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A gifter/donor can make gifts to as many individuals as they want. The total gifts in a calendar year to any one individual cannot exceed $12,000. All gifts during the year are combined, birthday, anniversary, Christmas, graduation, etc. If one individual recieves more than $12,000, the gifter will be required to file a gift tax return Form 709. However, there will be no gift tax to pay until the combined excess gifts exceed $1,000,000.
For example, your uncle has 14 nieces and nephews, and each of them are married. He can make 28 gifts of $12,000 each or $336,000 and not have to file a return. If he were to give each of them $20,000 or $560,000 he would need to file a gift tax return, Taxable gifts would be $224,000, but he would not owe tax because the total is below th $1,000,000. Going forward, he would still be able to make taxable gifts of $776,000 before owing gift tax. Each year he can gift the $12,000.
The individual receiving the gift is never taxed.
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