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[QUOTE="Capt. Tuttle, post: 3416078, member: 191"]
At the federal level, this is wrong. [B] [/B]
If the gift is under $15K, then it does not need to be reported or accounted for.  (Some states have their own gift tax rules.  NY has no lifetime gift tax, just a bad estate tax rule.)
 
[B]    [/B]If it is a gift of OVER $15,000.00, then it must be [U]reported[/U] [B]BY THE GIVER[/B], but no taxes need be paid on it, as long as it is less than $11.5M (cumulative life time total).  [B]IF[/B] a gift tax is due, it is the [B]GIVER[/B] who pays it, not the receiver.  The receiver of a GIFT owes [U]no[/U] tax liability for the transferred asset.  Its a gift, not income or compensation. 
    
    When there is a condition to the "gift", such as[I] go to Duke and play basketball, and I will give you money,[/I] that is, IMO, compensation, not a gift, and is, therefore, taxable. 
    
  There may be some tax recapture of previously non-taxable gifts which are made within 3 years of death (gift causa mortis), but only if the recapture of those gifts bring the estate into a taxable amount.)
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