Income Tax question?

Question

Does anyone know about gift taxes? PLz post answer on the forum as it is easy to clarify there
http://www.tutorbuddy.org/Home/tabid/37/forumid/152/threadid/67/scope/posts/Default.aspx

Answer 1

From the details given on the 17 gifts, the following are the allowable amounts

First 4 gifts at $10 - entire amount deductible 4 x $10 = $40

4 gifts at $25 - entire amount deductible 4 x $25 = $100

4 gifts at $50 - only the first $25 of each gift is deductible, 4 x $25 = $100

5 gifts at $100 - only the first $25 of each gift is deductible, 5 x $25 = $125

Total deductible amount for the 17 gifts: $40 + $100 + $100 + $125 = $365

Answer 2

The linked forum won't allow me to answer. However, the question there isn't properly asked, so it's impossible to provide the explanation of the allegedly correct answer.

Business gifts are limited to $25.00 per customer. It says that 20 gifts were given, but only provides the details of 17 gifts.

Answer 3

You can give up to a set limit (now, $12,000) to any one person in any one year with no gift tax consequences of any sort. Over that, you need to file a gift tax return; the gift depletes your lifetime gift limit, but may not have any immediate tax consequences. Check out the IRS web site under Gift tax for details; the IRS has done quite a good job in making information easy to find.