I want to make a gift of $15,000. What must I report to the IRS and how?

I am single and would like to make a gift of $15,000 to one person. What must I report to the IRS and how?

The 2001 tax act altered the estate and gift tax rules and will be in force until 2010. Previously, a taxpayer had a lifetime "unified credit" that would shelter a certain amount of gifts and/or assets that pass through bequest. Until December 31, 2010, the system of gift and estate taxation was divided. Now a taxpayer has a lifetime exclusion for gifts totaling up to $1 million dollars. In addition, there is an annual exclusion for gifts that are valued up to $12,000 per recipient (couples can give a split gift and gift $24,000 per recipient).

If you give any person a single gift of cash or something valued at $15,000, you will have to report the gift and use some of your lifetime gift credit for the value that exceeds $12,000. If the gift is cash or securities, it may be a good idea to do it at the end of the year; this way, you can spread over 2 years but complete within days, thereby avoiding the need to use up any of your lifetime exclusion.