The annual gift tax exclusion is the maximum amount of money or property value that one person can give to another person in a single year without incurring a gift tax or having to report the gift to the IRS.
As of July 2023, the annual gift tax exclusion in the United States is $17,000 per recipient per year. This means that an individual can give up to $17,000 each to any number of individuals in a single year without having to pay gift tax or report the gift.
For couples, they can jointly gift up to $34,000 to any individual tax-free and without having to report it.
Keep in mind that this is the amount for the annual gift tax exclusion and the actual estate tax exemption amount is much higher (currently $12,920,000). Any gift that exceeds this annual exclusion counts towards the lifetime gift and estate tax exemption.
Also, remember that tax laws are subject to change, so it’s always a good idea to check for updates or consult with a tax professional for the most current information.
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