Gifts are valued at fair market value
So the amount of remodeling costs paid in one tax year (to one person) should be under 14,000 NOT to require that a gift tax form be filed
However, if there is a spouse here, and the gifts are made to each person individually, before paying for the remodeling, that would get you to 28,000 for the household
And finally, the 14,000 annula gift tax exclusion is per person, from the giver's perspective as well ... si Each parent can give 14,000
Thank you. That answers my question.
One other thing to note: ... (you may already know this) ... The lifetime gift & estate tax exclusion is $5,250,000 for one who dies in 2012 (and will continue to rise each year) , so IF there are gifts made OVER 14,000 per year, per person, thereis still no gift or estate tax owed until the gifts (plus that last gift, the estate transfer) reach the lifetime exclusion amount