Certified Public Accountants
UNDERSTANDING GIFT TAX
The fact is that very few people will ever owe any gift tax. If you give more than the annual exclusion amount ($14,000 in 2017), only the excess is a subject to the gift tax and you must file a gift-tax return (Form 709) to keep track of your largess. Even then, it is unlikely you would owe any gift tax since everyone gets a credit that effectively exempts up to $5.25 million of gifts over your lifetime.