 in 2009. The law is presently set to sunset at the end of 2009 which means if congress does not act the limit will become zero $0 in 2010.|||Anything above the annual limit requires you to file a report with the IRS. Until your total lifetime reported gifts exceeds your lifetime exemption no tax is due.
Unless you are multimillionare, you'll never pay any gift tax.
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