Gift Tax liability?

Question

My client gave $200,000 to his daugher as a gift. I know that reciever has no tax liability so the giver needs to file gift tax because it was over 12,000. What would be his tax liability? how can we calculate the gift tax? thanks

Answer 1

There might not be any current tax liability for this gift unless he's given huge amounts before (over 1 million total including this gift) - but it could affect how much of his estate is free of estate tax when he dies.

Answer 2

The client won't owe any tax now, but the $200,000 goes against the lifetime $1,000,000 gift tax exemption.