The annual gift tax exclusion of $18,000 for 2024 is the amount of money that you can give as a gift to one person, in any given year, without having to pay any gift tax
This is more than I remember, but I think I’m confusing it with the $6000 limit for contributions to an IRA account. I think it went up to $7000 this year, but I digress.
That’s not the limit where they tax a gift, that’s the limit for where you have to report a gift. You only pay taxes when your lifetime total goes above 12.92 million. Obviously, almost no one hits that, so gift taxes almost never matter.
EDIT: Not tax deductible.
Typically not = not for poor people
til, thanks!
Since individuals aren’t 501©3 non-profits it wouldnt be tax deductible and is treated by the IRS as a gift, so a gift tax may apply depending on amount given. Just in case you were curious as to why it’s not a tax write-off.
If anyone is looking for the gift tax limit I got the above quote from https://smartasset.com/retirement/gift-tax-limits
This is more than I remember, but I think I’m confusing it with the $6000 limit for contributions to an IRA account. I think it went up to $7000 this year, but I digress.
That’s not the limit where they tax a gift, that’s the limit for where you have to report a gift. You only pay taxes when your lifetime total goes above 12.92 million. Obviously, almost no one hits that, so gift taxes almost never matter.