There is a gift tax, but it's paid by the donor, and they can give up to the annual exclusion amount a year without hitting it. This year, the limit's $14,000.
Once a gift goes past that for the year, the excess starts counting against the donor's lifetime exclusion and needs to be reported on the donor's taxes. Gift taxes come into play once the lifetime exclusion limit is exceeded, and it's $5.4 million.
There is a gift tax, but it's paid by the donor, and they can give up to the annual exclusion amount a year without hitting it. This year, the limit's $14,000.
Once a gift goes past that for the year, the excess starts counting against the donor's lifetime exclusion and needs to be reported on the donor's taxes. Gift taxes come into play once the lifetime exclusion limit is exceeded, and it's $5.4 million.