A new year brings updates in dollar limits. The IRS figures first:
"Annual exclusion" for gifts $16,000
Estate/gift tax exemption equivalent $12,060,000
Recall that the per-year gift exemption relates to reporting requirements only. If one single person gives another single person $20,000, this exceeds the per-year exclusion, but does not trigger a gift tax liability so long as the exemption equivalent is not exceeded. What it usually requires is the filing of a gift tax report using Form 709. See the IRS instructions for that form.
For persons dying in 2022, the new figures as certified by the Michigan Department of Treasury are:
