Annual Gift Tax Exclusion

The annual gift tax exclusion is the amount you may give away per person, per year, in a tax-free manner. Gifts given as either lump sum amounts, or as a series of amounts to the same person through out the course of one calendar year, are not subject to the gift tax, if totals do not exceed $15,000. In 2018, the annual gift tax exclusion grew by $1000; up from $14,000 in 2017.┬áThe annual gift tax exclusion figures are applied individually, based on each gift recipient. For example, let’s say that in 2018, you gave $15,000 in cash to your daughter, a $15,000 car to your son, a $15,000 diamond ring to your best friend, and $15,000 worth of stock to each of your your grandkids. In this scenario, none of these offerings would be federally taxable, since no single individual received more than the $15,000 limit.