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The person making the gift must file a gift tax return (Form 709) when the amount of the gift to any one recipient exceeds $12,000. The recipient of the gift does not have to file or pay any taxes on the gift. The gift taxes on the exess gift of $88,000 ($100,000 - $12,000) would be $20,280. However, the gift taxes would not actually have to be paid in this situation because each individual has a credit that is available to offset gift taxes on up to $1,000,000 of excess gifts over his/her lifetime. The following links provide more detail.