Let me start with very basic question – what is a gift tax ? 26 U.S. Code Chapter 12 – GIFT TAX deals with all aspects of gifts and its taxation under Internal Revenue Code and it basically says that if you gift money or transfer property to another person without any consideration in return, you will have to pay tax on the amount of gift . But , the imposition of tax on such gifts is only if the amount of gift is more than the two limits set under the law – annual gift tax exemption limit of $ 15,000 and lifetime gift tax exemption limit of $11.4 million.
8 Nontaxable Income List
here is a list of most important eight types of income that is tax free under Internal Revenue Code