Deductions & credits

the $26K gift would require a gift tax return but you would likely owe no tax. the excess $11K would reduce your lifetime exemption. i say likely because you probably haven't exhausted your $15.7 lifetime exemption.  beware there is no annual exclusion for certain types of gifts.   Why $15K? write to Congress to ask. they are the ones that enact the tax laws, not the IRS.