For income tax purposes, there’s no tax on gifts—to make or receive them. For federal gift tax purposes, there’s an annual exclusion ($14,000 in 2015 and 2016). Above that, you can apply your lifetime exclusion ($5.43 million in 2015 and $5.45 million in 2016). If you’re married and your spouse consents to the gift, you can double these amounts.
The tax on the investment income in excess of $1,700 (may change after 2007) of a child under age 18, based on the parents’ marginal tax rate and computed on Form 8615.