Gift Tax Law

Gift Tax Law is an area of law that governs how money and assets are legally transferred from one party to another. In this section of FreeAdvice, you will find information and advice regarding gift tax calculation, liabilities and exclusions, marital deductions, charitable gifts, educational expenses, and much more. 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. As of 2011, the gift tax exclusion is $13,000 per recipient, which means that you can give a gift up to this amount each year without having to pay taxes on that gift. One should keep in mind that the $13,000 exclusion amount is subject to change from year to year. It is also important to note that 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.