Additional gifts require a tax form, but not necessarily a tax payment. The declaration of donations and taxes are mandatory on the donor, not on the recipient. Non-monetary gifts that have appreciated in value may be subject to capital gains tax. The general rule is that any donation is a taxable gift.
However, there are many exceptions to this rule. Generally, the following gifts are not taxable. The assets you receive as a gift or inheritance are generally not federally taxable income. However, if assets generate income later on (maybe they generate interest or dividends, or you collect rents), that income is likely to be taxable.
IRS Publication 525 has the details. In addition, some states have an inheritance tax. Some money transfers are never considered taxable donations. These types of transfers are tax-free, regardless of the amount.
You can't deduct the value of any donations you make (except for donations that are deductible charitable contributions). While no taxes are due in this situation, the first spouse would have to file a gift tax return stating that the second spouse had agreed to divide the gift. Cash donations are never considered income for the person receiving them, so the recipient does not need to report cash donations to the Internal Revenue Service (IRS). While no taxes are due in this situation, the first parent would have to file a gift tax return stating that the second parent had agreed to divide the gift.
People are often confused with the federal gift tax, thinking that it is the person receiving the gift who should pay the tax. The bad news is that you'll need to file a gift tax return, but the good news is that you probably won't pay a gift tax. On a gift tax return, you indicate the fair market value of the gift on the date of the transfer, its tax base (as a donor) and the identity of the recipient. Do the above and you'll need to fill out a gift tax form when you file your returns, but you may still avoid having to pay any gift taxes.
And if a married couple makes a joint property donation, each can donate up to the annual exclusion. The person making the donation will file the gift tax return, if necessary, and will pay the taxes due.
