In the United States, gifts of money or property may be subject to a gift tax.

T hese laws have often been a source of confusion for those who do not fully under stand what types of gifts are exempt from the tax, which forms to file, and so o n. Below, you will find some important facts that everyone should know about gift t axes. 1. The IRS defines a gift as any transfer to an individual, either directly or indi rectly, where full consideration (measured in money or money s worth) is not receive d in return. Additionally, actions such as making interest-free loans and/or reduce d-interest loans and selling items below their full value may fall under the gif t tax law. 2. The amount of cash gifts given to an individual by any one person within a ye ar is subject to a cap. As of 2012, the annual gift exclusion is $13,000 anything over is subject to a gift tax. This cap tends to change over time, so make sure to keep up-to-date with the IRS s policies. 3. Numerous types of gifts are excluded from the gift tax, including charity don ations, gifts between spouses, tuition expenses, medical expenses, and political donations. 4. The gift giver is usually responsible for the gift tax, however, in certain c ircumstances, the giftee may arrange to pay the tax. If you need to file a gift tax return, fill out Form 709. Make sure to include c opies of documents and/or appraisals as they apply to your specific situation. C omplex gifting situations, such as property transfers, should be handled by a ta x professional to ensure accuracy and compliance. About the Author A CPA with over 25 years of experience, Adam Greene currently serves as a Partne r at the Melville, New York-based firm of Greene & Company, LLP.