A national tax applied giving someone else anything of value. For something to be described as a present, the receiving party cannot pay the giver total worth for the present, but may pay an amount less than its total worth. It"s the giver of the present who"s needed to cover the gift tax. The recipient of the present may pay a portion of it, or the gift tax, on the giver"s benefit in case the giver has surpassed hisor her yearly present tax deduction limitation that is private.