The Listen to Lawrence Letter: Gift Tax Exemptions

READER QUESTION:

How much can I give away without having to pay gift tax?

MY RESPONSE:

New York has no gift tax. Period…although any taxable gifts you make within 3 years of death will be clawed back and subject to estate tax (but subject to the estate tax exemption, currently $7.16 million).

The federal government does have a gift tax if your lifetime taxable gifts exceed about $14 million (going up to $15 million in 2026).

I hope this helps!