Posted by William Bronchick on February 18, 2002 at 08:42:56:
A gift of more than $11,000 per year triggers gift tax reporting for your friend. If he is married and the spouse owns part of the property, the gift can be $22k/year. Beyond the annual exemption, his/her unified credit (total lifetime transfers exempt from tax) will be reduced. Right now, the credit is $1M and going up, so it may not be an issue for her in terms of taxes, just reporting.