Gift Tax Law
According to the Internal Revenue Service (IRS), property or assets with value that are transferred from one party to another without the person giving the gift (or donor) receiving fair market value may be subject to taxation. Typically, the donor is responsible for paying the tax, which only applies to gifts exceeding a certain dollar value that changes from year to year. Also note that the gift tax is not charged when a gift is given to a spouse or when money is paid directly to a school institution or to a doctor for tuition or medical bills. To learn more about gift tax rates, exclusions and liabilities, and to find out when it applies to you, visit the links to articles and frequently asked questions on this page.