Steven J. Fromm | Steven J. Fromm & Associates, P.C.
You are allowed to make gifts of $13,000 to as many persons as you wish each year. This gift amount is referred to as an annual done exclusion. Also be aware that if you are married your spouse can join in the gift and that will allow you to give another $13,000 to the done. So you can actually give $26,000 under the annual done exclusion. Also, be aware that if the annual done exclusion is exceeded you have a $5,000,000 lifetime gift tax exemption that can also be utilized to avoid gift tax. So any and all gifts you make should not result in any gift taxes.
Answer Applies to: Pennsylvania
Bullivant Houser Bailey PC | Darin Christensen
Currently $13,000 per year per person plus $5,000,000 over your lifetime; you have to file a gift tax return if gifts exceed $13,000 per beneficiary, but don't pay tax until the excess for all beneficiaries exceeds $5,000,000.
Answer Applies to: Oregon
Bricker & Eckler | Chad Dennis Hansen
You may gift up to $13,000 to an individual in 2011, $26,000 if you file jointly and you and your wife both gift. You may be able to gift much more than that, but would then need to file a gift tax return to disclose the gift. A taxpayer may currently gift $5M over his lifetime, which cuts against the estate tax credit. In other words, if you gift the $5M during your lifetime, then you will have no unified credit left to offset against estate taxes upon your death. So, if you stay under the $13,000 per person per year, then you will not cut into your lifetime $5M gift/estate tax credit.
Answer Applies to: Ohio