The Listen to Lawrence Letter: The Annual Gift Tax Exclusion

December 1, 2023
November 30, 2023 • Volume 4 Issue 195

The IRS just announced that beginning January 1, 2024, the Gift Tax Annual Exclusion will now be $18,000 (up from $17,000).

Remember, what this really means is that if you give away more than $18,000 to any person within the year, you trigger a reporting requirement; that is, you are supposed to file a gift tax return but not necessarily pay any tax. You will only pay a tax if during your lifetime you give away more than the Federal gift tax exemption, which as of January 1, 2024, is $13,610,000.

For example, if you wrote a $1 million dollar check to a child next year you would have to file a gift tax return (over $18,000) but pay no tax (less than $13,610,000).

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

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As always, please send your questions in! 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!