I've always heard that a Gift Tax is due if someone is given over $10,000 a year but, who pays?

Question

I would assume the person getting the monetary gift pays the tax.

Answer 1

is that the same as an inheritance tax?

Answer 2

Generally, you do not need to file a gift tax return unless you give someone, other than your spouse, money or property worth more than the annual exclusion ($11,000 in 2002, 2003, 2004 and 2005; $12,000 beginning in 2006) for that year. Although a return may be required, no actual gift tax will become payable until the cumulative lifetime taxable gifts exceed the applicable exclusion amount. The donor is primarily responsible for the payment of the Gift Tax.

Answer 3

amy's answer is very good. The exclusion she mentions covers $1,000,000 in reportable gifts over a lifetime.

Answer 4

12,000 a year now and no one pays tax on it