Question

when no tax is due on a split gift a gift

Answer 1

In the following cases -

1. Gift to spouse (If spouse is US Citizen).

2. Gifts covering another person's tution expenditure , if direct payment made to educational institution (except for payment for books, supplies , room and Board ).

3. If gift is made to IRS Approved charities.

4. Gift made annually up to $15000 to another person. And gift up to $15000 can be made to any number of person. And limit of $15000 applies for each gift receiving person.

5. There is a lifetime exclusion up to $11.80 million in 2018. Means, if gift is made to someone exceeding $15000, the excess amount can be utilized from the lifetime exclusion amount.

6. In case of married person, limit of $15000 applies separately to spouse also.

7. If gift is made for purpose of covering someone's medical expenditure, only if payment is made directly to medical service providers.