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.
helps to have rich friends.
this is a nice tax writeoffEDIT: 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.