In few countries, large enough gift are given by people or they transfer their property to others while they are still living, they may require to pay a gift tax. For instance, in the US, the Internal Revenue Service (IRS) has made specific rules about the amount that a person can give to someone else without incurring this tax. In IRS publications there are also guidelines for what is considered a gift, and for the amount of tax that will be incurred which will be based on the value of the gift.
IRS Tax Law
Where a gift tax rules are applied, a person might be allowed to give gifts of a certain amount before that the beneficiary has to pay a gift tax. For instance In IRS law, without paying a gift tax you can give an individual a gift of about $13,000 US Dollars (USD) per year. A husband and wife may both give the same person this gift, which will be a total of $26,000 USD per year. This amount could be changed by IRS, so it is advisable that you check tax law for current allowable amounts.
Gifts on which Tax is not applied
Usually the person that is giving the gift pays the tax, though there are certain circumstances where the person who is receiving the gift can arrange to pay the tax instead.
