Sunday, February 3, 2013

Limit on annual gifts now $14,000

The amount that one person can transfer to another without any concern for gift tax issues is now $14,000 per year. Since this is a per-person limit, a husband and wife may give $28,000 per year to a single person. If the gift is made by husband and wife to a married (or unmarried) couple, such as a son and daughter-in-law, the maximum is $56,000 per year.

Gifts made in excess of this amount require the filing of a gift tax return, to report the transaction, but no gift tax is payable so long as the total lifetime amount transferred by the donor(s) does not exceed the lifetime limit - currently $5.25 million per person, $10.5 million per couple.

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