Today, Optima Tax Relief Lead Tax Attorney, Phil, talks about a popular giving season topic: gift taxes. Did you know gifting can sometimes lead to taxes owed?
It’s the season of gifting, making things like real estate, cars, money, and almost everything else with monetary value subject to tax. The gift tax is a federal tax on transfers of money or property made without receiving something of equal value in return. However, most people never owe gift taxes due to the IRS exclusions.
In 2024, you can gift up to $18,000 per individual without triggering the gift tax. Married couples can combine exclusions, gifting up to $36,000 per recipient. In 2025, you can gift up to $19,000 per individual without triggering the gift tax, or $38,000 if you’re married.
Beyond the annual exclusion, the lifetime gift and estate tax exemption allows up to $13.99 million (2025 limit) in gifts over your lifetime before gift taxes apply. You owe gift taxes if you exceed both the annual and lifetime exclusions. By understanding these rules, you can plan your giving while avoiding unnecessary tax implications.
Don’t forget to catch next week’s episode as Phil reviews the most important things to know about IRS tax brackets.
If you need tax help, contact us today for a Free Consultation