Hi !
I was told that one can give $13k per person per year in gifts to any one.
but I am not sure if that limit is just for money or does it include money and other property ?

so, this is the situation( I will be filing jointly with my wife).
1) I gifted $12.5k to my daughter
2) Then my wife gifted $12.5 to my daughter
3) Now I have a car for which kbb says the private party value is $18,500. If I gift this car to my daughter in addition to #1 & 2, what taxes should I pay ?

for tax purposes is KBB the proper way to determine the value ? Or should I use something else ?

You can give her the car outright. She will need a DMV gift form (she can get it online) signed by you, and the title signed by you to her, saying father to daughter, so that she won't owe any state vehicle sales tax.
There will be no gift tax on the 12.5K from each spouse in each calendar year (you could have made it a flat 13K) and the car isn't part of the equation. Real estate would be.

Thanks joy, I also want know if I am supposed to file form 709? I am not sure we are doing gift splitting.
Is a married couple paying some one 25k considered as gift splitting ?even tough father and mother cut 2 separate checks from same joint account ?

I think, below was written when the limit was 11k and as per it writing separate checks is recommended.

Where a husband and wife jointly give a gift, they can give $22,000 per year. If, however, one spouse makes the transfer of $22,000, the second spouse must elect gift-splitting. This requires filing a gift tax return and on the gift tax return splitting all gifts 50/50 between the two spouses to get the maximum deduction. If instead you simply write separate checks of $11,000 each from either your individual accounts or a joint account you both own, you probably are OK. This is certainly a better approach

Unfortunately, JoyPulv is incorrect. The car IS considered part of the annual exclusion amount, so if you give it to your daughter in addition to the money, a gift tax return will be required.

Now, no taxes will be due, because you will access the Unified Credit to offset any taxes due.