The annual gift tax exclusion for 2016 and 2017 is $14,000. This means that you can give away $14,000 or less to any one individual (anyone other than your spouse) and not have to report the gift or gifts to the IRS. If you give more than $14,000 to any one person, you will have to file Form 709, the gift tax return. But just because you file a Form 709 doesn't mean you necessarily owe any tax; this depends on your past gift-giving history. The IRS allows you to give away a total of $5.49 million during your lifetime before a gift tax is owed (this figure is for 2017). This $5.49 million exclusion means that even if you have to file a Form 709 because you gave away more than $14,000 to any one person last year, you will owe taxes only if you have given away more than a total of $5.49 million in the past.
For more information on the gift tax, go here: https://www.elderlawanswers.com/will-you-owe-a-gift-tax-this-year-6069.
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