Imendez, I think the unlimited educational gift exclusion applies to tuition payments only. If I paid a university $16,000 directly for books, this would not be completely tax-free because it wasn't for tuition. The $2,000 (amount over $14,000) would be considered a taxable gift.
Taken directly from the IRS website: “The payment must be made directly to the qualifying educational organization and it must be for tuition. No educational exclusion is allowed for amounts paid for books, supplies, room and board, or other similar expenses that are not direct tuition costs. To the extent that the payment to the educational organization was for something other than tuition, it is a gift to the individual for whose benefit it was made, and may be offset by the annual exclusion if it is otherwise available.”
https://www.irs.gov/instructions/i709/ch01.html#d0e718
FAR - 85
AUD - 99
REG - 85
BEC - 10/4/13 (Waiting)
Using Becker Self-Study
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