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How should dialog be formatted?

Writing dialogue has been a challenge. From the punctuations to the tags, it all still very confusing for me. Some stuff I want to know:

  • What are good tags to use? I've been told "he said" is perfectly fine to use but I shouldn't overuse it. The likes of "he asked" and "he exclaimed" should be avoided.
  • How should I punctuate?
  • How to break up dialog? Do I insert action in there somewhere?
  • How to break dialog midsentence?
  • Any other useful tips and tricks

Correct this: "I've come to offer you a gift," he paused and sensing that she wasn't going to say anything, continued "your money and position back."

/* How do I make this a community wiki?
I'm hoping this can be like a summary of important tips for dialog writing. */



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