The Listen to Lawrence Letter: Annual Exclusion Increased as of 2023

November 17, 2022
November 10, 2022 • Volume 3 Issue 89
Dear Clients and Friends,


The $10,000 annual exclusion that was raised to $11,000, then $12,000, then $13,000, then $14,000, then $15,000, then $16,000…will once again be raised to…wait for it…

$17,000 as of 1/1/23.

This means that you can give up to $17,000 per person each year without any gift tax consequence. But remember, if you exceed this amount it does not mean that you will necessarily pay any tax (unless you have already given away close to $12,000,000 in your lifetime.) It is more complicated than that, but know that the $17,000 figure is a REPORTING REQUIREMENT. That is if you give away more than that you are supposed to file a gift tax return, letting the government know how much you have given away during your lifetime, so they may start taxing you when you exceed the lifetime figure of close to $12,000,000*.  Most of my modest estate clients ignore my advice that they should file (giggle).

By the way, New York does not have a gift tax at all.

*CAVEAT: The approximately $12,000,000 (rounded down) figure is scheduled to drop closer to $6,000,000 on January 1, 2026.


I hope this helps! Please forward this information to your friends and relatives to share these informative answers to some very commonly asked questions.

And, if anyone you know would like to receive this

Listen to Lawrence Letter, just have them email me at and I’ll add them to the list!

As always, please send me your questions. If you are thinking about it, others are probably too, so my answers will no doubt help you and many others.

Let’s stay connected.

Stay safe!


Until next time...peace, health and happiness. Lawrence Eric Davidow