Miscellaneous Income

There is no gift tax or inheritance tax to the Recipient. Form 709 is required since it exceeds the current year's annual exclusion of $14,000. You may not owe any money to the IRS because everyone is entitled to a lifetime exclusion for gifts and their estate. In the current year, this federal lifetime exemption is up to $5,250,000 . Cumulative gifts during one's lifetime up to this exclusion although reported, are not taxed federally. State tax laws vary. Please consult with your local CPA.