Making tax-free gifts
Most of the gifts you make during the year are of no interest to the IRS. The agency is only interested in collecting revenue on taxable gifts. Generally, taxable gifts exclude all tuition and medical payments you make for someone, anything you give to your spouse, contributions you make to some political organizations and for all other gifts that don't exceed the annual exclusion amount. The annual exclusion is the maximum value of gifts you can give to each person. For example, during the 2014 tax year, the law allows you to make an unlimited number of tax-free gifts as long as no one receives more than $14,000. Therefore, you can make hundreds of $14,000 gifts without paying a dollar in gift tax as long as each recipient is a different person.