Any entity can gift up to $13,000 per year to anyone that they want to without incurring any gift tax consequences. Ohio follows the federal exemption for gifts so any amount over $13,000 per year would incur a federal gift tax on the entity making the gift. The recipient never has to pay any taxes on a gift as it is not considered income.
Is that 13,000 per calendar year or 365 days from the first gifting?
It is based on a calendar year. So a gift could be made Dec 31, 2010 for the 2010 year and then again in Jan 1, 2011 for the 2011 year.
You are very welcome.
Come back any time you have questions.
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