<prompt> Human: My father had a low interest account with a stagnant 18k that he did not care for he makes a good living and told me that I can have it. Im not really one to take handouts so I decided to transfer the 18k into a CD under my name and leave it.During this transfer I had completely forgotten the 14k gift tax limit and had not even considered it a gift. So now I suppose the IRS will see this as a gift and I will be taxed on 4k?Just wanted to make sure I understand correctly.  <response>: Since the amount exceeds 14k in one year your dad must file form 709 when he does his taxes this year so that the amount can be counted towards his lifetime gift exemption. He wont actually owe any tax on it or anything, it just needs to be reported. There is nothing that you need to do. 