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For example, IRS rules on gifting money to family in 2024 stipulate that you can gift up to $18,000 to any one person over the course of the year without having to report the gift to the IRS.
If you give above the exclusion amount, the IRS requires the submission of a gift tax return (Form 709). Recipients typically don’t pay taxes on gifts since a gift isn’t considered income.
This means you’ll pay 40% taxes on that $6 million, or around $1.6 million in gift taxes. Filing Requirements for the Gift Tax If you give a gift of $19,000 or less (starting in 2025), you won ...
The annual gift tax exclusion of $17,000 for 2023 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. You never have to pay ...
For example, if you were extraordinarily generous and bought your friend a car for $20,000, you would exceed the annual limit of $17,000 for 2023 by $3,000 but you wouldn’t owe additional taxes ...
Gift giving can cost more than you bargained for if you have to pay taxes on any gifts you offered up last year. The exclusion for tax year 2022 is $16,000 per recipient in one year. This means you...
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Andrew Schrage of personal finance site Money Crashers added, “Friends and family will appreciate the thought of any gift you gift them; they aren’t expecting an expensive or fancy gift.”