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ALERT
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.
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