Taxation of Estates and Gifts
Start with the total amount of gifts made during the year. 26 U.S.C. § 25.2511-2.
Then exclude all medical and educational expenses. 26 U.S.C. § 2503(e).
- Tuition of medical expenses must be paid to the providers, not the beneficiary.
Then deduct charitable gifts. 26 U.S.C. § 2522.
The resulting amount is "taxable gifts".