Q: Are all gifts subject to gift tax?
A: The general rule is that all gifts are taxable but the IRS has a few exceptions to this rule. You may typically give the following without triggering a gift tax:
- Gifts to your spouse
- Gifts to qualified charities
- Gifts to a political organization
- Gifts that fall below the annual exclusion amount
- Certain medical expenses for someone (paid directly to the institution)
- Certain educational expenses for someone (tuition only, paid directly to the institution)