Author: Mary Miles
Are you planning to make a financial gift to your loved ones but worried about the gift tax? Here are some tips to eliminate the gift tax.
In 2023, a single individual can gift up to $17,000, while a married couple can gift up to $34,000 without incurring gift tax. And the best part is, you are unlimited in the number of friends or relatives you may gift. If you have multiple loved ones, you can gift up to $17,000 to each as an individual or up to $34,000 combined if you’re married.
The annual exclusion is a valuable exception to the gift tax, allowing you to reduce the size of your taxable estate at death by making gifts throughout your life. However, it’s essential to note that the guidelines for the annual exclusion can change from year to year, and you need to stay informed.
You can visit the IRS website or consult your attorney to learn how to use the annual exclusion to benefit your estate plan. Additionally, consulting a financial planner can provide valuable insights to help you maximize the annual exclusion.
So, if you plan to make a financial gift, take advantage of the annual exclusion and stay updated with the latest guidelines. You can use the annual exclusion to your benefit with the right knowledge.
