Are there any items that be excluded from being considered as gifts?

chrisk · #1 (**permalink**) 09-09-2008, 08:24 AM

I would appreciate it if you could please tell me if there any items that be excluded from being considered as gifts?

Thanks..

TaxGuru · #2 (**permalink**) 09-09-2008, 08:56 AM

Despite the IRS "Gift Tax" general rule that state "that any gift is a taxable gift, there are many exceptions to this rule." The IRS has specifically stated the following gifts are not considered taxable gifts as shown below.

1. Gifts that are not more than the annual exclusion for the calendar year.

2. Tuition or medical expenses you pay for someone.

3. Gifts to your spouse.

4. Gifts to a political organization for its use.

Furthermore, the IRS has stated that "gifts to qualifying charities are deductible from the value of the gift(s) made."