What is the maximum gift I can give without incurring a liability for gift tax?
Generally, a U.S. citizen or resident may give any one person up to $12,000 in any year, with no limit on the number of persons. There is no requirement for the recipients to be related to the donor. If you give anyone more than $12,000 in cash or property in any one year, you must file a gift tax return, IRS Form 709 (PDF). See also IRS Publication 950 for more information (PDF). A recipient of a gift does not incur a tax liability on the gift itself. However, if the recipient invests the gift, any subsequent earnings on that investment are subject to tax.
