The Moritz Group, PC
Certified Public Accountant
Gift Tax Returns
What is considered a reportable gift?
A gift is any item (including money) transferred to an individual, where full consideration isn't received in return.
This does not include tuition or medical expenses paid, and a few other exceptions
An individual is allowed to give a gift to another individual up to the annual exclusion amount without filing a gift tax return. (Special rules apply to spouses.)
The annual exclusion amount for 2014, 2015, & 2016 is $14,000. This annual exclusion amount applies to each donee separately.
A gift to an individual of more than $14,000 requires the donor to file a gift tax return.
Filing a Gift Tax Return
If the donor gives gifts of over $14,000 to each donee, then he or she must file an IRS Form 709, United States Gift Tax Return.
The Form 709 is due by April 15th following the year that the gift was made.
In the case that a gift tax must be paid, the donor of the gift usually is responsible for paying the gift tax.