Does the person receiving a cash gift have to pay tax or report it?

I'm not sure I read everything about gift and tax, but I think the person giving the cash gift have to report after $11k but only pay tax after $1mil/lifetime. But I'm not sure about the one receiving it.

Does the person receiving a cash gift have to pay tax or report it?
Yes it is true. For gift tax there is a unified tax credit of $ 345000(2004) which works out to a gift exemption per lifetime of $ 1,000,000





Gift tax is payable only by donors.





Why? ..





The purpose is to make the donor liable for estate tax that would have been payable had the owner not made the gift and included that amount in his estate. The estate tax return is considered a person's final gift tax return for purpose of computing the gift tax.








A donor who gives more than $ 11000 gifts or $ 22000 if married and gift splitting is elected, to a single donee should file the gift tax return(which keeps track of a donors lifetime taxable gifts to date).





Other points:





Any transfer of any real or personal property, tangible or intangible property for less than full consideration is taxable gift.





The annual exclusion is per donee per year. No annual exclusion is provided for a gift with future interest. A future interest is where there is a postponement by the donor of the benefit or right to enjoyment of the gift.





There are certain gifts for which there are unlimited exclusions





a) Payment of tuition fees to an educational institution on behalf of a donee.





b) Payment made to a healthcare provider on behalf of a donee





c)Charitable gifts





d)Gifts between spouses





Moreover incomplete gifts are not considered to be gifts for the purpose of gift tax. An incomplete gift is when the gift is conditional or is revocable.





A gift is revocable when the donor reserves the right to change the donee or take back the gift.

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