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Richard
Richard, Tax Attorney
Category: Tax
Satisfied Customers: 54026
Experience:  29 years of experience as a tax, real estate, and business attorney.
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I would like to know how much money in one year can I gift

Customer Question

I would like to know how much money in one year can I gift to my two children without them having to pay tax on it?
Submitted: 1 year ago.
Category: Tax
Expert:  Richard replied 1 year ago.

Good morning. My name is ***** ***** I look forward to helping you.

Recipients of gifts are not subject to gift tax. And, there should also be no gift tax due from the donor. Each donor can give $14,000 per year per person under the annual gift exclusion. In addition to that, for any amounts in excess of the $14,000 in a year, each person has a $5,430,000 lifetime exemption....which means a person can give a cumulative amount of up to $5,430,000 in gifts over and above the $14,000 annual gift exclusion amount without incurring gift tax....the donor must file a gift tax return to let the IRS know how much of the lifetime exemption is being used, but there will be no gift tax until cumulative additional gifts have exceeded the $5,430,000.

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