In this lesson, Nick Palazzolo, CPA, breaks down the basics of gift tax, explaining what constitutes a gift according to the IRS and who is liable for the associated taxes. With a friendly narrative, he clarifies that generally the donor is responsible for the gift tax, illustrating this point with relatable examples. Nick further distinguishes between different recipients, like individuals and organizations, and elaborates on when taxes might be expected or exempted. His practical take on remembering these rules, particularly with the use of personal anecdotes and straightforward logic, makes understanding gift taxes and their applications in various situations both engaging and memorable.